No longer can typically traditional industries afford to conduct business as usual. The banking industry for example has witnessed a rapid rise in competition over the last year with the rise of FinTech’s and unicorn startups. These next-gen entrants follow agile and technology-driven business models that are giving traditional incumbents a run for their money. As a result, traditional players in the banking industry have started to reassess their ways of working and develop new business models which has led to digital banking. The era of automation and AI is here and it is reengineering how banks operate.
Next-gen Solutions for Modern Banking
As automation and AI technologies have matured, the financial industry has become one of its major proponents. These organizations are adopting Robotic Process Automation (RPA) and Artificial Intelligence (AI) solutions as a way to help them enhance revenue by innovating products faster on increasingly slimming profit margins. The banking industry is also using these intelligent automation and AI solutions in internal operations which can create significant value by streamlining processes and leverage data analytics to drive actionable insights. On a fundamental level, artificial intelligence solutions help banks ensure standardization, consolidation, and the automation of operations in a way that is easily scalable and conducive to lowering the internal cost of delivery.
In fact, not only does intelligent automation help banks achieve greater operational efficiencies and cost savings, but also adhere to the rigorous standards of trust and compliance. With respect to customers, advanced AI solutions are being combined with customized algorithms, vast data, and machine learning to gain a detailed view of a bank customer’s needs, habits, and lifestyles to improve customer acquisition and retention. This not only helps them be faster in service delivery but also become truly customer-centric by offering predictive solutions. All these benefits of artificial intelligence and robotic process automation are becoming even more prevalent across the industry and are well on their way to becoming an industry norm across large-scale banking organizations.
Critical Role of RPA and AI
There is little doubt that RPA and AI are becoming a key priority for the banking industry. In fact, according to a NelsonHall report, the size of RPA and AI services in the banking market is estimated to reach $635 million by the end of 2018 and continue to grow at nearly 15% per year until 2023. With the combined benefits of RPA and AI in banking, financial enterprises can offer intelligent automation solutions that focus on speed, efficiency, and accuracy to drive growth, reduce risk, scale operations, and offer a customer-centric digital banking experience while adhering to all compliance and regulatory requirements.
But more often than not, this is easier said than done, since AI technologies alone do not offer a turnkey solution for an industry as complex and dynamic as finance. In reality, modern banking organizations need to be particularly careful when considering these transformations from various vendors as they cannot afford waste or risk when making such significant changes. Companies in the banking sector need a proven solution that is comprehensive and adaptable while also addressing industry-specific needs. This is only possible when vendors follow a process driven, technology-led solution that offers financial companies the correct framework and workflow that includes consulting, solution design and deployment, and operational support during the lifecycle of the AI solution. They need HCLTech.
HCLTech: RPA & AI Market Leader for Banking
In April 2019, NelsonHall, a leading global analyst firm, released the findings of the NelsonHall NEAT vendor evaluation report for RPA & AI in Banking. The report deployed the NelsonHall Vendor Evaluation & Assessment Tool to analyze the performance of 14 different organizations in the RPA and AI space, specific to the banking industry. The NelsonHall NEAT tool was used to assess these 14 organizations across a number of dimensions such as overall capabilities, RPA capability, AI capability, and capability to support new digital banking models.
The companies were assessed based on their “ability to deliver immediate benefit” and the “ability to meet client future requirements”, and classified as either Leaders, High Achievers, Innovators, or Major Players. It is my distinct pleasure to announce now that HCLTech was identified as a “Leader” in the Overall market segment which reflects our proven capability at delivering immediate benefits of AI and RPA to our clients in the banking sector, while also being capable of meeting future requirements. This has been a welcome recognition to the journey that HCLTech began only six years ago in 2013 without RPA and AI services as an initial part of our autonomics and orchestration business.
Since 2013, HCLTech has excelled and expanded its services in the RPA and AI vertical by offering our clients some of the most advanced solutions including, Toscana, EXACTO™, and Lucy. The DRYiCE™ framework has been the backbone of HCLTech’s implementation of autonomic orchestration across systems, while our Toscana solution has helped organizations streamline their business processes management. Additionally, Lucy has served as a cognitive use agent for cloud operations. Our most recent automation offering has been EXACTO™ which leverages the power of machine learning-based artificial intelligence to drive rapid and accurate content digitization.
And the benefits of HCLTech’s innovative products have been evident since the very beginning. In 2014, HCLTech’s first robotic process automation engagement with a global European bank helped the client reduce their turnaround time (TAT) for account opening and residential mortgage approvals. HCLTech was able to help improve the data sourcing from across the bank’s disjointed system and improve the data processing using our automated solution. The result – a reduced average handle time by 80%, reduced TAT from 96 hours to same-day processing and reduced overall costs by 41%.
But more than just our innovative products, it is actually our collaborative approach with clients in the banking sector which is designed to develop a consulting partnership that helps them define the scope and extent of their technology investment before implementation. With HCLTech’s end-to-end vendor partnerships, our clients will continue to remain competitive in the complex and dynamic world of banking for years to come.
To know more, do read the NelsonHall Neat Report on RPA & AI in banking here: /analyst/bserv/hcl-positioned-leader-nelsonhall-neat-rpa-ai-banking