How can Process Automation improve customer service in banking?

Banking and finance are full of repetitive tasks and automation potential. One example is customer onboarding. All the KYC, AML, and account setup work is a great example of automatable processes. Anything that involves bouncing between systems, entering data, querying databases, sending alerts, revisions, following up, etc. Most of them can be ~%100 automated. What does that mean for a financial institution? - Instead of a customer waiting a week → it could take hours/minutes - Instead of costly errors → less costs on rework - Compliance issues due to errors → subzero error rate. And the list goes on. It's the ultimate competitiveness hack in finance because there's very little differentiation. Customer service is the top factor.

Banking and finance are the core contributors to the process automation market. Of course, one of the domains with super-critical operations underway 24x7 globally, as it all deals with money and customer-expecting services in real time. It's essential to automate workflows and streamline processes for banking, such as KYC, AML, payments, cards, and many more.

The short answer is in lots of ways - as banking is full of routine tasks but DONT begin without understanding what is excellent service in the eyes of your customers and bank staff and then determine where automation can help or SHOULD help. It is easy to automate but quite often you should not. For example, I could automate a bank fraud reporting system but this is a key moment for an likely distressed and emotional customer and that needs a personal touch. Whereas, using conversational AI and RPA to upload some proof of person documents is a tick for automation. So work out what drives customer experience and ONLY THEN decide what to automate and not.

To try to address the broad question in less than 750 characters would be impossible, so let's focus on a real-world application. Take loan processing: traditionally, it's labor-intensive for the bank and even worse for the customer. Now, how can process automation impact that? Applications can be pre-screened, documents can be verified digitally, and decisions communicated swiftly among SO MANY OTHER THINGS. This cuts down on processing time but also improves the customer's experience by providing instant feedback. For banks, it means resource optimization and a competitive edge. The emphasis for banks SHOULD BE on leveraging automation to enhance BOTH the efficiency of their ops and the satisfaction of their customers.

1. 24x7 availabiliy- automation will help enable customers to access services outside the traditional hours 2. Self service options like online banking, paying bills, account balances n much more 3. Real time support and issues resolution 4. Improved security- password protections, multifactor authentication etc

Customer experience is driven by timeliness, accuracy and more importantly consistency, in service. Automation ensures consistency in service delivery, leading to improved customer satisfaction. It helps organizations deliver faster, more reliable, and cost-effective customer experiences.

Superior customer service is vital in a competitive banking sector. By employing process automation, banks can minimize errors and delays, thus enhancing customer satisfaction. This method also bolsters security and enforcement of set policies, improving customer trust. It aids in personalizing services using collected customer data, translating to a seamless, individualized customer experience. Furthermore, capabilities like Intelligent Document Processing, GenAI, and chatbots ensure round-the-clock, cross-channel support, leading to higher customer satisfaction and loyalty.

Process automation is crucial for customer service because it streamlines operations, reduces response times, and enhances the overall customer experience. By automating repetitive tasks such as ticket routing, data entry, and basic inquiries, businesses can allocate resources more efficiently, allowing human agents to focus on complex issues and providing personalized support. Automation also ensures consistency in service delivery, minimizes errors, and enables 24/7 availability, leading to higher customer satisfaction and loyalty.

The easiest way to answer this question is to imagine your own personal banking experience. - Did you find opening an account simple? - How about common tasks like transferring funds, setting up automatic payments, etc..? - Is it easy for you to get your account questions answered? These are just SOME of the simple questions we all internally ask ourselves when we work with any banking institution. Simply put...Process Automation gives banks THE ABILITY to provide their customers with a more seamless experience, which long term will provide greater overall customer satisfaction (because NO ONE PREFERS a more complicated experience).

Faster Transaction Processing: - Automation of routine and repetitive tasks, such as transaction processing and account updates, can significantly reduce the time it takes to complete customer requests. - Customers benefit from quicker and more efficient services, leading to increased satisfaction.

It's 2024, so it's hard to imagine a bank without some form of process automation. The challenge isn’t about adoption; it’s discerning WHAT to automate and WHY. I’ve seen numerous programs, started with enthusiasm, peter out with little discernible value, resulting in a collection of random automations without a clear strategy. Despite the plethora of resources on HOW to implement automation technologies like RPA, IDP, or CAI, the critical success factor often boils down to the WHY. Each automation initiative should be closely aligned with strategic goals, focusing on enhancing customer experience, operational efficiency, or fostering innovation, to not just automate but transform.

The implementation of automation is mostly the same across various domains, but there are specific crucial factors or points to consider in each domain. In the case of banking, for me, it's about data security and compliance. This is crucial for two reasons: first, to keep customer data safe and secure, as it deals with money and personal information; and second, to comply with local laws and regulatory governance frameworks, ensuring the sustainability of the banking business by building trust with both governing bodies and customers.

To implement process automation in a bank, it's crucial to first understand the organizational strategy. Depending on whether the focus is on operational excellence, customer intimacy, or innovative products, that becomes the initial guiding principle. Once the strategic path is chosen, identifying processes that support that strategy becomes a priority. Subsequently, there's a need for operational tactical prioritization, giving precedence to high-frequency processes, those consuming significant resources, and those carrying substantial risks in case of human errors. This dual strategic and operational tactical prioritization establishes a robust framework for the effective implementation of process automation.

