The extraordinary power of automation in banking

The extraordinary power of automation in banking

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Automation in banking is growing exponentially, to increase throughput and free people to focus on intellectual tasks. To take advantage of the automation era, banks must take strategic steps and move fast.

Automation has become the focus of many banks around the world, and we have been fortunate enough to be helping banks go through this transformation. Latest automation tools like UiPath, Blueprism, Automation Anywhere have enabled the next wave of productive, cost-saving and efficient way of running banks. The results have been staggering so far, and our consultants expect that banking as we know it today, will be far more faster, efficient and become digital-native in the next few years.

Automation in banks

A number of financial services institutions like JPMorgan, Bank of America, First Abu Dhabi Bank have already started generating value from automation. One good example is where JPMorgan is using bots to serve internal IT tickets to their employees in a completely automated way, and the resolution times are extremely faster than before.

There are so many use-cases in which banks are using automation to improve speed and efficiency. One such use-case could be to automate the entire sales commissions for the on-ground sales people who help banks gain more customers every month. Account receivables automation, like what Barclays executed, fraud detection automation in many banks, and even account closures with intelligent automation are taking over banks now.

There are various success stories of banks using robotic process automation to automate repeated tasks, but there are challenges one could face. Today, once a process automation is a success, the business demands more of such automated processes. Many banks have use-cases that could be automated, but compliance issues could prevent the solution to go live. Some might even face internal backlash to automate processes that humans have been doing for decades.

Despite all the challenges automation, the future seems bright. The automation technology on the whole is evolving at a very rapid pace. With companies pushing their limits to bring AI into automation software, and the return-on-investment (ROI) being realized faster, the automation era has already begun.

Working with the banks for the past few years have given us a unique opportunity to learn something critical:

Automating processes is not just about replicating what humans have done. It is about rethinking the entire process to be digital-first on the whole.

For banks to reap the benefits of automation, a strategic transformation plan is necessary based on these building blocks:

  1. Compile the strategy vs vision matrix.
  2. Identify an internal stakeholder to own this transformation.
  3. Select an implementation partner experienced in banking domain.
  4. Start with non—critical tasks.
  5. Build a Process Design Document with an automation roadmap for the next 18 months.

With these building blocks in place, banks can take advantage of the value of automation in each business unit across the company. When done right, and as the automation investment reaches the ROI, automation at scale comes into picture, where you would need more of what has been implemented for different processes.

The automation era has opened a new set of opportunities by exploiting the untapped potential of human intelligence in the company. Transformations are much clearer with new capabilities being built internally inside the banks, and we believe that AI + RPA is the next wave that banks must take advantage of.

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