Top 5 financial services that are ripe for automation

Intelligent automation in credit risk management Deloitte UK

automation in banking

We’re doing roughly 1,000 online applications—with less than half of those coming from existing customers. So, 500 loan applications coming through the pipeline would require 500 hours of manual labor. This was back in the 1960’s but it tells you everything you need to know about the popularity (and uptake) of RPA in the banking industry. Bank of America is using AI-driven technologies with a major focus on fraud detection and secure online trading functions.

What is this automation?

The application of technology, programs, robotics or processes to achieve outcomes with minimal human input.

AI automation entered the Banking Industry quietly with only automating traditional and simple jobs like data entries, cash deposit, passbook updating and salary uploads to name a few. There is some disagreement over whether RPA counts as AI, largely because most of its use cases don’t demonstrate true ‘intelligence’. Machine learning (ML), on the other hand, is firmly in the AI camp, and it’s also seeing increasing adoption among financial services organisations.

How to use Workato and Azure Service Bus to create an API façade

Some of the sample tasks that BPA takes care of include data extraction, file transfers, and report generation. By employing a virtual workforce, insurers can significantly increase the number of claims they are able to process, while also identifying fraud at a much more granular level. Virtual workers are able to extract information from claimant documents and compare this data with previously submitted claims.


In order to successfully overcome this, banks need a cost-effective, agile servicing backbone, one that has automation built-in, to design systems that place customers at the centre of their operations. This can be accentuated by building lean, industrialised

processes from modular, universal components, and by having high-performing operational teams with strong leadership. Our recent research found 49% of senior industry leaders believe it is important to future-proof resilience models to ensure they are fit-for-purpose. At NTT DATA, we use tech solutions to help banks and FIs optimise their internal processes and maximise their efficiency. In the case of reverse factoring, we’ve looked at automation as a tool to reduce the time and capital they need to invest to build strong and lasting relationships with suppliers.


Without process automation, banks are missing the opportunity of 100% straight through processing (STP). Automation can increase productivity by up to five times, remove bottlenecks and have a positive impact on customer experience. This applies to not only the customer (in both B2B and B2C banking) but also the business and its employees.

  • Artificial intelligence has come under fire for making prejudice against minority groups applying for loans worse.
  • As a result, it can be difficult to justify these choices, which can make businesses difficult with authorities if the system fails or is thought unjust.
  • The KPMG CIO Survey suggests 69% of organisations believe newly created jobs spurred by automation should adequately compensate for any losses.

Deloitte LLP is the United Kingdom affiliate of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). Please see About Deloitte to learn more about our global network of member firms. Automation is the future – helped by the development of cloud based access which allows you to bring together all your applications and decisioning needs into a single place. As a result, you can make more sense of your data and unify your business processes, be more accurate, more efficient and armed with an ability to act on previously unseen insight.

Key contacts

These are currently completed by large teams of Know Your Customer (KYC) analysts and are often structured and repetitive in nature – for example, checking sanctions reports, government databases and other key regulatory sources. Just like anti-money-laundering checking, banks have historically thrown people at the KYC problem, but as the regulatory grip begins to loosen, they now https://www.metadialog.com/ have the opportunity to review the efficiency of these processes. The scale of the opportunity is so vast that it can sometimes be a challenge for banks and insurance firms to know where to start or how to identify the process automations that will deliver most value. With that in mind, here are five processes within the financial services sector that are ripe for automation.

Quick Q&A on How banks and credit unions can leverage cloud … – BAI

Quick Q&A on How banks and credit unions can leverage cloud ….

Posted: Tue, 19 Sep 2023 14:16:02 GMT [source]

The BoE recently published an in-depth report that showed ML is now used across a range of business functions from the front to the back end. Financial services are forecast to be among the most vulnerable sectors to automation in the short term because algorithms will help produce faster, more efficient analysis, assessments and reports. A KPMG-led study suggested up to 20% of jobs in the sector could automated within just five years.

Digital transformation and banking automation have been vital to improving the customer experience. Some of the most significant advantages have come from automating customer onboarding, opening accounts, and transfers, to name a few. When banks, credit unions, and other financial institutions use automation to enhance core business processes, it’s referred to as banking automation. RPA and intelligent automation can reduce repetitive, business rule-driven work, improve controls, quality and scalability—and operate 24/7.

automation in banking

Operating 24/7, this automated process eliminates the need for physical banking during restricted hours, saving valuable man-hours. It also enhances security by minimizing financial risks and preventing fraud incidents through automated reconciliation. Developing omnichannel services also provides business advantages through real-time, event driven, and usage-based insights. The data captured through consolidated multi-channel services also helps strategise offerings like services, products, offers, integration with third parties, etc. Customer activity-based analytics enable innovation, experimentation, and market-oriented offerings to gain competitive advantage. There is a careful balance to strike between automated and human solutions in any industry but finance can be very delicate.

For in-house legal teams, this can create bottlenecks due to the volume of work that needs approval, while for law firms a document may need to pass through very busy senior lawyers. Approvals can be triggered in multiple ways, such as the creation of the document, a questionnaire trigger (such as deal value exceeding a certain value), or by a change in a document status (e.g. being ready for signature). Instead, it looks to add value by reducing the time-consuming and draining work that goes into drafting documents. So, the solution targets to help teams pluck out the high-value work amongst the high volume of documents. Whether you are a bank or a law firm, there are far-reaching benefits to automating the production of loan documents.

automation in banking

Funding Xchange chief executive officer Katrin Herrling agreed with Moss that “the vast majority of customers and intermediaries are seeking personal relationships that build trust between the people helping to get a deal done. But they want to be supported automation in banking by good systems that take away the pain of administrative processes”. While you might be wondering why this is such an issue – despite the benefits of automation listed above – real problems can arise when banking operations increase in complexity.

How does automation affect banking?

The automation of banking has impacted banks positively by saving time and elevating employee workload. The influence of automation on workload has enabled banks to reduce errors and frauds which contributes to productivity.