Empowering BFSI with Workflow for Compliance and Efficiency
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Technology has made inroads into every aspect of our lives, blurring the lines between human actions and technology. The disruption being experienced by the finance industry is just one example.
With the introduction of fintech (finance tech), financial services suddenly have access to superior efficiency and greater innovation. Traditional banking services need to work that much harder and faster to adjust and retain their hold on their operations. Innovations like the gig economy, cryptocurrency, and blockchain are further pushing the industry towards newer, unchartered territories.
Customers too are demonstrating a rapid preference for digital banking, expecting instant service for their needs. Yes, banks have launched wide-reaching digital banking services; however, the modern customer not just expects, but demands, services such as omnichannel support, chatbots, and uniquely customized experiences. The finance industry is ramping up its efforts, but end-to-end digital transformation is still a few paces away, especially in back and middle office departments.
Digital Banking Needs a New Transformation
Operational efficiency in banking is defined as how smoothly and efficiently the business runs.
To keep pace with the rapid changes in the world, the finance industry must push its digitization program. This means automating manual processes, bringing visibility to end-to-end operations, and enhancing the overall flow of work. This transformation will not just help banks provide better user experiences but will also improve ROI.
Workflow automation for BFSI is a significant driver of enabling this digital transformation. It has the potential to eliminate major operational bottlenecks and can streamline most banking operations, leading to greater efficiency. Automation is particularly beneficial in replacing human efforts in repetitive end-to-end processes, like data entry, customer support, and back-office work. With faster turnaround times, it is helping banks optimize their resources and improve overall customer experience.
According to a report by Gartner, nearly 80% of finance leaders have implemented or plan to implement process automation to catch up with this evolving landscape. However, the transformation, which was accelerated during the pandemic, comes with its own set of operational and regulatory challenges.
Digital Transformation: Unlocking its Full Potential
A 2021 McKinsey study showed that when banks made the shift from manual to automation, it was discovered that over 70% of applications were paper-based, of which 30-40% contained errors. Such errors have a massive impact on profits and operational performance and lead to customer dissatisfaction.
For banks to reach their full operational and workforce potential, they need assistance that they can get from tools like workflow automation software and platforms. These ensure that financial institutions can adhere to regulatory frameworks, automate compliance-related processes, and reduce the risk of non-compliance, thereby meeting their efficiency goals
How Workflow Automation is Empowering Financial Organizations?
Workflow automation can assist financial organizations in numerous ways and help them meet compliance requirements and high levels of efficiency.
Speed Up Loan and Claim Processing
Processes, like loan approvals, underwriting, and claims can take several days to up many weeks when the process is manual. Credit checks, pre-approvals, and employment verification are part of this process. Furthermore, human errors can creep in and delay the process even more. Automation can speed up the process and optimize efficiency. Algorithm-based systems can reduce delays and errors by collecting, verifying, and updating information across systems and processes quickly.
Streamline Report Generation
It is mandatory for banks to regularly audit processes and share compliance reports with the board and shareholders. Transparency is a critical aspect of this process and plays an important role in maintaining the bank’s reputation. Automation helps the bank streamline this process by collecting and collating accurate, real-time data from multiple sources, formatting and verifying it, and then sharing it with the relevant departments and stakeholders to publish audit-ready logs and reports.
Manage Deadlines and Meet SLAs
One of the biggest challenges in the banking sector is keeping track of customer queries and complaints and providing timely service. Missing the deadline can mean losing a customer’s trust. This usually happens when communication is lost in the overload of emails and task allocation suffers because of overlooked, forgotten, or deleted emails. Automation can build an agile ticket and case management system that can monitor requests and dynamically assign tasks based on urgency and workload, thus preventing SLA breaches.
Enhance Operational Performance and Reduce Risks
In an age where banks are required to do more with less, automated workflows can help improve efficiencies, reduce operational risks, and create optimal customer experience. By adopting new technologies, banks can reduce costs and make complex operations easier, generating greater value from existing resources. Furthermore, automated workflows ensure banks can manage regulatory, operational, cybersecurity, and other risks with greater effectiveness. The business resilience thus created can support the business in times of disruptive events that can hamper regular business processes.
Improve Compliance Adherence
The banking sector is required to adhere to many rules and regulations. Advanced analytics can take over these tasks seamlessly, thus enhancing productivity and leaving staff free to focus on more critical areas that require human intelligence and informed decision-making. Now, automated compliance in BFSI becomes simplified and error-free.
Reduce Human Error
The human aspect of any business opens it up to the possibility of errors, leading to customer dissatisfaction. Automated workflows can change that. By digitizing and automating operational processes, a bank can ensure seamless coordination between departments and improve performance. The automated workflow can follow a checklist, send reminders, and open up clear communication channels between teams, resulting in better customer delivery.
Leverage the Latest Workflow Automation
Done right, digital transformation has the potential to address operational and compliance challenges, while also making a significant difference to efficiency, agility, and resilience to operations. At ProHance, we have the capability to work with you on your automation challenges and provide an end-to-end workflow solution that can help you become more agile, resilient and meet your operational efficiency goals faster.
Talk with the experts at ProHance for Financial Workflow Management solutions that meet your exact needs. Reach out for a demo today.
