How can banks use automation successfully?

As well as many other challenges, banks faced a deluge of loan requests throughout the pandemic as individuals and businesses struggled with the effects of lockdowns and furloughs. In response, many banks looked for ways to increase their use of automation.

In many cases, banks' use of automation has been so successful that they are looking to expand their use of it (and many of those that were more hesitant are starting to see the benefits of automation technology).

However, any foray into automation must be done with a solid strategy in place. Why does the bank need to automate a particular service or process?

First, consider what automation can do for the bank and its customers

 1. Automation can improve the efficiency of back-office processes. Robotic process automation can match the output of hundreds of employees, which can end up saving the bank considerable time, resources and money when problem-solving or doing everyday administration.

2. Automation can improve customer experience. Virtual assistants and chatbots help take the pressure off customer service centres by answering simple queries and giving these specialists more time to help customers with more complicated concerns. Automated systems can also provide customer service agents with a detailed picture of the customer – drawn from data held across the bank – allowing them to offer a more personalised service (and help banks develop a more attractive product portfolio).

3. Increasing automation helps banks make the move to digital. Automation gives banks extra motivation to digitise unstructured data to ensure employees and systems have access to as much data as possible. By bringing all data together in one system, banks can continue to innovate and offer the secure, digital products that help them remain competitive.

4. Automation helps banks become more agile. Banks can respond more quickly to changing conditions and circumstances by increasing automation. For example, we saw the benefits of this during the earlier stages of the pandemic when automation helped banks streamline application processes for mortgage payment holidays and bounce-back business loans. Banks may find that they need this same level of efficiency again as the energy and cost-of-living crises begin to bite.

Banks also need to consider the potential challenges of pushing for greater automation

Automation isn't a silver bullet. These processes need active management – which is why it's crucial to establish a change management process from the outset.

It's also vital to have the right people and partners in place to support the bank as they adopt this new technology (and way of working). Sometimes these individuals and providers will be there to help the bank with one part of the project; on other occasions, it's better to partner with a specialist that can support the process over the long term.

Remember that digital transformation and increased reliance on automation require significant culture change. These projects need the full support and belief of the executive team, and banks need to ensure that they've created a clear internal communications and change management plan to inform employees of the benefits of these changes and smooth the way to full-scale adoption.

To summarise, banks that want to use automation successfully need to know what they want to achieve from automating a process. They need to have a clear strategy in place on how to deliver it (with an understanding of the challenges they may face and a plan for how to overcome them), and they need the right people, culture and partners in place to support their shift to an automated future.