The Banking and finance industry was one of the first to automate processes to reduce manual labor, minimize redundancies in operations and ensure a sustainable future. While this automation-powered transformation is still in its nascent stage, it is undoubtedly set to create newer opportunities for BFSI industry in the near future. Let’s take a look at some of the most promising BFSI automation trends of 2019.
Robotic Process Automation (RPA):
Robotic Process Automation (RPA) is a fast-emerging practice, expected to be a game changer in enabling financial institutions step up their digital transformation initiatives. It helps to accelerate operations by executing previously programmed algorithms across varied ranges of structured and unstructured data. RPA not only enables faster and more-informed decision-making but also simplifies compliance and regulations for banks, auto-generates reports and facilitates operational cost reduction. Growing at an exponential rate, RPA is expected to reach $2.9Bn by 2021, a huge jump from the $250Mn of 2016.
Artificial Intelligence (AI):
Artificial Intelligence (AI) is becoming increasingly important both for enhancing capabilities of BFSI institutions, as well as meeting business needs. In recent years, there’s been explosive growth in the availability of technologies like Cloud Computing, Blockchain, AR and VR, Machine Learning, etc., all of which have led to a constant influx of structured and unstructured data. That, coupled with increasing competition and demand for innovation, has necessitated the use of AI in financial services. AI’s reach is all encompassing, impacting strategizing to marketing, compliance to security and customer experience.
“86% of bank executives agree that the widespread use of AI provides for a competitive advantage beyond cost.” – Accenture
Open Banking API:
While Open Banking was initiated in 2018, banks are understanding its true potential only today. By enabling customers to securely share their account and payment data with third parties through application programming interfaces (APIs), banks are looking at expanding their services. This open banking revolution speaks of greater collaboration and may soon lead to the creation of a more inclusive banking ecosystem that may comprise of many other businesses besides financial services, all aiming at making customers’ experiences more fulfilling. While customer consent is the bedrock of this technology and the market still has a long way to go till maturity, the technology has definitely started improving on precision.
PWC predicts that 71% of SMEs will adopt Open Banking API by 2022, while 64% of adults will already have started using it by 2022.
The impact of smart machines, including virtual customer assistants, virtual personal assistants, smart vision systems, smart advisors as well as a wide variety of natural-language technologies, is becoming more and more evident. Both banks and customers are increasingly depending on virtual concierges for hassle-free operations and better engagement. Understandably, customers will soon be preferring banks offering maximum convenience with minimum friction.
Most financial organizations understand that there is an acute need to leverage these technologies in order to enhance their core competencies. What they also need to understand that each implementation must first be centered around improving human experiences, both internally and externally. Only then can the organizational growth be truly sustainable.