How has Automation in Financial and Banking Services Gained Importance?
The banking and finance industry has been growing at a quick pace in recent years due to the integration of technology. Intending to give competitive service to its trusted customers, there has been constant innovation in the segment. This has led to the discovery of automated services in the banking and finance industry that has taken the service to the next level. If you want to know the reason for the enhanced importance of automated services in banking services, please keep reading below.
What are the benefits of automation in banking services?
There will be different types of requests in the routine activities of the banking sector right from balance and account info, the status of the application, cheque clearance, and many others which have to be answered promptly. With automated services, there can be a quick turnaround time as there will be a reduction of human interventions. With the aid of the latest technologies like ML, AI, IOT, etc, automated services can even work to make smart decisions. One of the best examples is a chatbot that can know the customer’s concerns and give them prompt responses like a human. Also, since the banking segment is closely attached to the economy, it has to be meeting several compliance regulations. Automation aids in enhancing efficiency by improving productivity and guaranteeing compliance norms.
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This is another tedious process that needs taking out the customer data, verifying it, and processing the payment. This process is simplified with an automation process where digital copies are read and sent to the system. Automation will verify the data and process the payment without any hassles and wasting of time. If there are any issues, the concerned person will be notified accordingly.
Processing of Credit or Debit Cards:
In the previous times, processing of debit cards and especially credit cards would generally require more time especially in verifying the customer information. As approval would take longer, customers would be annoyed and dissatisfied with the bank service. But automation has eased the service by having sync in verifying the information such as necessary documents, background verifications, and many more. With faster moves, there can be faster processing of approvals as per the banking norms.
Similar to the processing of credit and debit cards, there will be a requirement for more time for traditional loan mortgage processing. There are multiple verification steps like repayment history, credit checks, verification of service, etc. Any slight mistake in the checks can create a huge delay in the process. Automation has been a savior in the process as it can help in speeding up all the tasks leading to a reduction of overall processing time.
Recognizing fraud activities:
While digital transformation has eased the overall banking process, it has also given room for fraudsters to commit nasty activities. Hence it becomes crucial for banks to validate all the transactions and detect if there is any fraud. Automation can aid in tracking all the transactions and notify if there is any fraudulent activity decreasing the delay in response. If there are any extreme cases, then automation can even avoid fraud by immediately stopping the transaction and blocking the account.
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Know Your Customer (KYC) is a compulsory process for all the banks carried out with each customer. Banks have to spend loads of time and resources in completing this process without fail. With the effort involved in the manual process, banks have been aided by automation for verifying customer information. As advanced automation technology has been highly genuine and accurate, there is no tension in accomplishing the process smoothly.
Updating general Ledger:
All banks must have their general ledger updated with information such as revenue, financial statements, liabilities, assets, costs, and many others that are involved in the preparation of financial statements. Since the public, media, and stakeholders will access the financial statements, it is considered a crucial public document that should be present in every bank. With such importance to the document, mistakes in the information can lead to a dent in the image of the bank.
To have the perfect financial statement, the bank has to accumulate data from different legacy systems and update them. It is a tedious job to accumulate, validate and ensure that the general ledger is prepared without any mistakes. Automation can perform successful integration from all kinds of legacy systems to showcase the data in the necessary format regardless of the format of the system. This will not only ensure that output is error-free but also decrease loads of time that is otherwise spent on handling.
Similar to all other industries, banks have to keep their reports ready to present their performance, especially to the stakeholders. With such high importance, banks cannot have any kinds of mistakes while preparing reports. Moreover, you will have the advantage of report creation in different formats as per the final requirement.
Banks consist of cases where some customers may want to close their accounts. The reasons may be different such as failure to update KYC information, necessary documents, or moving to another location where the bank is unavailable, and many more similar issues. Automation will help in tracking all the accounts and notify the customers to give necessary documents. Due to this, even processes like account closure becomes a fast and smooth activity both for banks and customers.
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Automation has highly simplified a wide range of bank processes that had traditionally slowed down the efficiency of bank employees. By efficiently adapting the automation technology in their process, banks have been able to highly negate the requirement for manual tasks, reducing overall time and resource. But it is important to have a reliable technology expert who can guide you on the right path to success. Hence, associate with a digital transformation expert like Brillmindz technologies who have more than a decade of expertise in developing user-friendly products in the banking niche.