IA is playing an increasingly important role in the financial sector. But, with many banks hesitant to overhaul their existing legacy infrastructure, just how can it be introduced into banks? Find out how organisations can future-proof their business, guard their reputation and improve their customer experience by embracing today.
Applications of Intelligent Automation in the Banking Industry
IA has tangible qualities for the financial sector; with powerful real-life applications to transform business processes. One such example is the negative impact that heavy resource-exhaustive tasks have on business operations and client experience, which can be demonstrated in the loan querying process for banks.
Once a bank has received a new loan query, they enter a lengthy stage of adjudication requiring a huge input of human resources – and an increased risk of human error.
From gathering documents and supporting evidence, to cross-checking and verifying data, the internal criteria checklist for each loan approval is one that takes a substantial amount of time. Banks need to be confident that the client meets their lender requirements, and assured that the information they have provided is truthful and up-to-date. This complex process can take anywhere from a few days to several weeks, depending on the individual loan policies and the amount the customer is seeking to borrow.
With such a huge amount of data input and checking required, the process is vulnerable to human error. . With such high levels of manual input, it’s also difficult to ensure accurate, up-to-date information – meaning teams must monitor or work on data repeatedly to ensure they are working with the correct version.
Encountering such a long waiting period also runs another risk – the loss of the customer altogether. With young, disruptor brands springing up in the market, many are able to offer quick approval on substantial loans, meaning that banks which are burdened by a slow approval could miss out on vital business.
How Does IA Help The Loan Approval Process?
Banks are in need of a solution that can perform multiple functions: gathering documentation quickly, verifying with accuracy and speed, executing cross-checks for adherence to regulations, running Know Your Customer (KYC) policies, building a loan plan and contracts, and then responding to the client. In addition to this, they need to utilise a system that will ensure secure and easily accessible data storage.
IA platforms can achieve just that. Their software accelerates the process up to the point of being able to respond within the same day and increases accuracy outputs to 100% to give complete confidence in the loan products which they are delivering to customers.
Adopting a Digital Evolution Approach to Change
For banks that are reluctant to undergo a complete overhaul of their processes, a digital evolution methodology is a perfect approach. This method of delivery allows the business operations to deploy automation in an agile, iterative manner to start realising real results and outcomes. Highlighting a key process like loan approval, and working to enhance this output, gives banks complete confidence in the capabilities of IA – allowing them to integrate it into their business with ease.
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