Intelligent automation (IA) has been the buzzword across industries for several years now, be it financial services or retail or pharma, everyone wants a piece of the pie.
Can automation truly be described as disruptive? IA will change the way businesses conduct and improve processes, but will it shake the foundations of financial services as we know it.
What’s the harm?
Ignoring automation is a dangerous game. Banks ignoring the advantages of these technologies will be swallowed up by the world transforming around them.
“If an ideal level of automation were reached, then almost 50 percent of the FTEs in operations could be relieved of their current back-office tasks.” Reports Mckinsey & Company1
With this level of back-office innovation available, banks not adopting now are at a very real risk of becoming obsolete.
FinTechs and Automation
Legacy processes within financial services are currently under threat from FinTechs aiming to provide a more complete customer experience, all while making processes more streamlined on the back-end.
Intelligent Automation fits perfectly here, while it eliminates the need for repetitive simple tasks it also gathers useful data which financial institutions covet.
Forbes reported that: “In 2018 and over the next few years, we’re going to see a big trend moving towards automated financial decisions and actions. From bill autopays to automated savings to better overdraft protection tools, we’re going to see a lot of apps dedicated to helping people live a more automated financial life.”2
Moreover, automation drives a tech culture by removing menial tasks from FTEs. With this newly found tech focus, a business may begin to see more benefits for the customer, as well as a higher standard of performance among products.
A member of Forbes’ 30-under-30, Megan Caywood, Chief Tech Platform Officer at Starling Bank, said: “Having a tech-focus as a bank also enables many benefits, including being able to move and respond quickly to demands as we change our platform (sometimes multiple times a day!).”3
According to research and advisory company Gartner: “AI Will Create 2.3 Million Jobs in 2020, While Eliminating 1.8 Million”4
The advent of full-scale AI will eliminate many low to mid-level responsibilities, but will create a demand for highly-skilled, managerial and lower-level roles in new automation-related processes.
C-suite messages on this topic are clear, humans will always be required to do certain processes and innovate existing technologies.
Automation will change many things within banking, but disruptive it is not. It aims to augment processes, increase FTE value and most importantly streamline existing processes.