As revealed in a recent Gartner’s CIO Survey, 49% of banking and investment CIOs indicated they plan to increase their investments in automation in 20214. This is largely in response to changing customer expectations, caused by fintech disruptors offering excellent banking experiences. To meet these new customer demands, banks are now adopting new technologies, especially those that enable IA. For example, a leading bank decided to crack down on credit-card fraud using the latest technologies. It created an ML programme to automatically identify fraudulent transactions. Through this ML programme, the bank increased the number of resolved fraud cases by 30% in less than four months. However, the employee and customer experience worsened. As the system identified growing volumes of potentially fraudulent transactions, employees had huge numbers of cases to investigate. Their workload increased drastically, and they had less time to spend supporting customers. To address this issue, the bank redesigned its end-to-end fraud identification process and introduced IA technologies. While the previous ML system had automated 20% of the process, the IA team succeeded in automating more than 80%. The new solution added:
- a smart workflow tool to help employees perform investigations and collect evidence
- RPA to automatically block credit cards in likely cases of fraud
- automation of all event-triggered communications, and
- a chatbot to answer customers’ questions and update them on the status of the fraud resolution process.
Overall, IA enabled the bank to increase the number of resolved fraud cases by 70%.
In another example, a forward-thinking building society wanted to explore the opportunity to use IA to extend its automation capability to handle unstructured data and complex decision-making. Baringa defined and delivered a pipeline of IA solutions while establishing the client’s IA capability and operating model. Using language processing technologies, we:
- identified themes in customer and employee feedback to give staff and customers greater influence in the business
- enhanced due diligence by automating the investigation of adverse media related to customers
- improved horizon scanning by automating the process of identifying and reporting on regulatory trends in the industry, and
- improved the automated routing of complaints.
Using vision technologies, we:
- automated the review of customer communications to ensure quality and compliance. Automating this process enabled the QA team to focus on more complex activities
- redesigned the lease review process to automatically scan leases from the land registry for clauses that impact lending decisions, rather than relying on conveyancers to spot potential issues, and
- introduced intelligent contract management by enabling employees to access information contained within third-party contracts via automated queries.
Overall, the building society achieved 200% ROI on its investment in IA solutions within twelve months.
4 P. Redshaw, “2021 CIO Agenda: A Banking Perspective,” Gartner, 10 November 2020.