The banking sector has been undergoing significant changes for some time, but now the digital transformation trend is quite disruptive. Consumer demands and requirements have changed drastically after the pandemic. Everything needs to be easily accessible, especially at the touch of mobile phones, including hardcore banking services. In fact, Insider Intelligence reports that approximately 89% of customers prefer to use mobile banking channels, with 70% using mobile banking as their primary way of accessing their accounts.
Earlier digital banking involved only limited online banking services, but now with the high demand from customers, intelligent automation solutions in BFSI can highly improve the customer-centric approach. That involves seamless access to all-in-all digital banking services, such as efficient methods of accessing banking records and completing financial transactions digitally. One such intelligent automation solution is a digital co-worker.
Technology is a game-changer
Banks need to be agile to meet the sudden changes in workforce shortages and demands. Fintech companies leverage technology to accelerate process timelines in loan processing, lending, and other areas while staying agile. This has increased the customer expectations from BFSI (Banking, Financial Services, and Insurance) organizations, and the need of the hour is for them to keep up with the trend. Banks must also provide innovative solutions while ensuring regulatory compliance to protect customer data. The digital transformation journey requires striking a balance between leveraging technological advancements to enhance customer experiences and adhering to stringent security and privacy regulations.
Burgeoning manual processes
Several crucial banking processes, such as KYC (Know Your Customer), loan processing, and credit cards, involve a lot of manual effort and documentation. Again, each step is crucial towards identifying the customer, verifying their identity, assessing their risk, and monitoring their financial activities. When it comes to loan disbursal, banks need to verify documents in detail, which is imperative and unavoidable for the bank and delays the entire process. In contrast, Fintech companies leverage AI and data analytics to do the needful in minutes, speeding up the process and changing the game entirely.
What is the next best solution?
The BFSI sector, which is already burdened with a heavy workload and has an enormous workforce crunch, also faces volatile market conditions. Additionally, it faces pressure to meet the customer’s high expectations. So how can the top financial institutions sail through this situation? The only solution is to adopt technology to augment their workforce, get work done smoothly, and take the business ahead. Here come AI-enabled Digital workers that can transform businesses and help them achieve their goals.
Digital co-workers to the rescue
Being a seamless blend of Artificial Intelligence, Cognitive automation, Machine Learning, RPA, and Analytics, Digital co-workers ensure seamless processes from scratch to finish. Contrary to RPA or Robotic Process Automation, which can mainly automate simple workflows by following the rules and data fed into them, digital workers are intelligent and can perform as the next employee carrying out end-to-end tasks efficiently. Let us look at the following real-time scenarios that suit digital workers.
Tara, the Accounts Receivable Specialist
Let us take the example of Tara, the Accounts Receivable Specialist, and a Digital worker. From receiving and verifying all incoming bank wires to maintaining databases and spreadsheets and updating information as and when required, Tara can handle it all. Not just that, Tara can communicate with clients/customers requesting payment and arrange payment methods. She can also instantly connect to the financial systems and create reports. Many of the areas handled by this digital worker Tara are usually prone to errors when performed solely by a human. Handling enormous transactions and being open to communicating with customers 24/7/365 days, there is a 3x increase in productivity and complete automation of all the receivables. Tara relieves human employees from tremendous work pressure dealing with complex, error-prone work and augments their productivity. With a human-in-the-loop, digital workers like Tara can be the answer to the enormous workforce crunch.
Adeline, insurance underwriter
Adeline, an insurance underwriter is another digital employee who can review insurance applications for compliance and adherence, can assess the clients’ background information and financial status, liaise with specialists to gain information and opinions, draw up quotes for insurance premiums, and many more. With a human-in-loop and a blend of data and artificial intelligence, a digital worker like Adeline works seamlessly and reduces the BFSI organizations’ costs, lowers the origination time, and increases the transaction volume manifold.
