Regarded as one of the top strategic technology trends for 2022, hyperautomation has become a significant part of the banking and finance industry. Banking and finance institutions are at the forefront of deploying this technology to unlock new possibilities and expand automation into all sorts of new banking areas. While banks were already moving towards hyperautomation, the COVID-19 pandemic has actually accelerated their efforts. Instead of applying technology individually, banks are switching to hyper-automation, the combination of multiple technologies including Intelligent Automation (AI), Machine Learning (ML) and Robotic Process Automation (RPA). Banks planning to incorporate hyper automation technology into their financial domain need to understand exactly what the phrase refers to. In fact, the journey to complete automation can be realized with outsourcing services.
Hyperautomation in Banking – Explained
According to a recent Deloitte report, the COVID 19 pandemic has been “reshaping the global banking industry on a number of dimensions, ushering in a new competitive landscape, prompting a new wave of innovation, recasting the role of branches, and of course, accelerating digitization in almost every sphere of banking and capital markets.” In simple terms, hyperautomation is a digital transformation strategy that involves automating as many business processes as possible while digitally augmenting the processes that require human input. In fact, hyperautomation isn’t really a single entity; instead, it requires the coordinated implementation of multiple tools or platforms such as – Artificial intelligence (AI), Machine learning, robotic process automation (RPA) and Intelligent Business Process Management to automate manual tasks. However, it is important to note that hyperautomation is not meant to replace human workers but loop them into the process. Hyperautomation of the entire core banking system is the solution for reducing processing time, minimizing operating expenses, and focusing on customer relationships. In fact, the technology is also used for processing payments, managing accounts, and automating certain back-office functions such as risk management and credit scoring.
Benefits of Hyperautomation in the Banking Sector
The banking and finance industry has been using hyperautomation for a long time now. However, with the advent of block chain technology, a new era of hyper-automation in banking and finance has risen. The role of hyper-automation is to increase the speed at which banks can process transactions; manage their assets, and offer products and services to customers. Right from automating onboarding processes in loans to increasing data quality for better decision making, the technology has the potential to augment staff’s abilities while reducing operational expenses and human errors. The key benefits of hyperautomation in banking include –
- Gaining Operational Efficiency – Hyperautomation allows banking institutions to streamline operations, improve accuracy, accelerate processing, and improve overall customer experience. This in turn leads to higher ROI and profitability. Hyperautomation technologies help reduce operational expenses and shifting banking staff to other core financial tasks, while leaving the mundane tasks to machines or other software systems.
- Ensuring Compliance – Banks and finance firms set a high priority on compliance in order to prevent penalties, risks, and financial fraud. Hyperautomation of management processes allows banks to meet complex regulatory reporting requirements, improve reporting accuracy, and ensure transparency to improve compliance.
- Reduced Errors – Banks can use hyper-automation to detect, reduce and solve system errors, ensuring that customers are always served properly. With the help of image recognition solutions and artificial intelligence, errors in big data security systems can be validated in a matter of seconds and corrected. This results in error reduction for banking services and better customer service.
- Saves Time – Auto-document generation software can be used to automate data entry process. Hyper-automation can help the banking sector save time by eliminating tedious manual operations such as typing data into databases manually, or copying information from one place to another.
- Reduces Expenses – Another significant benefit of hyper-automation is that it can save both time and money. With systems like IBM Watson, businesses can generate new revenue streams by offering big data analytics services. For instance, a bank can provide an AI solution for customers who want to make more informed decisions about their finances or investments. The bank could then use this data to generate revenue from selling these insights to other customers.
- Increased Productivity – Since the technology eliminates the need for manual supervision or intervention, banking employees can spend more time performing creative work and invest less time on mundane tasks. The RPA agents or automation software will handle all the repetitive tasks, thereby enhancing the productivity of the banking business and the employees.
- Customer Experience – Hyperautomation allows banks to manage huge volumes of services and respond to a wide range of customer queries while enhancing service quality. Due to the evolution of the banking industry, it is fundamental to integrate new technology in order to redefine how banks operate and create value in order to improve the customer experience.
To meet the growing customer demands and to change market trends, it is essential that businesses start adopting some form of automation into their existing workflow. Deploying hyperautomation in banking operations is an inevitable trend in the development process. Employing hyperautomation technology can help banks improve employee productivity, work efficiency and most importantly customer satisfaction. Banking institutions can consider associating with reliable business process outsourcing companies to carry out various financial processes more quickly and efficiently.
