By now, most Financial Institutes have explored the power of Robotic Process Automation (RPA) to automate their mundane processes. RPA has been successful in extending the key benefits i.e. speed & accuracy for the processes automated and able to optimize the cost (TCO) to a great extent. Recently, with Automation 2.0 [IPA] which is empowered by Artificial Intelligence, the business leaders are leveraging on IPA capabilities to enhance various business processes such as Budgeting, Analytics, Forecasting, etc.
As the Financial Regulators across the Globe are enforcing various regulations and at the same time financial institutes also need to accelerate their Digitization agenda to cope up with the competition, the Data volumes generated, processed, managed, and stored are increasing exponentially. No. of processes to cater to all the compliances and regulations. The RPA has reduced the burden of simple processes effectively and the benefits the automation such as faster TAT (Turn Around Time), Accuracy even at large volumes round the clock is well-realized and encashed.
In today’s dynamic scenario, where the customer expectations are increasing & the competition landscape is getting more aggressive, Business leaders need to be more innovative and equally cost-effective. Technology adoption for something different “Out of the Box” is the need of the hour.
Business Leaders should explore AI capabilities
Adoption of Artificial Intelligence has been a trend since it can imitate human intelligence and reasoning, allowing the system to learn, predict and recommend what to do next. It can analyze historical data and suggest predictive decisions. AI has Capabilities such as follows
a) Persona Analysis – By tracking a person’s preferences over a period or subject, predict the person’s choices, his likes/dislikes. This profile gets continually refined each time the person does something. This technique has effectively contributed to building Customer Behaviour Analysis. Today, with every Financial Institute is making every attempt of attracting new customers, such analytics are vital to understanding the future needs of the customer and approach the offers proactively. Interestingly, this has a great use case in HR Management and this can be effectively used to build further capability analysis.
b) Data / Trend Predictions – The probable events/data can be predicted based on available data. Prediction systems are used to predict stock and currency exchange prices, and manage inventory by advising the merchant when to bring in new stocks. This can be a decision support system that can build the required intelligence-based the on past trends and scenarios. Financial Analysts are building such algorithms to get a sense of future trends. The success of such depends on the volume of Data and trends analyzed. With few initial iterations, such predictions are matured to generate effective output.
c) Natural Language Processing (NLP) – NLP is a set of algorithms build to react or respond humanly. We call this Natural Language Processing, or NLP. Typically, humans do not communicate/converse as computers do. A conversation system is designed to understand human speech and reply in natural language. These can take the form of voice, text, and even images.
A chatbot is a simple and widely used example of the effective implementation of NLP. Chatbots are now able to handle routine queries and questions. A humanly interaction and response make the interaction live and the customer need not wait in a queue to get the response. An intelligent Chatbot is generally AI-powered and completely autonomous, with no human intervention.
d) Facial recognition – This is generally categorized as Object Identification. Based on the structure, pattern, and associated data, the AI can be programmed for facial recognition. This has great value as one of the options for Authentication. Recently, for KYC this has been further upgraded to Video KYC. Customer need not come to branch; he can execute entire account opening/renewal activities from anywhere.
Key Takeaways
Typically, Technology is a Cost Centre but all upcoming innovations such as IPA can empower every Business function fine-tuned for better accuracy and more predictive as well. Active use of technology has the straight benefit of retaining existing customers and getting the new generation on board.
AI-enabled automation has multiple use cases and has the power to enhance our existing practices in an automated and accurate way. As more data is used for patterning/trending, the more effective output can be expected. This can resolve many dead-lock situations or guide decision-makers with probable and give them the room for corrections.
Organizations should chalk out a systematic plan for Automation and then the IPA so that the current global challenges such as Human resource crunch, limitations of predictive analysis, etc.
So let’s gear up and explore the power of intelligent automation for cost-effective and more precise processes with quicker responses.
Image Source: https://cloudblogs.microsoft.com/
Global iTS is a leading Microsoft Dynamics 365 ERP and CRM Partner, headquartered in the UK. With 300+ clients, successfully proven implementations, an excellent support system by our experienced domain specialist, and a good track record of customer retention. Also, it has a strong foothold and customer base across other GCC countries (Bahrain, Saudi Arabia, Oman, Kuwait, UAE, and Qatar).
Global iTS is mainly into the specialized requirements in Financial Services and Insurance sectors focusing on Digital Transformation journey in Retail Banking, Commercial Banking, Insurance Providers, Private Equity, and Investment Banking by bringing Artificial Intelligence, Machine Learning, Blockchain, and Robotic Process Automation technologies and enhanced their productivity and profitability. We bring in over 15 years of international expertise to digitally transform any aspect of a client’s business.
