In such a competitive financial industry, banks are eagerly looking for various technologies to retain their customers and provide a seamless, customised experience. As the rise of emerging technologies, they are turning to predictive analytics and automation to win their customers loyalty.
With complex regulatory requirements, the lengthy application process, increasing operational expenses and poor customer experience, bank executives and IT leaders are under stress to actively hunt for new technology to do mundane business tasks and increase overall productivity and bring an enjoyable customer experience. Robotic Process Automation (RPA) has come to their minds as it can replace humans to do repetitive tasks and control the operational systems by automating to send emails, copy and paste data, fill in forms and more.
Bankers and customer service teams are swamped with multiple inquiries from account opening to loan processing, many of which require several documents to overview customer background and qualification. This lengthy and frustrating process has a negative impact on not only customers but also employees. Customers tend to alter to other banks and financial institutions because of the unsatisfied customer experience while employees may lose their passion for work due to the routine and monotonous tasks required on a daily basis. With the implementation of RPA, the application process has become quicker and more accurate, significantly decreasing turnaround time. Treasurers are able to invest more time in high-value and creative activities that can benefit both their organisations and customers.
RPA is widely adopted in Know Your Customer (KYC), Anti-Money Laundering (AML), account opening, mortgage lending, loan processing and more. According to Deutsche bank, they are actively developing RPA in various parts of their organisation to reduce risk, enhance process quality, reduce operating costs and improve customer experience. Their first robot, named Iris, successively improved their fund release process. Another example, in cash management BNP Paribas is also leveraging RPA in their daily contract and service management to capture their clients' information and provide a quality service.
Understanding consumer behaviour is imperative for banks to provide customised services and better customer experience. According to Accenture, 87% of banking executives agree on the importance of the integration of customisation and real-time delivery and think it is the next big wave of competitive advantages. Bank sectors need to predict what service customers may like and need even before their clients possibly recognise themselves.
As of today, data analytics has been widely deployed across all the industries and thanks to the advanced technologies, Predictive Analytics along with Artificial intelligence and machine learning is considered to be one of the powerful weapons to drive the best customer experience and gain a competitive edge to boost business.
Predictive analytics can discover valuable insights and hidden patterns by tracking the massive amount of historical data such as demographic information and transaction records, thereby predicting the likelihood of future outcomes - how customers respond and purchase. It is beneficial for banks to offer personalised products to specific customers based on their purchasing behaviours. For example, the relationship manager can provide specific products like loans and engage with clients based on their characteristics and spending patterns. Advanced analytics enables the Royal Bank of Scotland to rebuild their reputation and deliver excellent customer service.
With the adoption of RPA and predictive analytics, banks can improve operational processes and achieve a seamless, satisfying customer experience to build lasting relationships and increase revenue. The power of these technologies are unimaginable and can not be ignored, and it is critical for CIOs and IT leaders to continue to seek and embrace new technology that can bring values to their customers and organisations.
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