Banks today have to deal with unprecedented challenges – from growing chances of a recession, increasing customers’ expectations, and emerging fintech competition, to name a few. To stay competitive and profitable in the digital age, banks must innovate how they operate through the implementation of Intelligent Automation (IA) – a combination of Robotic Process Automation (RPA), Artificial Intelligence (AI), and other developing technologies.
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The emergence of Intelligent Automation in Banking
Banking was once a paper-intensive industry with slow, manual, and troublesome processes. For years, traditional banks have been characterized by physical branches, and many employees dealing with long lines of customers. However, with the advent and expansion of digital transformation, banks have begun to embrace advanced technologies and automation to digitize and automate their processes. From customer onboarding to loan processing, banks can now address their most urgent issues, streamline operations, and deliver customers with greater and faster services thanks to Intelligent Automation.
Significantly, many banking industry organizations are aware of IA’s potential. A 2019 report stated that nearly 85% of banks have already implemented Intelligent Automation to accelerate several core functions. According to IDC, banking will remain the second-largest industry for AI spending by 2024. Gartner research shows that around 80% of financial leaders have implemented, or are planning to implement, RPA.
How can Intelligent Automation be applied to the Banking industry?
Know your customer (KYC)
By adopting Intelligent Automation, banks can enhance their KYC processes, allowing for improved customer experience with rapid onboarding, and increased employee performance by reducing manual intervention.
- Extract essential information from documents accurately with RPA.
- Validate customer information based on multiple databases and platforms (structured/unstructured) using Intelligent Document Processing (IDP).
- Identify risk areas with Machine Learning (ML) algorithms.
- Compile customer data across different systems, analyze and create a comprehensive view of customer data through AI/ML.
Customer service
AI-led chatbots powered by RPA can deliver much more intelligent chatbots based on customers’ profiles, enabling faster and more superior customer experience.
- Engage customers in natural conversation with more personalized and contextually relevant responses.
- Offer 24/7 customer service.
- Understand, and provide timely and appropriate actions to help users resolve requests.
Loan processing
Intelligent Automation adoption can significantly boost manual paper-based loan processing by automating data collection, credit risk assessment, and document verification.
- Extract and verify customers’ information against multiple identity documents with RPA.
- Consolidate internal and external documents to prepare an assessment for the loan decision with RPA/AI.
- Improve the accuracy of their loan final decisions with ML-based credit scoring models.
Regulatory compliance
Intelligent bots can help banks meet complex regulatory requirements and consistent adherence to set rules without much human intervention.
- Track and monitor compliance-evidencing and audit trails with RPA.
- Monitor regulatory announcements for upcoming changes using RPA/AI.
- Scan and process legal and regulatory documents with IDP and Natural Language Processing (NLP).
Anti-money laundering
The adoption of Intelligent Automation allows banks to comply with Anti-money laundering regulations, reducing regulatory risk, and facilitating a transparent operation.
- Collect customer data from multiple databases with RPA.
- Compare and monitor customer data, account statements, and transactions to detect suspicious transactions or activities through IDP and AI algorithms.
- If there are any fraud or suspicious activities that match the evaluation criteria, banks only need to create a transaction review ticket with the security department, and the whole process will be automatically carried out by bots.
Benefits of Intelligent Automation in Banking
Intelligent Automation provides unique opportunities for the banking industry to transform its operations and strengthen processes – the key to comprehensive automation and digital transformation in a rapidly changing world.
Intelligent Automation in banking offers several tangible benefits:
- Save time: When IA is adopted, banks can reduce the time needed to perform tasks by up to 90%, indicated Accenture.
- Cut down costs: Thanks to RPA implementation, businesses can enjoy a 30% cost reduction, according to Deloitte. Accenture shows a more optimistic prediction and suggests an 80% expense cut down with RPA in finance for specific tasks.
- Boost operational efficiency: Robots can perform up to 5 times faster than humans on specific tasks, according to Construction Robotics. Therefore, businesses can accelerate workflow, maximize productivity, and free up their employees from mundane tasks to focus on higher-value jobs.
- Enhance security: IA algorithms can monitor, assess threats, and report fraud before exploitation, thereby reducing potential vulnerabilities and ensuring high-security levels.
- Optimize customer experience: By eliminating processing errors, and increasing the speed/accuracy of the interactions with customers, banks ensure their customers are provided with high-quality experiences.
akaBot – The ultimate choice to reinvent your bank!
Intelligent automation in the banking industry is not a fad, but a long-term and consistent change. It is time for banks to take advantage of advanced technology to adapt to the ever-changing needs and expectations of the market and customers.
In Vietnam, akaBot (FPT) is a comprehensive automation solution for businesses in various industries, harnessing the power of RPA by integrating with different complementary technologies. akaBot has more than 3,500 business customers in 21 countries globally, recognized by many prestigious global review platforms (G2, IDC, Gartner). Some outstanding achievements include Top 20 RPA Vendors (Gartner Peer Insight), and RPA Leader in G2’s report for 5th consecutive seasons.
The highlight success story below will demonstrate how TPBank can actualize its automation vision with akaBot’s comprehensive solutions.
Challenges:
TPBank sets the goal to become one of the leading banks in digital transformation and automation in Vietnam. The bank needs to deploy mass automation to all operational departments quickly to achieve undisruptive operation while saving costs and ensuring high accuracy levels and interaction with other complex systems.
Solution:
TPBank automation project started with Proof of Concept (PoC) and the Pilot phase with a small process group. The implementation team selected less than 10 processes with low to medium complexity to prioritize the application of RPA first (Fast Automation).
After that, TPBank entered the “Mass Automation” phase, delivering 400+ automated processes at 15 divisions.
Results:
- Automate up to 30% of current tasks
- Ensure 24/7 continuous operation
- Reduce error rates by 98%
- Decrease task processing time by 80%
- Reduce operating costs by up to 40%
With the akaBot’s application, TPBank and FPT were recognized as the “Best Process Automation Bank” award at The Asian Banker Vietnam Award 2021.
To quickly embark on the journey of comprehensive automation and advance to complete digital transformation, contact us today.
References
Intelligent Automation in Financial Services & Banking in 2023
A complete overview of Intelligent Automation’s role in Banking
Robotic Process Automation (RPA) in Finance
Top 15 RPA Use Cases & Examples in Banking in 2023
Top Use Cases for Banking Automation
akaBot (FPT) is the operation optimization solution for enterprises based on RPA (Robotic Process Automation) platform combined with Process Mining, OCR, Intelligent Document Processing, Machine Learning, Conversational AI, etc. Serving clients in 20+ countries, across 08 domains such as Banking & Finances, Retails, IT Services, Manufacturing, and Logistics…, akaBot is featured by Gartner Peer Insights, G2, and ranked as Top 6 Global RPA Platform by Software Reviews. akaBot also won the prestigious Stevie Award, The Asian Banker Award 2021, etc.
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