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ROBOTICS IN BANKING Robotics | driving new age banking
The face of the friendly neighbourhood banker is slowly, but surely changing. Robo-advisors, for example, are eating away 50-60% of new jobs in the wealth management space. Welcome to new age banking
Author V. Ramkumar, Senior Partner, Cedar Management Consulting International
better risk control and lower costs via robotics and artificial intelligence is here to stay. Automated threat intelligence, fraud analysis and quality assurance, predictive analytics, voice recognition and automated response are the exciting new areas of focus. Add the convenience and intelligence of bots to customer experience and we may well see new era of banking. No surprise, then, that around $9.7 billion was spent on cognitive and artificial intelligence in the US during 2017 alone.
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From a bank’s strategic perspective, a review of the way forward involves: Which areas drive automation through robotics and why? What is the impact that is to be driven and how? How should the right RPA partner be chosen?
Let’s quickly explore these in more detail. 1. Prioritising your focus areas:
The primary focus areas that typically qualify for driving robotics are mostly those with highly mechanised operations, with limited decision making requirements. These are typical back office functions, validation and verification activities and monotonous operations.
ICICI Bank for example, has reportedly over 200 software robots to emulate, automate & perform repetitive, high volume tasks across multiple business process functions including retail banking operations, trade, forex, treasury and HR, with a process capacity of over a million
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he opportunity to drive higher efficiency,
transactions daily. This is estimated to reduce customer response by 60% and increase accuracy to 100%.
Once low hanging fruits are addressed, the approach typically moves to areas that have a better user interface, even while it is focused on highly repetitive activities that tend to clog bandwidth. New generation bots help learn and get better at what they do, driven by intelligent process automation. Good examples here are chatbots linked to social media and websites, providing quick and appropriate responses to customers. RBS recently launched AI chatbot Luvo on a pilot basis, focused on filtering responses and providing appropriate responses to customers. The technology is estimated to reduce investment advisory staff by 200, improve operational efficiency and reduce response time to queries.
The more interesting areas of predictive analytics driven AI, while having a high impact value, tend to require a much higher degree of focus and preparation. Enhancing customer experiences is also supported by innovations across online channels, where conventional experience is protected. US-based Nuance Communications’ tech,
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