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SLOW BUT STEADY NO LONGER WINS THE RACE WHEN AUTOMATED BANKING IS THERE

Slow but steady no longer wins the race when automated banking is there

Automation is now being touted as the future of banking, and for good reason. To increase productivity, current systems include robotic process automation (RPA), artificial intelligence, machine learning, and sophisticated analytics. Please read the following SmartOSC article to learn more about automated banking.

What is automated banking?

SLOW BUT STEADY NO LONGER WINS THE RACE WHEN AUTOMATED BANKING IS THERE

Automated Banking Machine refers to a business where a machine allows customers access to banking services such as deposits, withdrawals, or account transfers, and does not refer to a machine that just allows cash withdrawals.

End-to-end service automation links people and processes, resulting in flexible integration. With it, banks may eliminate information silos by integrating their internal systems and databases. Employee decision-making is improved, and client issues are resolved more rapidly because of this extreme openness.

The back-end and hidden middle of automation

SLOW BUT STEADY NO LONGER WINS THE RACE WHEN AUTOMATED BANKING IS THERE

While it is clear that automated banking increases productivity, it also acts as a potent tool for redefining the connection that a bank has with both its clients and its workers: 

  • Efficiency in core banking via support for actions and transactions based on rules
  • Institutional risk management makes individual and entity-wide risk more visible.
  • Utilizing “people analytics” in HR and recruitment to improve talent management
  • Audit and compliance, including cutting-edge algorithms that identify holes and anticipate risk
  • Automation of services via “radical transparency” in the back- and middle-office processes

Many of these “automation fundamentals” are areas in which technologies such as artificial intelligence and machine learning are either ready to be applied in banks or have already been put there. 

SLOW BUT STEADY NO LONGER WINS THE RACE WHEN AUTOMATED BANKING IS THERE

Although banking clients are not privy to the workflows and how their day-to-day transactions are conducted, automated banking has taken a deep dive into these to develop efficiency. This is despite the fact that banking customers do not have access to this information.

In recent times, namely over the last five years, there has been a revival of interest in the use of artificial intelligence (AI) and machine learning (ML) technologies to improve the efficiency of check processing. This has made it possible to achieve real straight-through processing (STP), with reading rates higher than 99.5%.

Redefining the Bank’s Relationships with Customers

SLOW BUT STEADY NO LONGER WINS THE RACE WHEN AUTOMATED BANKING IS THERE

The “engagement layer” is where clients connect directly with the institution (and with personnel), and over the last ten years, banks have invested a lot of time and money in front-office and digital developments. 

Additionally, the COVID-19 epidemic, which brought with it strict safety regulations and a personnel crisis that affected the whole sector, made banks consider the following:

  • How to provide automated banking services that are comparable to those of digital-first rivals like Ally or Chime
  • How to implement improvements that seem like a long-term strategic improvement rather than a quick fix or cost-cutting measure
  • How to enhance the customer experience (CX) while more and more physical banks close or operate with fewer hours? (and customers generally want less physical contact)
  • How to deal with the anticipated after-pandemic personnel shortages at traditional brick-and-mortar banks
SLOW BUT STEADY NO LONGER WINS THE RACE WHEN AUTOMATED BANKING IS THERE

Banks must improve automated banking as more banking activities are moved online in order to make transactions easy and meet consumer expectations, whether or not a client chooses to visit a branch.

It’s time for automated banking to take a long, hard look at their internal procedures and upgrade their systems to match client expectations as 2022 draws to a close. As the article points out, this does not need to imply a complete redesign, but even the smallest adjustment will count.

If you need help keeping up with banking, get in touch with SmartOSC right now. Thanks to the knowledge of our employees, businesses can utilize machine learning to stay competitive and be ready for the future.

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