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Strategies Fast Tracking Transformations Across the Banking Ecosystem

By Bijon Mullick, Business Leader, Datamatics Global Services Ltd

Bijon Mullick, Business Leader, Datamatics Global Services Ltd

The pandemic has led banks to accelerate their digital transformation efforts in a bid to combat reduced footfalls and the impact of scattered internal processes. They are now actively embracing the power of intelligent automation, complemented by AI, deep learning, mobile banking, and digital workplace solutions to increase employee productivity and streamline CX across channels.

However, outdated IT architecture and reliance on large cross-linked operational units and manpower for critical value-adding tasks, like credit verification, make it hard for banks to realize the true benefits of the initiative. Further, highly complex processes and regulatory restrictions emerging from acquisitions and mergers may prove hard to automate and digitalize. The new economics of banking, therefore, requires the adoption of intelligent, integrated, and value-augmenting automation solutions under a modernized, and scalable IT infrastructure to fuel quick data processing and better risk management at a relatively nominal cost.

In this article, we discuss four key areas in the digital banking ecosystem, where banks can improvise, adapt, and leverage true digital transformation across the front, middle, and back offices:

  1. Power Your BPM

The ubiquitous nature of technology has long helped banks to optimize their back-end with BPM or EDMS solutions implemented across core and point solutions, yet footprints of manual tasks persist. A BPM-powered intelligent automation solution expedites the overall workflow freeing up resources to handle customer churn, hence, delivering a satisfactory return on investment. Manual tasks for loan processing like document scanning, data entry, and eyeballing for scrutiny followed by manual AV/CV, can be converted into automated workflows powered by Intelligent Data Capture, Robotic Process Automation, and AI / ML. Banks, through this set up of unified integrations, can provide Straight Through Processing (STP) to their consumers throughout the credit verification process, and disbursals.

2. Automated Back Office Operations

Minimal error inflow and quick TAT are vital for seamless and profitable back-end operations. However, the majority of traditional banks, due to lack of automation, are burdened with labor-intensive, and error-prone tasks like manual KYC, bank reconciliation, remittance processes, credit limit extensions, tracking expired LC, guarantees, salary processing for corporate customers, etc. This impacts the customer-facing business processes, and, hence banks lose out on tech-savvy customers who are accustomed to instant gratification and quick services.

Robotic Process Automation and Intelligent Data Capture powered with AI / ML can enable banks to perform document classification turning data into powerful insights and knowledge. RPA can further help banks to automate back-end operations mentioned above along with AI/ML to read and analyze data from large organizational document sets, ascertaining and highlighting the imminent risks in the shortest possible time.

  1. Unified Digital Platform

Most banks today deploy front-end apps in silos for individual product lines across retail, SMEs, or corporate lending. This overburdens their back-end with the tasks of consolidating data from various touchpoints. A unified digital platform, powered by AI / ML can be used to ensure incremental document collection in case an existing customer opts for other products. This lets the salesperson capture information from all sources, at a single point and process it in conjunction with back-office operations, with minimal error probability.

Furthermore, expansion initiatives to rural areas can incorporate this unified system, and configure it to work offline and sync when online. Banks under the hub & spoke model can send the information collected at a spoke location straight to the CPC, and deploy a responsive app on the front-end featuring a self-service model to expand client acquisitions.

  1. Digital Workplace

With shortened office hours and high reliance on WFH models, businesses unaccustomed to the nuances of WFH face challenges that arise from the absence of digital collaborative infrastructure and teamwork. Moreover, monitoring employees becomes tough without an advanced tracking system. In a bid to overcome this challenge, banks are actively adopting a digital workplace solution that supports all vital operations remotely and helps organizations adopt principles of a GREEN workplace that replaces the paper-based file movement and storage. The circulars in the repository can be digitally routed and approved within given timelines.

Conclusion

The emergence of high-end IT development has become the key to seamless documentation flow, error-free, and large-scale automation of banking processes. Besides, a synergy of experience and in-depth understanding of automation intricacies is imperative for a post-pandemic resurgence of banks against the fintech heavyweights. They must therefore consider allying up with partners that have previously led successful automation initiatives, across banks and financial institutions. Datamatics, a global leader in digital transformation has delivered 800+ RPA processes for multiple banks to increase operational efficiency and productivity. It has also implemented BPM solutions and unified digital platforms to improve the overall customer experience and turnaround time for loan processing.  These interventions can help banks accelerate business transformation and compete in the post pandemic era.

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