The future of banking uses Intelligent Automation (IA)

| minute read

Banks are facing unprecedented challenges such as increasing customer expectations, the emergence of new fintech competitors, and growing regulatory pressure (Basel IV, DORA, ESAP, CBDC, ESG). To remain relevant and profitable in this new environment, banks must transform their operations through intelligent automation.

Intelligent Automation (IA) uses artificial intelligence, machine learning, and process automation to automate repetitive tasks, derive insights from data and improve efficiency. When integrated into a bank’s strategy and operations, IA can bring tangible benefits:

  • Customer experience: IA can power virtual assistants, chatbots, and robot-advisors to provide 24/7 customer service and personalised recommendations. Customers, especially millennials and Generation Z, increasingly expect self-service options and on-demand assistance.
  • Risk management: IA technologies like machine learning can analyse massive volumes of data to detect fraud patterns, monitor transactions for suspicious activities and predict future risks. This can significantly enhance a bank’s ability to manage risks and comply with regulations.
  • Cost reduction: Process automation can automate back-office tasks like data entry, payment processing, and account reconciliation. This reduces HR and logistics costs while improving accuracy and speed. Studies show that IA can reduce banks’ operating costs by 20 to 30%.
  • Insights and innovation: IA and machine learning can generate actionable insights from customer data, market trends, and business operations. This helps banks develop new products, identify growth opportunities, and make better strategic decisions.
  • Staff productivity increase: Rather than replacing jobs, IA can enhance the productivity of bank employees by automating repetitive tasks and providing data-driven insights. This frees up staff to focus on higher-value activities like customer service and product development.

Although the transition to IA is a challenge, the benefits are too significant for banks to ignore. Leaders must develop an IA strategy that identifies automation opportunities, invests in necessary technologies, and trains employees for new roles. In the digital age, an IA-driven approach will be essential for banks to improve efficiency, proactively manage risks and develop new revenue sources.

The board of directors plays an important oversight role in ensuring that the bank’s management develops and implements a comprehensive IA strategy. The CEO, CIO, CFO, COO, CSO, and risk manager must work together to integrate IA into the bank’s culture, processes and systems responsibly, considering risks, costs and opportunities. With the right vision, leadership, and execution, intelligent automation can transform your bank into a future-ready institution that offers more value to customers, employees, and shareholders.

In conclusion, becoming an IA-first bank will require changes throughout the organisation, from strategy and vision to processes, skills, culture, and governance. These recommendations provide a starting point to guide each leader’s role in the bank’s IA transformation journey.

The future of banking lies in the strategic use of artificial intelligence advancements. To do this, we recommend launching a Proof of Concept (POC) process. A POC is a small-scale feasibility demonstration of a method or idea that verifies whether the concept is technically, economically and commercially viable. Sopra Steria consultants are well-versed in this methodology and well-positioned to support banking institutions' digital transformation.

 

 

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