This article originally appeared on Finopotamus.
“To err is human.” – Alexander Pope
Banking processes have been built around human operations and processes. We see it with reconciling at the end of the day, processing loans, signature ceremonies, the list can go on and on.
But as Alexander Pope’s quote suggests, human processes are riddled with errors. No matter how hard we try, or how well we hire, humans can (and will) make mistakes. Simply put, manual tasks lead to significant challenges for FIs, including reduced productivity, less-than-optimal customer service, and increased operational costs.
Today, automation plays a transformative role in modern banking operations. From decreasing loan origination and closing process times to maximizing FTE hours, credit unions are turning to automation to improve their manual processes and drive new efficiencies.
Manual methods, while familiar, are fraught with inefficiencies and errors, leading to significant challenges and risks for financial institutions (Fis). The primary impact of these manual processes is felt in diminished productivity, as staff spend considerable time on routine tasks that could be automated. This not only slows down service delivery but also increases operational costs.
Compliance:
As we all know, the banking sector is heavily regulated, and becoming more heavily scrutinized by the minute it seems. Manual compliance processes are time-consuming, and they are also prone to errors — risking hefty fines and reputational damage.
Experience:
Today’s consumers expect quick and seamless service. Delays and inaccuracies from manual processes can lead to dissatisfaction and ultimately, customer attrition.
Scalability:
Traditional banking processes struggle to meet growing customer demands or adapt to peak periods. This inability to scale efficiently can hinder an FIs growth and responsiveness in a competitive market, underscoring the need for transformative approaches to banking process management.
Automation can completely transform the way an FI operates. From increasing efficiencies to cutting costs, here are some of the ways we’ve seen teams benefit almost immediately after replacing manual processes…