Digital Co-workers can be customized
Digital workers like Tara and Adeline facilitate the business enormously. They come fully trained in their domains and deliver efficiently from the first day as they are pre-configured. BFSI firms do not need to spend their resources on hiring and training, and no software platform licensing costs are involved too. Rather than chatbots or bots performing rote tasks, BFSI organizations require digital co-workers who can augment the processes by performing full-scale roles. Enterprises can also get custom digital workers specific to the use case who can handle a variety of functions built for them.
5 Reasons why you need Digital Co-workers in BFSI
Let us consider the reasons why Banking, Finance, and Insurance organizations need to have Digital workers.
- Digital workers in BFSI can handle complexity in the work process.
As they come pre-configured, they are capable of handling complex workflows from their first day. Constantly learning and leveraging from the inputs provided, Digital co-workers can deal with time-sensitive inputs, and deliver fast. Manually, executing complex workflows would require an army of employees and that would still have room for errors. Whereas a digital co-worker with this blend of automation, AI, machine learning, and Intelligent Document Processing (IDP) capabilities, can infer long-form documents and handle complexity with ease.
- Digital workers save money
Even with well-established organizations, macroeconomic factors such as looming recession, chaotic global events, post-pandemic effects, and many more pose a big question regarding the organization’s financial growth. The process of digital transformation becomes crucial in navigating these challenges. Having digital workers who augment the employees help the organization very well in cost savings.
They reduce the cost of operations significantly. Costs which incur from scouting for talent, recruiting them, training them, the wait for the newly hired employees to function independently and deliver accurately and productively, and the cost of any human error on these complex platforms can be very expensive. Add to these the cost of employee attrition, burn-out, and lack of motivation to deliver, and the cost to the business becomes too high. Having digital workers will save money for the BFSI organization in the right ways. Further, they take little time to get started or involve platform licensing costs.
- Free employees from burn-out
Among one of the tasks of digital workers is to do repetitive and tedious tasks. Being a software solution, it is okay to do such tasks over and over again. On the other hand, any human employee would find the work tedious over a period of time. That would lead to disengagement, room for errors, and eventually employee burnout. Employees can focus on the exceptions rather than the regular use cases, where they can use the intrinsic talent of thinking and problem-solving rather than doing monotonous, repetitive tasks. Especially in BFSI organizations, where the sheer number of data handled is enormous, digital employees can be the savior.
- Digital workers support compliance
Financial institutions must be very secure and should be able to protect information from any risks and threats. All BFSI firms must abide by the existing rules and regulations. Digital workers in BFSI can work towards risk observance and financial directives. They can be up-to-date on the latest rules and guidelines concerning compliance. Apart from this, digital co-worker works 24/7 to detect and rule out even minor threats to the organization. They can reduce human errors and the need for further quality control. By reducing the increasing compliance burden of financial institutions, Digital co-workers effectively support compliance cost-effectively.
- Increases efficiency of the organization
When digital workers reduce processing time, increase productivity many folds, do not make errors, boost employee morale by freeing them from repetitive and tedious tasks, and augment the entire work processes, it boosts the organization’s overall efficiency. They can deliver much more with the same number of employees, and that too far more efficiently while retaining and attracting talent.
Thus, digital workers can be particularly valuable in the context of digital transformation in banking and financial services organizations. With their help, organizations can scale and grow their business, handle the ever-increasing volume, and accomplish much more. Working side-by-side with human colleagues, digital co-workers bring their expertise as fully trained domain experts and contribute to productivity as soon as they join the team. They will play a critical role in shaping how BFSI firms grow and become future-ready in the digital transformation era.
DigitalClerx
Saxon’s DigitalClerx is transformative for BFSI enterprises. Some examples of digital workers include KYC analysts, customer support analysts, invoice processing executives, and any custom roles that you require with a human in the loop and in control of the process.
Are you looking forward to being future-ready? Check out DigitalClerx from Saxon AI now. Request for a demo.
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