According to Kofax, 88% of process mistakes are due to humans. Unfortunately, we can’t scale like machines.
Risk of errors increases with the pressure on financial services institutions to handle growing volumes in less time. Even one small oversight can result in penalties, fines and catastrophic loss of business. Banks, insurance agencies and lenders must deal with this regularly.
Fortunately, tasks that take financial services institutions hours to process can now be completed in seconds or minutes. And without human error. These organizations are slowly adopting these technologies in order to please customers, automate knowledge workers and increase revenue.
Although an array of technologies contributes to this new wave in financial services innovations, the common denominator is the Internet of Things (IoT). Here are just a few IoT-supported solutions transforming the industry:
1) Robotic process automation (RPA)
RPA deploys intelligent business rules and software-driven robots to repeat specific actions knowledge workers take while performing tasks in various applications. This form of “digital labor” is being embraced by financial institutions that aim to automate a wide range of activity—without the need for complex programming.
RPA provides companies with a virtual workforce that’s rules-based and set up to build an automation platform for the front office, back office and support functions. Since businesses today automate only 40% or less of their workflows, there’s plenty of room for RPA to shine. The key is creating the right balance of humans and automation to drive productivity and identify improvements with process intelligence.
2) Rapid prototyping
It’s critical for financial institutions to know exactly what’s in a contract as well as each version of that contract. Now these organizations can automatically extract data from a high volume of complex documents. This unattended process is highlighted by rapid prototyping and the ability to identify specific information crucial for moving business forward.
For example, Bank of America deployed rapid prototyping for its popular Keep the Change savings program. When customers make everyday purchases with their debit card, the bank automatically rounds up their purchases to the nearest dollar amount. The difference is then transferred from the customer’s checking account to their savings account—without human intervention.
Rapid prototyping also makes it possible for a bank’s legal team to locate specific legal terms within minutes, not hours or days. This is key for finding potential compliance violations and missing elements, such as signatures and calculations.
3) Predictive analytics
Financial institutions are now leveraging predictive interpretations and decisions derived from unstructured data found in PDFs, voice-to-text, handwritten notes and other sources. The technology then combines unstructured data with structured data to produce true and complete insights.
A text analytics solution can accurately interpret the unstructured data flowing through an organization, and understanding unstructured data can have a dramatic impact on the institution’s decision-making.
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