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Finance

Why Process Automation is the key to unlocking potential in the finance industry

photo of man typing on laptop and sitting at the table while looking at the papers of SBI 302782064 - Global Banking | Finance

146 - Global Banking | FinanceBy Xanthe Bennett, Head of Business Solutions, Expleo

The finance industry is experiencing its biggest disruption in decades. With the rise of FinTechs, fast-changing customer demands and a global pandemic catapulting the world of banking online; Financial Institutions (FI’s) today need to move quickly and purposefully to survive.

Over the past few years, we have seen banks and FI’s quietly adopting Process Automation (PA) as a way of gaining efficiencies, improving team morale and reaping cost savings that will allow them to remain competitive into the future. A recent research report by Expleo found that by 2024, over 75% of organisations will implement some level of automation across multiple processes to drive higher levels of process optimisation and free up operational cash.

In the competitive finance industry, PA may be the answer to ‘having your pound and spending it’ by improving the productivity and skills of teams, whilst making significant cost savings across the organisation.

Evolving to meet customer demands

Traditionally, customers had no option other than to travel to the nearest bank to pay off their bills, withdraw money or deposit savings – and it was widely accepted that these things would take days, even weeks, to process. In today’s connected world, with digital banking, chatbots and online payments made available at the touch of a button, FI’s are far more at the mercy of consumer demands and if they don’t adapt, they may be at risk of collapse.

Using Process Automation, we can train computers to automatically take on a range of customer-facing processes, such as receiving and distributing online enquiries, gaining customer feedback, and even selling relevant products and add-ons to the appropriate audiences. The capabilities of technology today mean that these processes can be carried out quickly and seamlessly, without the risk of human error – something that is increasingly likely as our workdays become longer, and workloads become larger. And in a competitive space where it’s easier than ever for customers to switch banks, it’s important that their experience is smooth and convenient at all times. This doesn’t mean that human employees should be disregarded – it simply means that these teams can be freed up to focus on the value-adding tasks which require more of a human touch.

In addition to improving the customer experience journey, computers can also be programmed to collect data and feedback at different customer-facing touchpoints. This can be extremely valuable in establishing trends, and importantly predicting how those customers might behave in the future. Currently, predictive analytics within the finance industry is in a relatively early stage, with FinTechs and online banks leading the way in implementing the technology thus far. However, as we see the landscape change, and with Covid-19 acting as a catalyst for digital change, this will become more important for all FI’s to remain relevant and competitive.

Driving productivity – take your people with you

In an industry where retention can be challenging, it is critical to keep employees happy and engaged. One of the main benefits of automating processes is that over-stretched employees can be relieved of the mundane tasks that have traditionally taken up so much of their time. They can have more hours in the day to focus on high value functions such as creative problem solving, strategic planning and evaluation, which tend to be more fulfilling and promote higher job satisfaction. The concept of ‘working smarter, not harder’ is not new – but the way in which we can do this is becoming more sophisticated with PA.

It all sounds good in theory – but what about in practice? In fact, Expleo’s recent research report found that up to 50% of Process Automation programmes are found to fail on their first attempt – not because of technology issues, but because of a struggle to adapt to new challenges and novel ways of working.

As with any widespread organisational change, success is dependent on the people who are driving it. Despite the image we might be fed from Hollywood of robots taking over the world, these technologies are still very much reliant on direction from humans, and if they don’t have the appropriate knowledge, it won’t work.

It is therefore essential that the change is managed effectively. Companies who are change-resistant or don’t have the resources to manage the transformation might look to onboard a third-party, who can help integrate the new operating models with existing workflows and processes, and can ensure employees are brought on board from the beginning.

Building a digital workforce

The global pandemic has highlighted a digital skills shortage across the globe, an issue which has significantly impacted the finance industry. A recent study by Visier found that 84% of HR leaders in UK financial services companies say their organisation is facing a skills crisis, which may affect their business transformation plans.

This skills gap can be detrimental to both the company, whose teams may be underqualified to perform their role effectively, and to the employees who may not be receiving the support needed to fulfil their potential. By utilising process automation within the business, time and resources can be freed up to invest in reskilling and upskilling the workforce. This means that these forward-thinking companies get the upper hand in building out stronger teams who are more digitally resilient and adaptable to change – so when external disruptions happen, they are far better prepared.

The digital skills gap has also highlighted a tug-o-war which has been emerging between traditional banks and FinTechs for skilled resources. With a competitive talent market, individuals now have the power to decide who they want to work for; be it a young, digitally present FinTech, or a reputable, well-know traditional bank. Having the time and resources to spend on training and upskilling will be a key attraction to jobseekers in this industry in the future – and could be make or break in securing a star candidate into the company.

With around 80% of finance leaders having implemented or planning to implement RPA, according to Gartner, those who fail to do so risk being left behind in developing an agile digital workforce which optimises human intervention for maximum impact. And in today’s highly challenging global business environment and amid a backdrop of economic uncertainty, it’s now or never for financial institutions to begin their Process Automation journey if they wish to achieve their desired success.

Global Banking & Finance Review

 

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