Will Automation Take Over Financial Services?

Intelligent automation promises to change how financial services companies work internally and improve client relations. For a long time, financial services firms have been embracing automation. Artificial intelligence (AI) is generating a lot of buzz these days as companies look for ways to boost revenue, customer service, efficiency, and risk management. As a result, automation has become a significant component of that progression, with robotic process automation (RPA) in particular expected to play a key role in job execution within financial institutions in the coming years.

RPA is the process of automating across applications and systems to execute repetitive operations that were previously performed by humans, combining robotic automation and artificial intelligence. It's also known as "smart automation" or "intelligent automation," and it refers to any software system that may be configured to do activities that previously required human intelligence to complete successfully.

What is Artificial Intelligence (AI)?

The simulation of human intelligence processes by machines, particularly computer systems, is known as artificial intelligence. Expert systems, natural language processing, speech recognition, and machine vision are examples of AI applications. Artificial intelligence, as opposed to the natural intelligence displayed by animals such as humans, is intelligence demonstrated by robots.

How Does It Work?

Alan Turing changed history with a simple question: "Can machines think?" The core purpose and vision of artificial intelligence were set by Turing's paper "Computing Machinery and Intelligence" (1950) and the Turing Test that followed.

At its most basic level, AI is a discipline of computer science whose goal is to answer yes to Turing's question. It is the goal of artificial intelligence researchers to recreate or simulate human intellect in robots.

Artificial intelligence's broad purpose has sparked a slew of questions and arguments. So much so that there is no commonly acknowledged definition of the field.

Source: DART Consulting

Automation and Financial Services

• Customer-centricity and personalization

Over the last year, customer behavior has shifted substantially. People became increasingly tech-savvy as they became accustomed to digitalizing their lives. Businesses must adapt and provide expanded functionality and value in order to match customers' expectations for financial services in 2021. Leading these breakthroughs and joining the ranks of digital champions is a noble undertaking for today's CIOs.

• Implement AI technologies for building digital ecosystems

The proliferation of all-in-one apps in non-banking has changed how customers find and use services. People have grown accustomed to complicated digital interactions. Banks and investment firms will have to adapt and combine into digital ecosystems where clients engage with the economy by 2022.

• Leverage robotic process automation in financial services

It goes without saying that routine tasks should be mechanized. To enable workload scalability, intelligent robots have already been integrated into financial procedures. The stakes are considerably higher this year, as machines begin to make decisions based on accurate data analysis. Business objectives are served by AI in conjunction with remote teams, and human employees become more successful as a result of this partnership. They display their creative potential when they are liberated from mundane chores, which aids in the resolution of high-level issues and the mitigation of company risks.

Conclusion

Organizations in the financial services industry will be moving toward new frameworks for smart automation in 2022. Analog business paradigms will be phased out in favor of digital ecosystems and long-term digital workflows. Financial services are no longer seen as solely transactional. Today's CEOs are tasked with shifting a company's perspective toward customer-centricity and long-term viability.