Banking Automation: Use Cases

Banking is often viewed as an antiquated industry. Some banks are stuck in the same old way of doing things, or are slow to embrace technological advancements. But in the digital age, customers expect more and your organization may be at risk of falling short of the competition: particularly the up and coming fintech start-ups.

Banking automation is a sure way to boost your efficiency, productivity, customer service and help to ensure compliance: which is essential in such a highly regulated industry. Here are key business processes that banks can automate to give them the edge:

Customer onboarding

The onboarding process handles lots of information: data capture when customers complete application forms, data validation to confirm the customer has given the correct information, passing the data between departments, and then inputting information into banking systems. Doing all this manually takes time and leaves room for error. Automation can bring efficiency and clarity to the process. 

You can automate various steps in the onboarding process, including digital data collection, identity verification and KYC, communication and notifications – both internally between employees and external communications to keep customers updated on the process. Bizagi Customer, Old Mutual had 11 disconnected systems with no single view of the customer. This created an unnecessarily long onboarding process as staff relied on individually coded variables to approve the customer data. But by using Bizagi to  orchestrate processes through a simplified data model, they reduced their customer onboarding time ten-fold.

Find out more about how to optimize customer onboarding with automation: https://www.bizagi.com/en/blog/transforming-customer-onboarding-in-banking-with-automation

Know Your Customer (KYC)

A vital process, Know Your Customer helps to protect your bank from criminal activity. But customers can get frustrated when the process slows down the time it takes to open an account. 

You can optimize the KYC process by automating tasks including data collection, monitoring and reporting, risk screening and customer due diligence, as well as orchestrating workflows to ensure a consistent, thorough and quick process. This helps to ensure that nothing is missed and you can be sure that your customers are properly validated. 

Automation can verify your customers immediately rather than forcing them to communicate back-and-forward with you for days and even weeks. This efficiency gain can prove invaluable when it comes to keeping your customers engaged and your onboarding abandonment rates down. 

Learn more about how the KYC process can be improved with automation: https://www.bizagi.com/en/blog/kyc-automation-benefits 

Anti-money laundering (AML)

AML automation leverages software to identify risk-related indicators in customers and transactions, proactively preventing money laundering and ensuring full compliance with AML regulations. 

Low-code automation platforms play a crucial role by converting manual risk policies into streamlined digital workflows, linking disparate systems to provide a comprehensive data overview necessary for customer due diligence and ongoing monitoring. Additionally, these platforms enable intelligent automation that swiftly detects and flags suspicious activity. Stay one step ahead in combating financial crime with AML automation.

Various tasks within the AML process can be automated, including transaction monitoring, data analysis and pattern recognition, and audit trails and reporting. These all help to provide better overall fraud protection while enabling higher productivity of your staff. 

Learn more about how the AML process can be improved with automation: https://www.bizagi.com/en/blog/anti-money-laundering-automation

Approvals

The approval process can often create a bottleneck and slow things down, but it’s vitally important in banking when there are a multitude of rules and regulations to adhere to. Approvals need to be implemented in loans and mortgages, credit cards, large transactions and more. 

Automating steps within an approval process, such as criteria-based approval triggers and automated alerts, helps to make it more efficient. This may feel like a misnomer, as some actions will still require manual approval, but you can still automate the trigger that sends the approval request to the person who needs to sign the action off.

AEON Credit Services Asia sped up its credit card application process using Bizagi’s low-code automation platform. The old paper-based process which used to take over 2 weeks, was reduced to just 30 minutes. This meant they could offer set up credit card sites within department stores to combine with promotions and used on-site embossing machines to give customers their new cards, ready to use, on the spot.

Find out more about how automation can enhance the approval process: https://www.bizagi.com/en/blog/automating-banking-approval-processes-loans-exceptions

Fraud prevention 

In addition to individual processes such as KYC and AML that can protect your bank from fraudulent activity, you can take a holistic approach to fraud prevention at your bank with a low-code automation platform. 

Many banks have inadvertently created silos and disparate systems as they’ve developed their tech stack. These gaps and the inability for systems to communicate with each other a vulnerability that criminals can exploit. A low-code platform that allows you to develop processes and integrate applications in an agile way ensures that you don’t get left behind by cunning fraudsters.

