4 Hyper Automation Benefits in Banking

Firas Ghunaim
January 2, 2022
4 Hyper Automation Benefits in Banking

What Exactly Is Hyper Automation?

The term "hyper automation" refers to the complete automation of corporate and consumer activities. It accomplishes this through a sophisticated ecosystem of operational and customer-facing digital solutions that seek to exploit the flexibility and scalability of current IT infrastructure, freeing up employees to be creative in satisfying consumers outside of stated procedures.

The automated business, in conjunction with agile frameworks, enables better-informed decision making by generating a more comprehensive data picture throughout the organization. Without getting too technical, robotic process automation (RPA) is being improved and polished by technologies such as artificial intelligence (AI), natural language processing (NLP), process mining, advanced analytics, and others to cut costs, maintain accuracy, and accelerate operations.

Hyper Automation and Banking

Banks that did not have the opportunity to start as a digitally native organization have created complicated systems of legacy technologies fastened upon an operational structure designed when they were a telephonic or branch network bank. With new entrants entering the market with cloud infrastructure and a mobile-first, digital offering, the battle for market share has heated up. This is what makes automation such an appealing proposition: every potential to reduce operating expenses would be embraced in order to achieve higher profitability.

Hyper-automation has the potential to boost workers' abilities while decreasing operational expenses and human error, from automating onboarding processes in loans to enhancing data quality and utility for better decision making.

The Benefits of Hyper Automation

Integration

Hyper automation can readily make sense of the whole picture in organizations with complex ecosystems of operations and older systems. As a result, employees are better equipped to make more informed judgments. With increased regulation, technologies may provide continuous monitoring, help risk assessment, and assure compliance.

Productivity

Hyper automation can handle time-consuming, repetitive tasks. This is a win-win situation since it increases production with less resources while also engaging people in more varied and fascinating work.

Flexibility

Hyper automation makes use of a plethora of automation methods, allowing firms to advance beyond the constraints imposed by any particular methodology. This means that solutions may be scaled and improved in terms of total operational flexibility.

Demonstrable ROI

Not to mention, hyper-automation is accountable for increasing income while decreasing expenditures. With strong analytical capabilities, a company can optimize resources and benchmark KPIs. Similarly, with less human and manual involvement, expensive mistakes may be eliminated.

Guide: Key Enablers of Financial Services Digital Transformation

Automation vs Hyper Automation

With your mind racing over the possibilities for these benefits in your organization, you may have a fair query. What's the difference between hyper and the automation we already have in place in our company?

Tools and Technologies Work Together

Because of its solitary nature, simple automation capabilities are limited. To solve increasingly complicated issues, hyper-automation combines various areas of ML, software, and automation technologies.

AdHoc vs Integrated

Hyper automation acts as a glue, connecting many platforms, systems, and technologies. Simple automation is typically limited to a single platform or process, which, if legacy, is most likely only a patch over an existing leaky machine.

AI & ML

Simple automation techniques, such as RPA, do not make use of more complex and emerging technologies, like AI, to improve data modeling and decision-making skills.

Narrow vs Large

Both methods aim to facilitate more flexible corporate operations and consumer experiences. However, there is a wider notion at work in hyper-automation, which is the push toward more scalable, fluid, and agile enterprises.

Banking Automation Use Cases

Let's take a look at how automation can improve banking experiences:

Regulatory Reporting

According to Accenture's 2016 compliance risk research, 73% of respondents believe RPA will be a significant facilitator of compliance in the next three years. Since then, automation has been used infrequently. However, if the regulatory environment gets more complicated, isolated RPAs may become less helpful. Complete automation, as offered by hyper-automation, will need a sophisticated, multi-year deployment as well as cultural phase modifications, but it will be critical to improving risk and compliance.

Lending

Even in 2021, lending processes might be lengthy and laborious. There are several roadblocks, ranging from credit checks to employment verification, that affect response times. Automation technology can collect or approve all essential loan data in seconds, confirming consumers from different sources, with simplicity.

Mortgage applications, for example, might take up to 50 days to be approved. Automation, in conjunction with upcoming technologies such as blockchain, might be used to automatically check customer data from different sources or minimize attrition from consumers removing applications owing to small errors on forms that caused delays.

Back-Office

New technology is frequently applied to customer-facing procedures initially in order to wow the market. Back-end procedures, on the other hand, are ideal for automation. This is due to the massive amount of records and paperwork that many institutions continue to accumulate, even in the digital era.

Retail banks, on average, have 300-800 procedures, all of which may be enhanced using business process management (BPM) tools that decrease human error or inefficiencies that negatively impact the client experience. The point here, though, is not to apply a bandage to something that is no longer fit for purpose.

Sales & Distribution

The retail outlets of the future are in need of a facelift. It is anticipated that a move from contact centers to customer care platforms improved by intelligent routing offered by automation would take place. Similarly, API-enabled distribution via partner platforms and banking as a service (BaaS). All of this is empowering frontline personnel to use their creativity and enthusiasm for meeting the requirements of customers.

The Digitization of Banking

According to Deloitte, the post-pandemic bank will be very different from the one that went in. They predict that banks will need to continue to focus on enhancing the digitalisation of their operations, being adaptable to new business models, and (most crucially) putting consumers at the center of their digital strategy.

Customers have grown accustomed to receiving immediate action, engagement, and information from brands, and as a result, trends such as banking as a service (BaaS), the rapid proliferation of fintech solutions, and regtech innovations suggest that the time has come to consider the potential for hyper-automation.

However, if there's one thing we've learned in the previous year, it's that people still want to be... well, human. As robots take on increasing responsibilities in day-to-day operations, banks must ensure that humans remain at the center of their strategy.

Sitech has helped financial institutions across the MENA region digitize their financial products and services with their customers at the center of their transformation strategy. We can help you kickstart your own digitization journey through tailored custom software design and development solutions.

Contact us today for a free consultation.

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