Over the years, digital transformation has secured its place in every industry and banking is no stranger to this. With a couple of success stories, automation in banking has proven its worth. And now, to be the best in the financial industry, the implementation of Hyper-automation becomes fundamental. It might be a challenge at the beginning especially for small and medium banks, but considering the big picture, Hyper-automation is the future.

Why Hyper-automation for small and medium banks?

The recent pandemic has hit the small and medium banks not just in Europe but around the globe to a major extent and some of these businesses are aided by the government by issuing funds to maintain liquidity. The smarter way to utilize such funds is to adapt to an efficient digital platform proactively. One such way is to opt for automating the entire banking core system. From reducing processing time and cost of operations to enhancing the customer relationship, automation is that robust technology that banks need.

One advantage for small and medium banks is that they need not worry about their legacy system while transforming digitally as their database is relatively smaller compared to bigger banks and can be transformed with less effort. Therefore, small and medium banks can upskill digitally faster in this regard.

However, just automating your current services to a digital portal doesn’t suffice for an efficient process. A bank’s digital transformation should be customer-centric which caters to the ever-increasing customer expectations with minimal efforts. It seems complicated, but the reality is, it is not. However, the question is how banks can proactively digitalize the financial processes? The answer is simple- by climbing a step further in automation technology which is Hyper-automation.

Hyper-automation, with the combination of technologies like RPA, AI, ML, and other cognitive automation elements, creates a smart and capable lending service which is insight-driven and self-empowered.

Most of us are aware of the pros of having technically-driven solutions. Be it RPA which helps in faster turn-around time and accurate process runs or AI, which, on the other hand, will take care of automating steps that RPA cannot perform like Optical Mark Recognition, Image Correction, etc. Imagine the combination of these two along with other solutions. Will this not help the banks increase their processing speed with minimal effort? Yes, it will and that is the reason why banks like SBA have implemented RPA and AI in their banking solutions.

It is estimated that more than half of the activities for which employees are paid (which accounts for US$ 2 trillion annually) can be automated with the adaption of advanced robotics and AI.

All that is fine, but where to start implementing Hyper-automation to understand its effectiveness is the million dollar question? We say, retail loan processing because, it is time-consuming, monotonous, and highly prone to human error. And the best solution is to switch to Hyper-automation as it will reduce the efforts tremendously and attracts the customers simultaneously. With government aiding small and medium banks with CBILS act, you can leverage hyper-automation for retail loan processing so that liquidity of your banks will be maintained with an efficient loan processing system that can prove beneficial in the long run.

How Hyper-automation benefits Retail loan processing?

1. Faster customer onboarding

A simple automated data management will have a self-service model and infrastructure strong enough to manage peak loads. With Hyper-automation, banks can have customer-facing web portals and API’s and digital onboarding happens seamlessly along with differentiating the existing and new customers in the lender’s loan origination form. This can double the speed of customer onboarding. Irrespective of the kind of existing loan origination solution, Hyper-automation can be applied to any of them and hence banks truly have a digital onboarding solution.

2. Seamless customer data integration

One of the useful applications of Hyper-automation is that it has the ability to pre-populate customer information fields automatically by collecting the required customer’s financial and other data.

3. Identify and reduce risks

Automated processes reduce risks and even if there is any, can be identified and resolved leading to an efficient overall loan processing system.

4. Offer customer-centric insights

To maintain long-term customer relationship, there are customer-centric insight-driven targeted push notifications. Cognitive automation not just speeds up retail loan processing but also gives sound customer-centric insights.

5. End-to-end implementation

From customer onboarding, verification, validation, to the final payment collection, etc., Hyper-automation is the ideal solution.

6. Reduced human intervention

Introduction of Hyper-automation in every step of the loan processing system reduces the overall human involvement as the system is less prone to human errors.

7. Efficient execution

The first step of loan processing, which is customer onboarding is highly time-consuming. With Hyper-automation, the whole end-to-end implementation is completed in minutes with reduced errors.

8. Cost reduction

A report from Everest Group states that a well-orchestered automation setup will reduce costs through operations that are autonomous and self-healing. Hyper-automation, being a step ahead, will take care of loan workflows without having to modernize the existing tech infrastructure and hence, reduce the operating costs to a significant level.

Aspire’s take on Hyper-automation

Aspire’s approach is simple – Attention, Always. We believe in being future-ready. Our attention is towards the trending technology which proves to be beneficial to businesses. With over a decade’s experience of being in the forefront of digital innovation, Aspire has the expertise required to build a digital platform which is self-empowered to automate and transit from data-driven mindset to insight-driven culture without any engagement gaps.

Aspire can help you overcome challenges like human errors, lack of scalability of resources to manage workflows, high operating costs, and the chaos of unstructured and structured data.

With businesses ready to opt RPA and AI in their application, they are in need of an expert who can ensure right process automation with no technical and operational vulnerabilities. For such businesses, Aspire is always a step ahead with their cognitive robotic processes which combines AI, ML, big data, speech recognition technologies, etc., to provide a seamless end-to-end experience.