Pode ajudar a melhorar o atendimento ao cliente, por exemplo, oferecendo respostas rápidas e personalizadas. Para implementá-la: 1. Identifique áreas para automação. 2. Escolha ferramentas adequadas. 3. Desenvolva e teste os sistemas. 4. Treine funcionários. 5. Monitore e otimize continuamente. resumidamente, é isso

In the context of process automation in banking, one crucial aspect to consider is the alignment of automation initiatives with strategic goals. While it's common to focus on the "how" of implementation, the "why" behind each initiative is often overlooked. Ensuring that each automation effort is closely tied to enhancing customer experience, operational efficiency, or fostering innovation is essential for long-term success and transformative impact.

The banking industry is highly regulated and data security is another big constraint to consider. Automating processes within this industry must necessarily keep in consideration those "limit" that could potentially lead to severe problems within the organization. Another challenge I faced in my experience is the amount of money that some processes manage; in those cases even the smallest exception or error can lead to potentially huge money loss.

Compliance and Regulatory Reporting: - Process Automation helps banks adhere to regulatory requirements by automating compliance checks and reporting. - Ensures that the bank stays compliant with industry regulations, reducing the risk of penalties and legal issues.

Challenges: 1. Delays in new initiatives due to multiple stakeholders and changing customer expectations. 2. High regulatory and compliance reporting requirements. 3. Complexity in integrating with Data Warehouses/Core systems. 4. Managing change and adapting to automation. 5. Knowledge scattered among individuals instead of a common repository. Best Practices: 1. Conduct a Time in Motion study. 2. Map current processes. 3. Identify key automation drivers. 4. Prioritize automation for quick turnaround. 5. Implement intelligent document processing. 6. Integrate people, processes, and platforms effectively. 7. Develop test cases for all business scenarios.

Some challenges - Process complexities - Staff knowledge on automation and level of acceptance - Quality of data and data cleansing - Compliance and security policies impacting in delivering optimal solutions Best practices - Data architecture and cleansing - Improved security and compliance (credential management, encryption etc.) - Process feasibility, assessment and prioritization tools and matrix - Build strong governance and controls - Adequate change management -Establish an operating model for automation (cross functional, Centre of Excellence etc.)

Reduced Manual Errors: - Automation minimizes the chances of human errors in data entry, transaction processing, and other routine tasks. - Customers benefit from increased accuracy and reliability in their banking interactions

In addition to the benefits mentioned in the text, process automation in the banking sector can also provide increased operational security by reducing vulnerabilities to fraud and ensuring compliance with regulatory standards. Furthermore, enhanced data analysis through automation can offer valuable insights into customer behavior, enabling personalized offerings and the creation of more effective marketing strategies. Automation also contributes to environmental sustainability by reducing paper and physical resource consumption, aligning with more eco-efficient practices in the banking sector.

The benefits of Process Automation are many; they may include - Quicker turnaround time, which is helpful for customer-facing processes - Capacity release to the BU, which the BU can use that capacity to focus on other activities - Reduction in errors, applicable in processes where mistakes can result in financial ramifications - Increase Employee satisfaction through automating mundane processes which can contribute to increasing the retention rate

Aside of all the benefits listed in the article there is one that hasn't been mentioned which in my experience has proven to be really important especially within organization subjected to extensive and detail legislation. This benefit is the increase in compliance. Automation is not subjected to any personal bias as oppose to human actions, therefore automating a process with legal outcomes ensures it won't be exposed to legal retaliation that could potentially lead to fines and legal actions with all the negatives impact that those might have (e.g. reputation, financial impacts, restrictions).

No setor bancário, onde o volume de dados e a interação com clientes são intensos, a automação pode agilizar operações rotineiras, como abertura de contas, processamento de transações e atendimento de consultas, reduzindo o tempo de espera e aumentando a eficiência. Isso libera os funcionários para focarem em tarefas de maior valor, melhorando a qualidade do serviço ao cliente. Esses benefícios não se limitam ao setor bancário; em qualquer indústria que lide com grandes volumes de operações e clientes, a automação pode elevar o atendimento ao cliente, otimizando processos e personalizando a experiência.

In Banking industries, process automation not only depends on the infrastructure of the bank but also depends on the government's acceptance. For developing countries, if a bank has high-tech infrastructure to establish best automation, it won't be able to execute due to the limitations set by the Government or Central Bank. First of all, paper based workflow should be replaced by electronic methods. Most of the cases, service delays because of the paper based validation process. eSign e.g. DocuSign still not widely accepted. Yes, I agree eSign has its own drawback and security concerns but banks may work closely with these organizations how such limitations can be overcomed. After all govt's support is crucial to ease the path.

In addition to the above aspects, banks should also consider factors such as regulatory changes, technological advancements, customer preferences, and market trends when implementing process automation. Continuous monitoring, evaluation, and adaptation are essential to ensure that automation initiatives remain aligned with business goals and customer needs over time.