The banking sector has been going digital for some time now, but the 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 now, including hardcore banking services. Around 89% of customers prefer to use mobile banking channels and 70% of customers use mobile banking as their primary way to access accounts according to Insider Intelligence. Earlier digital banking involved only limited online banking services, but now with the high demand from customers, digital co-workers in BFSI can 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.
Technology is a game-changer
Banks need to be agile to meet the sudden changes in workforce shortages and demands. Fin-tech companies, leverage technology to accelerate process timelines in loan processing, lending, and others 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. Alongside this, banks need to provide innovative solutions while ensuring regulatory compliance to protect customer data.
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, a process which is imperative and unavoidable for the bank, and it also delays the entire process. Whereas 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 manpower crunch faces volatile market conditions as well. To add to that it faces the pressure to meet the customer’s high expectations. So how can the top financial institutions sail through this situation? The only solution is adopting technology that will augment their workforce, get work done smoothly, and take the business ahead. Here comes AI-enabled Digital co-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 is mainly capable of automating work by following the rules and data fed into it, working with no variation, digital co-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 for Digital Co-workers.
Tara, the Accounts Receivable Specialist
Let us take the example of Tara, the Accounts Receivable Specialist, and a Digital Co-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 co-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 not only relieves human employees from tremendous work pressure dealing with complex error-prone work but also augments their productivity. With a human-in-the-loop, digital co-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 co-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 co-workers like Tara and Adeline facilitate the business enormously. They come fully trained in their domains and start delivering efficiently from the first day itself as they are pre-configured. BFSI organizations do not need to spend their resources on hiring, and training and there are no platform licensing costs 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 co-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 Co-workers.
- Digital Co-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 itself. 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, Intelligent Document Processing (IDP) capabilities, can infer long-form documents and handle complexity with ease.
- Digital co-workers save money
Even with well-established organisations, the macroeconomic factors such as looming recession, chaotic global events, post-pandemic effects and many more pose a big question when it comes to the financial growth of the organization. Having digital co-workers who augment the employees help the organization very well by saving money in many ways.
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, burnout, and lack of motivation to deliver, and the cost to the business becomes too high. Having digital co-workers will save money for the BFSI organization in the right ways. They do not take time to get started, nor do any platform licensing costs. Usually, they make the lives of human employees much easier with their augmentation and automation.
- Free employees from burn-out
Among one of the tasks of digital co-workers is to do repetitive and tedious tasks. It does not mind doing such tasks over and over again. Whereas any human employee would find the work boring and 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 solving problems rather than doing monotonous repetitive tasks. Especially in BFSI organizations, where the sheer number of data handled is enormous, digital employees can be the saviour.
- Digital co-workers support compliance
Financial institutions must be very secure and should be able to protect information from any risks and threats. All BFSI organizations must abide by rules and regulations that are existent. Digital co-workers in BFSI enabled with AI, automation, blockchain and more 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 workers effectively support compliance cost-effectively.
- Increases efficiency of the organization
When digital co-workers reduce processing time, increase speed and productivity many folds, do not make errors, save time and money, boosts employee morale by freeing them from repetitive and tedious tasks, augment the entire work processes, it results in boosting the overall efficiency of the organization. They can deliver much more with the same number of human employees and that too far more efficiently while retaining and attracting talent.
Thus, digital co-workers can be especially valuable when it comes to banking and financial services organizations. With their help, organizations can scale and grow their business, handle the ever-increasing volume, and much more. Working side-by-side with human colleagues, Digital co-workers are fully trained, domain experts, and productive as soon as they join. They are going to play a critical role in how the BFSI organizations grow and are future ready.
Saxon’s DigitalClerx is transformative for BFSI enterprises. Some examples include KYC analyst, customer support analyst, invoice processing executive, 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.