Bank Automation Summit 2023 for Banking Transformation | HCLTech
Bank Automation

Automation you can bank on

We are on the threshold of a new hyperconnected economy — and need to transform the way we work and do business. AI and automation are going to be the key competitive differentiators, as they enable enterprises to improve business outcomes and reduce costs. HCLTech is supercharging progress for banks like yours through cutting-edge automation to help our customers significantly enhance business efficiency and speed to market. Meet us at Booth #1 to find out how.

Kicking off Bank Automation Summit 2023 with insights from HCLTech

9:15 a.m. - 10:15 a.m. (ET) March 2

Solving data expandability issues through cloud

Storing large amounts of data can pose significant challenges for organizations. As the volume of information grows, managing and processing it becomes more difficult, leading to decreased efficiency and productivity. The solution to this problem is to turn to the cloud. By storing data on remote servers, organizations can access their information from anywhere, at any time, and on any device. With unlimited storage capacity that can be easily scaled, the cloud provides a solution for banks facing growing data requirements. Furthermore, cloud integrators can offer advanced security measures and regular backups, making data loss and downtime a thing of the past. HCLTech ensures banks can focus on what they do best while ensuring their data remains secure, accessible, and scalable. Say goodbye to data expandability challenges and drive your business forward with the cloud.

Join this session to dive deeper into this with insights from HCLTech's Ananth Subramanya, Wells Fargo's Steve Hagerman, Truist's Bryce Elliot & Fifth Third's Jude Schramm

Ananth Subramanya
Ananth Subramanya

Senior Vice President, Digital Business, HCLTech

Bryce Elliott
Bryce Elliott

EVP & CIO for Wholesale and Enterprise Payments Technology, Truist

Jaron Murphy
Jaron Murphy

Decisioning Technologies Partner, FICO

Jude Schramm
Jude Schramm

EVP & CIO, Fifth Third Bank

Steve Hagerman
Steve Hagerman

Chief Technology Officer, Wells Fargo

HCLTech participants

Subramaniam Baskaran
Subramaniam Baskaran,

SVP, HCLTech

Case studies

Business challenges

  • Lack of communication / unengaged applicant had led to 5.20% withdrawal of mortgage application
  • 61% of negative verbatim of borrowers attributed to 5 large categories
  • Highest contributor being hand-offs that increased the cycle time

HCLTech solution

The 3-Lever BPM process with a focus on Risk Management, Lean Process, and Automation principles was implemented as below

  • It covered four steps – identify, evaluate, design and deliver
  • Level 1 to level 4 process maps were created
  • 3-lever analysis across 7 stages was performed
  • Documented the process in question end-to-end

Benefits

  • 17 Opportunities identified on Lean re-engineering & automation
  • Cycle time reduction:
    • 20% on account of lean re-engineering
    • 25% on account of automation
  • Estimated reduction of AHT by 25%

Business challenges

  • Drop in the number of tickets being handled per agent due to high ticket volume
  • Increased AHT because of complex system landscape that the agent had to scan to respond to customer queries
  • Longer processing times for electronic requests raised by customers

HCLTech solution

  • Introduced pilot “how to” chatbot to support contact center
  • Enhancement of chatbot to interact/integrate with bank applications
  • Publishing external text chatbot
  • Embedded external speech chatbot into existing telephone IVR

Benefits

  • Chatbot Corpus as an enabler for the next chatbot phase
  • New customer communication channel enabling clients to make contact from the comfort of their desktop/ laptop/ mobile
  • Reduction in Resolution Time Variances, resulting in a more reliable and consistent performance

Business challenges

  • High cost
  • Non-availability of skills
  • Non-alignment to enterprise blueprint's tech stack

HCLTech solution

  • Migration was completed in 4 months for 200 KLoC from COBOL to Java, on a custom framework implemented by the customer and deployed on webMethods
  • HCLTech proprietary tool ATMA was used to convert the COBOL code to Java. There was no data modernization in scope.
  • The existing functional test cases along with a custom tool created to verify the data produced were used to validate the functional equivalence
  • 100% source code was modernized using ATMA
  • The modernized application was deployed on the existing webMethods server
  • A custom tool was used to compare the outputs produced after the data from the legacy environment was copied over to the target testing environment

Benefits

  • Lowered TCO
  • 70% cost savings compared to a rewrite approach
  • Applications moved to tech stack for which there is sufficient skill pool Solution aligned to enterprise's tech blueprint

Business challenges

  • Achieve regulatory compliance, reduce reputational risk, and avoid penalties/sanctions by the regulator
  • Build real-time data aggregation platform using streamlined and automated processes
  • Improve straight through processing through process re-engineering
  • Enhance automation opportunities and standardize the Customer Due Diligence (CDD) and compliance process
  • Augment digital capabilities to periodically assess customer risk profile

HCLTech solution

HCLTech proposed and developed a verticalized solution using Pega aimed at digitalizing and streamlining the compliance management for AML/CFT.

  • Delivered 360-degree view of the customer and their product holdings enabling aggregated view for quicker resolution
  • Digitalized the end-to-end Customer Due Diligence (CDD) and transaction review process, including task/case creation, assignment, approval routing, etc.
  • Provision automated dashboards for Suspicious Activity Reporting (SAR) and ad hoc reporting provision
  • Enabled AML/CDD business rule-driven automation powered by artificial intelligence

Benefits

  • Value realized through cost optimization >$1 million per year
  • Improved customer response resulting from a 40% reduction in resolution time
  • Enabled end-to-end automated workflow routing and approval
  • Provided a 360-degree view of customer and product holdings
  • Improved staff efficiencies by 25%

Business challenges

The client was facing the following difficulties around the KYC process while onboarding customers especially due to updated GDPR guidelines

  • Increased cost of KYC
  • Fragmented and single-use data sources were the main reason for high costs and longer processing time
  • Issues with auditability and duplicity of data
  • Establishing compliance with stringent GDPR and other data privacy laws

HCLTech solution

Created a blockchain-based digital identity platform that brings individuals, organizations, ID providers, credit bureaus, notaries, etc on the same platform.

