What is banking automation? 

Banking automation is any task that was once performed by an in-person teller and which is now fully automated. At its most basic level, banking automation can look like an automatic coin counter, which functions to quickly and accurately count large amounts of coins without human intervention. This automation lets the teller focus on quicker, more high-profile tasks, and it provides the customer with a seamless, satisfying deposit interaction

At its most complex, banking automation can include a wide range of AI and cognitive computing technology to automate most tasks at a bank branch. Some Bank of America branches have become fully automated, with a single off-site banker available on FaceTime to respond to questions. These automation in banking examples demonstrate a few automation functions, but automation’s ability to change the way your bank does business is almost limitless.

Why are financial institutions looking to automation? 

The economy, and the banking sector along with it, are moving quickly toward a technology-focused model. The automation in banking industry standards is becoming more proliferate and more efficient every year. Institutions that embrace this change have an excellent chance to succeed, while those who insist on remaining in the analog age will be left behind. 

New exclusively online banks, FinTech companies, and other technology companies that offer financial services and products are taking up market shares of traditional banks and upending the banking landscape as we know it. This trend is by no means the end of legacy banks. Instead, they must adapt and push ahead of their competition.

While declining market shares are indeed driving some of the technological transition, banks should also remember that automation has massive implications for improving their customers’ experiences while improving cost efficiency. The transition to tech is not random. It is a function of a societal understanding that the best business models for both company and client include automation.

Personalize the customer experience 

Automation allows for a higher degree of personalization than could ever be provided by in-person models. Automated systems can easily send out surveys to collect as much data as possible about customers’ satisfaction with their banking experience. These systems can also collate and analyze the data, allowing decision-makers to make informed plans to improve the customer experience.

Data-driven decision making 

Financial institutions are also looking towards automation to make more informed, rigorous marketing decisions. Banks can use algorithms to track hidden client spending patterns, specific needs, and interests. They can then use this information to create and deliver effective marketing campaigns at precisely the right time. They can achieve faster results on test campaigns through automated data collection, allowing for a quicker and more efficient marketing strategy. 

Automated tools can detect patterns that humans might have missed and implement these results faster than humans can, giving marketing teams the free time to create the most innovative campaigns possible. These automation strategies work. In fact, data-driven marketing may be able to increase return on investment by 15-20% through personalization and efficiency improvements.

Reinforce cybersecurity and identity protection protocols 

Another significant benefit offered by automation services is enhanced cybersecurity with minimal extra investment. Cybersecurity is an essential part of today’s financial discourse, and the banks with leading cybersecurity measures will have a massive edge over the competition. Automation helps reinforce cybersecurity and identity protection protocols that are already in place while adding extra steps when necessary. 

Automated banks can freeze compromised accounts in seconds and fast-track manual steps to streamline fraud investigations, among other abilities. Cloud computing makes it easier than ever before to identify and analyze risks and offers a higher degree of scalability. This capability means that you can start with a small, priority group of clients and scale outwards as the cybersecurity landscape changes.

Empower their workforce 

There is a scarcity of digital, data, and cyber skills available in the market. Knowing this, companies need to make re-skilling an imperative. Re-skilling employees instead of recruiting new ones can deliver immediate value. It also enhances employee satisfaction through perceived job security. When you empower employees to take on additional high-skill roles instead of mundane tasks, employee satisfaction will increase, and their customer interactions will improve. Re-skilling your labour force is a sure-fire way to improve customer satisfaction with in-person interactions while creating a skilled, passionate workforce.

In addition to reducing costs and capturing efficiencies, augmentation and automation can free up time to refocus on high-value work such as innovation, customer relationships, and offering development. Newly re-skilled employees, especially ones who know the company inside and out through years of employment, can drive sustainable improvements in your bank from the inside.

How is banking automation transforming the financial services industry?

Financial services institutions could augment 48% of tasks with technology by 2025. This number means substantial economic gains for many different players in the financial sector. If banks, insurers, and capital marketing firms automate only 7-10% of tasks, they will generate additional cost savings of US $12 billion, US$7 billion, and Us$4 billion, respectively. Further automation could help banks, insurers, and capital markets companies generate gains of US$59 billion, US$37 billion, and US$21 billion, respectively.

What challenges are banks still facing?

Many legacy banks have been around for a long time. Structures and workflows exist in these banks built to optimize efficiency in an analog system, which do not lend themselves easily to digital change. These structures present challenges, but the banking automation process also offers a unique opportunity to rethink and restructure internal operations, cut out inefficiencies, and optimize systems to deal with future technology.

Furthermore, banks face a unique challenge in that one internal process can touch multiple lines of business. It is essential to implement automation solutions when the process connects different business systems, units, and tools. In this way, you can be sure to streamline instead of segment processes through automation.

Another critical challenge to consider is customer satisfaction. While automation can improve banking efficiency, provide on-demand answers to questions, and convenient mobile help, many customers will be averse to change. Furthermore, as with any significant restructuring, there are bound to be some growing pains wherein unexpected friction points appear. As teams redesign the banking process, they must have clear goals and avenues to receive and implement customer feedback to minimize friction points.

Banks may also find that as they automate more processes, employee satisfaction may decline with their perceived job security. Banks must make it clear to their employees from the start that automation does not necessarily mean decreased hiring. Instead, automation takes care of the simple, repetitive tasks that employees find the most mundane and empowers them to use all their time to deal with complex, high-profile cases.


