As banking embraces technology, hyperautomation technology plays a major role in digitizing independent processes, improving service quality and transforming operations. In addition to improving independent tasks, connected technologies add efficiencies to overall operations that bring together separate processes and departments to develop innovative solutions and industry-wide impact. Artificial Intelligence (AI) and Low Code are playing a key role in transforming banking by providing flexibility and reduced turnaround time to deliver faster solutions and efficient process execution at minimal investment compared to infrastructure investment to achieve similar results.
While AI enables digital workforces to mimic human intelligence to complete tasks performed by humans or require human intelligence at a rapid pace, low-code development simplifies coding and building applications to provide simple drag-and-drop functionality, making application development more accessible and more faster than ever before. Technology plays an important role in building the foundation of the future of banking as it implements solutions in shorter turnaround times without compromising efficiency while improving the customer experience. Here are some ways AI and Low Code could change the future of banking.
Increases scalability and adaptability
The introduction of AI and Low Code in banking has increased adaptability and resilience by bringing process improvements, saving valuable resources and time. The technology is scalable and enables institutions to make critical changes to meet future market demands. In addition, this technology helps the adoption of best practices into existing operations with minimal disruption.
During a pandemic, when it is necessary to ensure remote work and social distancing, a digital workforce powered by AI ensures business continuity and productivity without affecting existing functions. Access to digital banking and remote services is shaping the future of banking by developing innovative solutions to meet customer demands. Furthermore, the inclusion of a digital workforce enables the handling of a high volume of operations to support multiple customers and stakeholders while ensuring human job security.
Previously, the acceptance of new customers and the creation of their accounts or applications for new loans could take customers and institutions multiple steps and time-consuming manual checks. However, with the inclusion of just one, if not all of the following hyperautomation technologies: low-code business rule-driven processes, robotic process automation (RPA), Optical Character Recognition (OCR) and artificial intelligence (AI), this time-usage and manual processes have become, in some cases, real-time decision events. This improved customer experience has enabled some institutions to prove the value of the investment and differentiate themselves from competitors by embracing the technology.
The banking sector is constantly exploring ways to withstand cyber attacks, prevent data leaks, detect fraud and ensure maximum security for operations. The implementation of technology enables more control over data and access to live data to make informed decisions. Many organizations have turned to artificial intelligence processes to more accurately detect fraudulent activity and low-code processes to inform and receive feedback from customers in these situations.
Further, errors and omissions can be minimized, saving time and resources. Time-consuming audits and reviews can be automated, enabling round-the-clock monitoring and verification of records to ensure high levels of transparency, trust and accountability.
User experience and customer support
Leveraging hyperautomation technology has enhanced onboarding and backend functionality that improves the customer experience. Front-end AI to streamline customer identification and verification, impersonate live workers through chatbots and voice assistants, deepen customer relationships and provide personalized insights and recommendations. A digital workforce can handle customer support around the clock and free up the human workforce to focus on relationship building and cognitive roles.
Robotic process automation (RPA) can also be leveraged to help provide a streamlined audit trail of transactions and requests to improve reporting accuracy and transparency. Hyperautomation technology enables institutions to support clients on a case-by-case basis with their highly flexible and customizable solutions.
Innovative solutions and compliance
The use of low-code technologies and Artificial Intelligence has enabled a significant increase in innovation in the financial services and banking industry. This technology has enabled increased integration of existing and secure customer data with new digital-first processes that can be created and introduced at very fast speeds, thanks to low-code options. During industry transitions, many of these processes need to focus on increasing compliance requirements. Low-code platforms have enabled organizations to quickly implement business rule-driven processes while enabling artificial intelligence to enforce them. They also encourage human intervention at any dispute or point where confidence in AI decisions may be required. These regulations begin to work together, giving organizations increased processing speed and transparency into every customer transaction and improving the customer experience.
As the use of technology shapes the digital transformation journey of banks and financial institutions, it has also begun to shape customer experience and expectations. Remote banking, shortened transaction processing times and increased security are all customer expectations stemming from the introduction of hyperautomation technology in the industry. We do not expect the rate of change to decrease anytime soon.
(The writer is Director of Services and Operations at Vuram)