  • Validated KYC data available on a shared blockchain ledger in hashed form, masking it from misuse.
  • Self sovereign identity for a customer where he/she can generate proof without sharing the actual age using custom Zero-Knowledge Proof (ZKP) functionality
  • Created a single source of truth for customer data eliminating fragmented databases

Benefits

  • Saving cost and time involved in the KYC process
  • Custom ZKP-based blockchain solution helped in compliance with GDPR and other data privacy laws
  • Improved customer experience by removing the need to submit the same documents multiple times
  • Open opportunities for new business models/products built around digital identity

Business challenges

  • Achieve efficiency through automation in a highly complex process. Automation was difficult due to fragmented functions
  • Manage unsustainable peak in accounts payable and record to report area during month end resulting in backlogs
  • Faster bot development

HCLTech solution

  • Automation of 20+ processes (50+ bots) in finance & accounting operations in 8 months
  • Implementation started with 5 processes and the remaining use cases were added in the product backlog in subsequent sprints
  • Strong governance and reporting capability around bots

Benefits

  • Clear visibility on the operations of bots in BAU
  • Strong program management and visibility on each milestone deliverable during implementation
  • Minimum bot downtime during business hours
  • All bots developed within 8 months
  • 33% committed productivity achieved

Business challenges

The customer was receiving more than two billion alerts daily that were technical in nature, making it difficult to derive business insights and generate value. The loosely monitored day-to-day operations posed operational risks and the regulatory body demands remained unmet. Other challenges included:

  • Improving the outage Mean Time To Repair(MTTR) and the visibility on the end-to-end payments process flow.
  • Tracking business metrics against each step of the business workflow to make the process more efficient.
  • Lack of system stability leading to lower overall customer perception.

HCLTech solution

  • Created an end-to-end payments monitoring dashboard and breach alerting system, along with the development of a bespoke toolkit to monitor VIP client files
  • Enhanced risk management by maintaining a dashboard and alerting payments engine, access channels, and supporting applications

Benefits

  • Efficiency and customer perception: Clear visibility of the end-to-end process, exceptions, and impact of changes. Historical performance reporting
  • efficiency compared across time periods
  • Stability: Alerting relevant parties in real-time of any potential breaches - providing visibility and prompting action on potential issues before the occurrence
  • Regulatory: Full visibility and tracking of the payments process lifecycle including clearing cut-off times to proactively mitigate regulatory impact risks

Business challenges

  • Enhance the quality of delivery
  • Reduce the cycle time between releases
  • Gain efficiencies for cost optimization
  • Introduce collaborative working methods and processes
  • Transform work culture into using agile methodology

HCLTech solution

  • Developed Release Automation Framework (RAF) through enterprise DevOps tools like JIRA, Bitbucket, Jenkins, SonarQube, Ansible, and CA Release Automation.
  • Migrated source code from different version control tools to a centralized source code management system – Bitbucket

Benefits

  • Provided one-click automation by using JIRA (within JIRA you can monitor your build and deployment status).
  • Time for building the package and deploying it to the SIT and UAT environment had been decreased without any manual intervention.
  • Standard framework for deployment, by using which applications can be on-boarded and automated within a few minutes

Business challenges

  • Leading Australian mortgage and home loan lending bank was processing 200+ million pages annually that were received from brokers or customers via email and fax
  • Bank received almost 30% of documents as duplicates leading to high mortgage application processing time
  • Manual errors due to a large volume of duplicate documents

HCLTech solution

  • HCLTech performed POV on the bank’s samples to showcase de-duplication and ensured it met all requirements w.r.t security, DevOps, and AWS compatibility
  • HCLTech’s AI-based Exacto was implemented to remove up to 99% duplicates (60 Mn Docs)
  • Hosted as a web service on AWS via DevOps CI/CD which had an auto-kill switch enabled to switch to existing flow as and when required
  • Auto-Scale enabled to add more infra in case of an increase in volume
  • Integrated with some of the cloud-native services such SQS, AWS RDS, Key Management Service, Secret Manager, Artefactory, and security modules
  • Integration with the bank’s Document-as-a-Service for document comparison

Benefits

  • 33% duplicate documents identified & deleted
  • 99.2% accuracy with 0% false positives
  • 33% reduction in OPEX
  • Almost 60 Mn duplicate documents were removed automatically

Business challenges

  • Huge manual effort to download packages, configuration, and installation from Actimize share drive customer environments
  • High risk of configuration integrity as it can be altered by anyone having access to target servers
  • No streamlined system to manage vendor packages

HCLTech solution

  • Automation of downloads, configuration & installation of Actimize packages leveraging GIT and UCD
  • Creation of a Unified Configuration Generator for installers across all Actimize solutions
  • Implemented a Version Control System to eliminate redundant versions of packages

Benefits

  • 91% automation achieved
  • 55% reduction in the cost
  • Cycle time reduced from 60 minutes to 5 minutes
  • Automated notification on the status success/failure of installation and upgrades