Hyperscience – one of the market leaders in hyperautomation on 21^st Feb 2024 announced the Hyperscience Hyperautomation Network. Hyperscience – also a provider of enterprise AI software infrastructure announced a new partner program that is focused on applying artificial intelligence & machine learning technologies for transforming back-office processes of customers. The hyperautomation network connects the system integrators with best-in-class enterprise software partners, as the 1^st partner programs that is designed for creating an ecosystem which delivers hyperautomation solutions to the market with an aim to support customer revenue growth.

“The rise of generative AI has created a wild west scenario for vendors and customers alike,” said Andrew Joiner, Chief Executive Officer, Hyperscience.

“As a strategic partner of Hyperscience, Reveal Group is proud to be at the forefront of delivering transformative solutions to enterprise customers globally,” said Jamie Fisher, Partner at Reveal Group.

RPA and Hyperautomation in banking industry is anticipated to reach USD 4980.65 million by 2029 growing at a CAGR of 27.52 per cent. The financial services organizations operate in a complex as well as rapidly evolving landscape. Since there are millions and millions of people opening bank accounts either by visiting the bank in person or for instance, opening a saving account through online banking, banks are facing various kinds of challenges. They navigate continuously through increasing expectations of customers, geopolitical shifts as well as heightened regulatory demands.

Also, several banks have a strategic transformation programme as part of their operational as well as technology infrastructure in order to respond to these huge challenges. They are aware of the new technologies such as generative AI will obtain profound change in the banking sector that would trigger a cognitive leap which would lead to optimizing productivity as well as innovation at an unprecedented scale. Another way through which banks and other industries can drive productivity & boost customer satisfaction is by leveraging and implementing hyperautomation solutions. In this article let us look at the benefits of hyperautomation and the areas where it is gaining traction in the banking industry:

Improved Operational efficiency & customer experience

Hyperautomation improves the operational efficiency within banks significantly as it helps in automating routine processes, that include document processing, transaction reconciliations, data entry, decreasing the requirement for manual intervention. Therefore, this not only augments processes but it also reduces errors, leading to a more reliable as well as cost-effective operation.

Banks can use hyperautomation to offer personalized, 24/7 services to their customers. Chatbots & virtual assistants powered by Artificial Intelligence can respond to inquiries as well as perform transactions around the clock. Faster response times coupled with the ability for tailoring services to separate customer requirements leading to enhanced customer satisfaction as well as loyalty.

“Hyperautomation facilitates organizations to improve customer experience by reducing the friction in user self-service applications and streamlining broken onboarding processes. It enables faster support and sales query resolution through relevant integrations, AI/ML, and assistive technologies,” says Arvind Jha, Former General Manager – Product Management and Marketing, Newgen Software.

Some of the companies offering financial automation solutions include SolveXia, BlackLine, Xero, and more.

Customer Onboarding and KYC Processes

Irrespective of the sector, the process of customer onboarding is quite a lengthy process. When a customer opens a bank account it is important to conduct proper customer screening as well as evaluating their credit history since it saves any financial institution or bank from money laundering & non-compliance. This is where hyperautomation comes into place and solves both the challenges of time consumption & the risks involved.

Customers today can embark on a self-onboarding journey with banking mobile applications by saving the customers as well as banking agents’ time. Artificial intelligence systems further make the tasks safer by doing real-time KYC checks as well as assessments of the creditworthiness of the  applicants. Most of the customers today prefer online banking as well as it saves their time and helps in keeping a track of their transactions easily.

“While some institutions have invested in biometrics at some level, they can further invest in data analytics and artificial intelligence to strengthen their security infrastructure. The BFSI sector is highly regulated in nature and sooner than later, measures like these to secure customer data are expected to be a part of the regulatory framework itself,” says Seshadri PS, Senior Director Governance, Risk and Compliance, Office of the CISO, Unisys India.

Loan Origination, Credit Appraisal and Fraud detection & prevention

Loan processing is another hectic and time-consuming task in the banking industry that takes around thirty to forty five days even with loan origination systems in place. Intelligent automation solutions do not just accelerate the process but they provide transparency as well as accuracy with real-time insights into the customer data which can save upto seventy per cent of loan processing time.

Payment fraud is another biggest challenge banks face. According to Statista, last year alone, fraud worth 1.59 billion U.S dollars took place in the US. Therefore, it is important to prevent these frauds but it is time consuming & resource intensive process.

Hyperautomation helps banks in setting up automated systems for identifying abnormalities in transactions, as well as timely notify the compliance teams in the fraudulent activities case. The most important feature of hyperautomation is that it will not just predict present frauds but also predicts the future frauds.

“Data security remains a very critical focus area for banks, the reputational risk and the regulatory fines have rather reinforced it. Banks in many countries are not just responsible for the data security of the clients but also for the data that is handled by any third party on behalf of them,” says Mohua Sengupta, SVP-BFSI, ITC Infotech.

“In this view, banks' compliance teams need to develop, document, implement, and rehearse a process that clearly identifies the roles and responsibilities of every entity that handles data for the bank,” she adds.

Hyperautomation has not only empowered the banking sector to rethink as well as reinvent work processes but it is also paving the way for various solutions which could answer not just yesterday’s problems but it also helps in changing future challenges. Automation will get advanced where several technologies will complement each other for delivering real automation as technology advances.