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The Role of Intelligent Automation in Financial Services

Miranda Hartley
December 4, 2023

What is Intelligent Automation?

Intelligent automation (also referred to as cognitive automation or intelligent process automation) combines automation technologies – primarily robotic process automation (RPA) and artificial intelligence (AI).

Intelligent automation is fast becoming integral to the core operations of firms in the financial services sector. Research by Capgemini reveals that 35% of key players in financial services have experienced a 3 to 5% spike in revenue after deploying intelligent automation.

In this article, we’ll cover what intelligent automation is and how to use it to boost your business’s productivity while reducing operating costs.

Automation vs. Intelligent Automation in Financial Services

Automation

As of 2020, only 47% of all managers in financial services believed that their firm was operating at maximum efficiency. Interestingly, only 27% of employees agreed.

A solution for trimming the fat from business processes is automation. Employees also stand to benefit automated labour, as it allows them to complete the same amount of work in a fraction of the time. Experts even believe that the four-day working week can become universal thanks to automation technologies.

It isn't automation, per se, that is facilitating these changes in the workplace. Automation itself only refers to an automatic mechanism. Picture a machine that screws the lids onto toothpaste tubes in a factory ‒ a simple and repetitive task that doesn’t require human-like judgment. In contrast, intelligent automation can replicate human thought processes quickly and affordably.

Intelligent automation

Intelligent automation involves technologies that can comprehend data and make decisions based on contextual information. In financial services, intelligent automation can offer sophisticated automated analysis and recommendations.

An Example Use Case of Intelligent Automation in Financial Services: Data Extraction

Manually capturing data and moving it between repositories is tedious and exhausting for today’s workforce. So it is hardly surprising that the intelligent document processing (IDP) industry is set to grow exponentially from $1.78 billion in 2022 to $7.84 billion by 2028.

As the infographic demonstrates, AI can automate the data extraction process end-to-end, leading to several undeniable benefits for firms in financial services and beyond.

Three Benefits of Intelligent Automation in Financial Services

Enhancing the customer experience

In 2020, 45% of consumers reported that they would switch companies if a company failed to ‘actively anticipate their needs’. Now, more than ever, it’s imperative to deliver an error-free, responsive solution to your customers. Intelligent automation will enable customers to move swiftly and seamlessly through a workflow, allowing them to access and manage their finances with ease.

Cost savings 

Clunky workflows are costly, and errors are expensive. Not to mention, spending time fixing mistakes retroactively is an inefficient use of funds.

Likewise, using highly-trained employees to complete simple admin tasks is a waste of resources. In contrast, automation technology is often fairly priced and includes setup and support costs.

Cleaner, more accurate data

The last thing any firm needs is an issue with data credibility. Yet, a study by Harvard Business Review reveals that nearly half (47%) of newly created data records contain at least one critical error. These underlying errors can then compromise two of the financial services industry's primary objectives: increasing customer satisfaction and optimising revenue streams.

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When it comes to enterprise intelligent automation, implementation is a significant consideration. With the right vendor, however, integrating intelligent automation into your current IT architecture should be a quick and painless process. There are multiple integration options available, so speak with a vendor for more information.

Integrating intelligent automation into a workplace isn’t exclusively a technical undertaking – it’s also a cultural shift. Developing a data automation system may cause friction with employees, especially with fears of becoming obsolete (FOBO) from AI. However, with careful oversight, it’s more than possible to quell anxieties and secure buy-in from all stakeholders.

Automated data extraction with Evolution AI

Firms in financial services stand to gain significant benefits from intelligent automation, including increased productivity, higher customer satisfaction and reduced costs. However, successful implementation is essential to unlock the full benefits intelligent automation has to offer.

Evolution AI’s multi-award-winning AI-based data extraction technology enables our customers to enjoy the benefits of automated data extraction at competitive prices.

To discover how automated data extraction can be a part of your company’s growth strategy, send our customer support team an email at hello@evolution.ai or book a demo.

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