Find out more about how you can connect your silos to prevent fraudulent activity: https://www.bizagi.com/en/blog/financial-services/banking-fraud-prevention-system-silos-create-gaps-for-criminals

Fraud claims 

When customers are hit by fraud, banks need to act swiftly to help them recover the costs. But of course, you can also be hit by fraudulent fraud claims! It’s a fine balancing act of satisfying customers who have been wronged and protecting your own interests. 

Steps within the process that can be automated include automated forms to collect and verify customer information, data ingestion, claims triage, task assignment, intelligent fraud decisioning and customer communication.  

By leveraging a process automation platform, you can manage your fraud claims more efficiently and effectively. The benefits are plain to see, helping to improve productivity of your staff and speed up the process by automating many of the manual steps involved, which ultimately improves customer satisfaction.

Learn more about automating the fraud claims process: https://www.bizagi.com/en/blog/fraud-claims-how-process-automation-enables-banks-to-help-customers 

Loan origination 

When it comes to facilitating loan approvals, time really is money. Customers expect a speedy, intuitive loan application process with real-time decisions for mortgages, personal loans, and credit cards, otherwise, they will go elsewhere.

Automating the loan origination process can help you to improve productivity, visibility, and compliance. You can automate key tasks including pre-qualification, application, application processing, underwriting, credit decisioning, quality checks and funding. 
Agricultural lender, Agfirst selected Bizagi to deliver robust and reusable business processes. Utilizing agile methodology and leading-edge process automation, AgFirst now has a responsive, automation platform capable of adapting to its customers’ changing needs. They optimized the loan analysis process to close cases 60% faster than expected. 

Discover automating the loan origination process with Bizagi:

Customer service 

As with any industry, customers expect swift resolutions to any issues they face. But disconnected systems and poor processes can slow down employees’ ability to solve customer queries.

An automation platform can provide a holistic view of customer information, with automated triaging and information gathering helping support agents to make customer interactions more personal, resolve cases faster, and save costs for your bank. 

Bizagi customer Old Mutual used Bizagi to optimize their customer service capabilities. The bank‘s staff had no single view of individual customers, which was slowing down their loan approvals. Their infrastructure was made up of 11 disconnected systems, which made it hard to deal with customer queries. But customers don’t want to wait to deal with different departments, as it means long queues and a frustrating experience.

By connecting disparate systems and automating the exchange of customer information with Bizagi, staff spent less time manually cross-checking data. They were instead provided with an intuitive view of customer profiles containing all the relevant data they required. Point of contact resolution improved by 30% and Old Mutual has seen their NPS increase by 15%. 

Find out more about how to automate your customer service process: https://www.bizagi.com/en/blog/how-automated-customer-service-can-delight-your-employees-and-customers

Risk management 

Credit risk, market risk, operational risk and cyber risk: there are plenty of risks that banks have to proactively manage as part of everyday operations. 

Banks can leverage process automation platforms to enhance risk management with workflow optimizations and automation to promote transparency, accountability and auditability. They can automate tasks such as data integration and aggregation, risk monitoring and scoring, compliance and regulatory reporting, fraud detection and prevention, and risk mitigation and control. 

Bizagi customer Insight Investment implemented workflows that standardized processes, reducing operational risk by guiding staff through complex processes and handing off work reliably.

Find out more about risk management in banking: https://www.bizagi.com/en/blog/how-automation-can-improve-risk-management-in-banking

Upsell & cross-sell 

Automation technology can help you target the right customers, at the right time, with the right products.

A low-code automation platform provides a central location in your tech stack that automatically integrates all your customer information and orchestrates your data ready for analysis and optimization. It can help with your upselling and cross-selling campaigns by integrating customer data, segmenting and analyzing customers, personalizing engagement, and track, analyze and review performance. You can also usean machine learning and recommendation engines to optimize the process.  

Learn more about how the automation can help banks to upsell and cross-sell: https://www.bizagi.com/blog/en/automation-helps-banks-upsell-cross-sell

Transform your banking operations with process automation 

Low-code automation platforms can be used to enhance a plethora of different activities across your bank. Find out more about how Bizagi’s low-code automation platform can drive efficiencies across your financial institution.