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Apr 20

The impact of automation on banking

Reading Time: 3 mins

More work, not a shrinking workforce, is an opinion of some that is not shared with everyone when it comes to automation and AI (Artificial Intelligence) in banking.

A good percentage of workers in the banking sector fear that technology such as automation will take away their jobs, with a PwC study estimating that the UK GDP could be 10 percent higher within the decade due to the use of AI tech. All this has only increased fears.

The threat is so real that the Institute for Public Policy Research has urged the government to take steps to prevent automation taking full control as it could not only result in thousands being made redundant but also aggravate gender and age inequalities.

Some leading financial institutions are optimistic, though, and say that the transition will create more job opportunities rather than eliminate them.

It is at this point that financial institutions need to review their employees’ DBS (Disclosure Barring Service) certificates as once this “work reshaping” kicks in some staff might not have an adequate DBS clearance.

It’s up to HR to see if an employee’s new role requires more than just a basic DBS certificate and if a standard DBS check will have to be requested. It’s important to note that although a basic DBS check can be applied for by the individual, a standard check has to be done on behalf of the individual through an authorised agency. Those involved in IT and who have access to valuable and personal data should be Security Verified too to give clients peace of mind.

From a positive standpoint, with this new way of working on the horizon, those in banking can embrace it rather than fear it. They could be part of an emerging era of job atomisation, the breaking up of work into smaller component responsibilities thereby enabling organisations to transform job functions and processes.



Competitive Advantage

By streamlining validation processes, the turnaround time of providing a client with a decision can be much faster. This will set the institution apart from its competitors and create a loyal customer base.


Optimise Performance

By automatically controlling critical tasks, you eliminate the risk of human error and avoids losses. New data sources and better information quality will be accessed and achieved through advanced analytics.


Better Customer Relations

Targeting is improved by using triggers offering relevant services and products. Extra sales are driven with new customer relationship methodology such as rewarding customer loyalty that will be picked up by an automated or AI system.


Improved Digital Portals

Portals need to present customers relevant marketing offers, up-to-date balances, easy application processes and transparency of info. Providing an online chat option will provide that personal touch.


Consistency of Decision Making Guaranteed

By automating core decision points, you will do away with the risk of bias and improve fairness thereby reducing confusion around decisions and shortening training cycles. There are even advanced techniques that will pick up on bias in available data.


Better Risk Management

With automation, each new loan operation, for example, will pick up on an institution’s risk “appetite” and will remove subjective interpretation. The service provider will be more responsive and able to rapidly implement changes to fraud and credit policies which will avoid making the same mistake twice.


Increase workflow

Losing a large portion of manual processes means that workflow is more streamlined and efficient. Underwriters’ valuable time will not need to be taken up with processing straightforward applications or proposals meaning they are freed up to concentrate on more complex lending scenarios.


Paper Process Reduction

By using a data-driven rules engine, financial institutions can vastly reduce the use of paper. Electronic applications can do away with the need for paper and can be linked to an underwriting rules engine which automatically completes all mandatory fields doing away with having to decipher handwriting. It is good for the environment too.


Facilitates Product Development

Product development is often hindered by data-quality issues and bottlenecks. Automation can help identify these obstacles providing a far quicker turnaround for a launch of a new service or product.


Provides New Opportunities

Automation gives an organisation the opportunity of reshaping its infrastructure to provide existing employees with drive and promise them a new career path. This will enable them to play an integral role in their company’s growth.

Automation is not a worker’s enemy, it can be quite the opposite if it’s seen as a tool that will enhance the workplace, enable worker’s to shine and move the institution into an advanced era of the way we do business.


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