5 Reasons why you need to add automation to your bank

Real-time data processing 

Banks are subject to an ever-growing number of regulations, risk management policies, trade monitoring changes, and cash management scrutiny. Even the most highly skilled employees are bound to make errors with this level of data, but regulations leave little room for mistakes. Automation is a phenomenal way to keep track of large amounts of data on contracts, cash flow, trade, and risk management while ensuring your institution complies with all the necessary regulations. Even better, automated systems perform these functions in real-time, so you will never have to rush to meet reporting deadlines.

Greater Efficiency 

Automated systems can perform the work of several employees almost instantaneously, and a sound system can complete the job with almost zero errors. A human worker cannot match this fast and effective processing service. Today’s customers want service fast, and they are not patient with human error. That is why automated services will improve customer satisfaction, all while making internal operations more efficient.

Cost Savings 

While making your operations more efficient, automation for banking also saves significant quantities of money. Automated systems perform the work of several human employees and cost a fraction of the price to operate. An initial investment in automation technology and internal restructuring has a high return on investment. Once you set up the technology, the only costs you will incur are tech support and subscription renewal.

Better Customer Experiences 

We know that customers value a fast and efficient banking experience, but banking automation can take the customer experience much further than that.

Automated chatbot technology means that customers can access their branch 24/7 from anywhere in the world to receive a personalized service experience. Banking chatbots can perform a lot of the same functions as human tellers. They can also save all the chat information to personalize and improve the customer experience for the next interaction. 

Chatbots reduce wait time in long queues, one of the cornerstones of an excellent modern customer experience. They also reduce time spent transferring from one department to another because they can collect enough data from their automated interaction to transfer the client directly to the person best equipped to solve their problem. Customers also value the ability to interact on their preferred platform, be that a phone call, SMS, email, or social media. Chatbots can save these preferences and perform banking interactions with customers right where they are most comfortable.

New Working Areas

When banks offload their more straightforward tasks to automated technology, they can use their extra financial and human resources to expand into new working areas. Departments like innovation and marketing can develop ground-breaking new ways to do banking when the institution is not stuck in a rut of routine transactions every day. Your bank can spend more time expanding into other markets, designing more efficient solutions, and running more comprehensive studies on customer experience and how to improve it

When you can stop focusing on the day-to-day, you can turn to the future instead. This automation model will allow you to become the disruptor instead of the disrupted. Once you can focus entirely on the future, you will find that it is ever-easier to operate a sustainable, cost-efficient institution where both customers and employees are satisfied.

How to Use Banking Automation to Improve the Customer Experience?

Ease of Use 

Banking can be a confusing, cloudy experience for clients. Especially today, when fewer people than ever visit branches in-person to receive step-by-step support, it is crucial that your bank offers the most comprehensive, user-friendly mobile experience possible. Chatbots in banking can provide customers with immediate feedback on transactions, provide support while setting up an account, and rapidly answer any questions that arise at any time of day. 

Banks should not expect all their clients to be tech geniuses to use mobile banking, and they should also not need to hire armies of support staff. When their automated systems provide a satisfying, user-friendly experience, banks can sit back and know that their clients are supported, all without much human intervention.

Faster customer support 

Both the speed at which you initially respond to the client and the total time it takes to resolve their issue are significant factors influencing the customer experience. Clients do not want to spend hours waiting for a response. Automated banking systems can significantly reduce wait times because they respond almost immediately to initial messages and quickly answer up to 90% of questions. Clients can also expect that their bank will resolve complex problems more quickly because agents are free to respond immediately to high-profile issues when chatbots take over the more straightforward cases. In this way, chatbots can speed up Time To Resolution of all client questions, no matter how big or small.

Increase user engagement 

Now that clients do not have to travel to an in-person branch to engage with your bank, opportunities to increase engagement abound. Each of these engagements is an opportunity to improve client satisfaction, inform them about investment or account options, and collect feedback to improve the client experience. These engagements improve your bottom line both quickly through increased marketing opportunities and sustainably through client loyalty and longevity.

Automation can increase user engagement by sending out surveys to collect feedback after touchpoints or specific times throughout the year, segmenting clients based on account type and personalizing their offers, and following up with clients after support interactions. This level of user engagement is not possible at scale without automated systems. Now, automation can increase user engagement without letting anyone slip through the cracks.



Benefits of Banking Automation 

      • More secure systems
      • Shorter wait times
      • Personalized customer experience
      • More time to focus on high-profile interactions
      • More skilled (and satisfied) employees
      • More efficient work than could be performed by humans
      • Fewer mistakes, more data
      • Better customer experience

Why do you need a chatbot? 

By 2022, corporations will automate 90% of interactions using chatbots. The enterprises that drive this change will be better situated than those who adapt it reflexively. But more importantly, your bank needs a chatbot because they work. They automate simple interactions, freeing your live agents to respond to high-profile cases. They can respond at all hours of the day, and clients do not need to travel to an in-person branch or wait in long phone queues to receive personalized help. 

For these and many other reasons, the demand for mobile banking is increasing. 91% of users have favorable outcomes with mobile banking, and 24/7 available chatbots offer users immediate support to their urgent problems. More customers than ever before prefer messaging to a phone call. Banks that understand and react to changing customer preferences will win every time. In this case, the direction is clear: chatbots are the best solution to automate your branches and enhance customer satisfaction while improving your bottom line.