Blending automation in finance pays big dividends

Does anyone remember life before ATM machines? How about before online banking and asset transactions? Digitization has transformed the financial services industry for the better. Instead of putting tellers and investment customer service agents out of work, these two automation advancements enabled institutions to expand and capture more business by attracting a new young generation of computer-savvy customers. This was followed closely by cautious but increasingly enthusiastic older adults.

There is no question that banks and the financial services sector were early adopters of technology and that their investments have paid big dividends in cost savings and customer satisfaction. Now, the next wave of automation is knocking at the doors of business executives, but the opportunities may not be so easily identified. So, when does it make sense to replace manual labor and processes with automation?

In this blog series, we’ll examine some fundamental factors that can help you clarify when automation makes sense. The first important thing to remember from our two examples is that automation is not just about decreasing costs. Implemented intelligently, automation can spur tremendous efficiencies and innovation and reduce risk across a wide range of workflows and processes.

By automating mundane, repeatable transaction tasks, companies can reduce and even eliminate errors and free up human brainpower for more creative pursuits — and provide the all-important personal touch when and where it’s needed. Whether you are just starting or looking for expert advice, chances are you’ll find something to improve efficiency and please customers.

Today, even with all the computerized financial applications, many error-prone, manual tasks still remain in the back office. Ask these simple questions when evaluating processes and workflows:

· Are there basic tasks that could be accomplished with human intervention required only for exceptional cases?

· Are there repetitive, tedious and error-prone tasks that could be accomplished without human intervention or an exception-only basis?

· Are there manual workflows or processes that require multiple input of the same data in different forms or formats?

· Are there compliance-verification tasks that can be automated and reduce risks?

· Are there tasks that require figuring out complex patterns, such as potentially fraudulent transaction patterns or behaviors, that can be done by machines?

Don’t forget to take a bottom-up approach and actively seek for input from all levels of staff when searching for automation opportunities. Ask them what types of changes would reduce or simplify their workload, reduce errors and improve their work lives.

In the next blog, I’ll discuss the fine art of balancing automation with human interaction when redesigning banking and financial transaction processes.