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Banking Industry

Vaishnavi Reddy

February 28, 2021

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Being one of the highly competitive and rapidly transforming industries in the world, banking is continuously driven by evolving business models, novel technologies, and the best customer satisfaction and retention. The advent of Fintech has forced traditional banks and financial institutions to repeal their original business practices and indulge in using diverse technologies to match the competition. Furthermore, as most of the players moved towards computerization of the mountains of information they possessed, data security and privacy has emerged to be the prime concern, which in turn led the government to enforce much stricter compliance and regulatory measures and more substantial penalties.

The upcoming Fintech industry could dominate some of the most profitable areas of mobile banking, process automation and low-cost customer-centric support systems. Goldman Sachs predicted that these start-ups would account for upwards of $4.7 trillion in annual revenue being diverted from traditional financial services companies. Moreover, with the entry of many new players, the power has slowly shifted to the hands of customers who demand swift round-the-clock online services, instant approvals, competitive rates, and personalized customer support and services. According to a global survey by MuleSoft, Fifty-seven per cent said opening a bank account should take no longer than one hour, and 47% said a mortgage application should take no longer than one day.

Additionally, as the shareholder expectations constantly weigh upon banks as they try to balance the increasing costs of operations and infrastructure with low returns on investments and equity and flattened interests, the banks today are forced to enhance their profitability.

On the other hand, it has become increasingly evident that 53.9% of the employees in a ‘person-person interaction system’ experience the highest level ‘EB’ (Emotional Burnout) Syndrome which is the Exhaustion Phase and 69.3% of the employees show symptoms of the middle level of EB namely the Resistance Phase. As quite a few bank employees regularly leave the office to meet with prospective customers, not having access to their organization’s data on their mobile devices can delay the process unnecessarily and ultimately hinder sales efficiency. As their jobs call for enormous interpersonal energy, constant information research, customer assistance, lengthy approval mechanisms, they exhibit low service performance and efficiency.

47% of mobile banking users are millennials, which shows that the easiest way to attract new users is by establishing a simple path to banking via mobile. Although every banking institution today has a presence on the app stores, they are deemed redundant due to lack of useful features such as chatbots, hybrid integration of customer support, and often lead to users having to visit banks physically for every service. Customers often suffer through long waiting times, being switched from person to person and being put on hold indefinitely. The most common complaints relate to mortgage/loan problems, checks/funds bouncing, hidden fees, documentation queries and approval statuses. Moreover, according to an Accenture Financial Global study, around 49% of customers in banking directly relate customer service to loyalty.

Audit reporting while following SOPs is a necessity for preventive vigilance and fraud identification. It requires unrestricted access to records, assets and personnel and minimizes conflicts between internal and external audit teams. Common limitations amongst these teams include delay in responding to questionnaires and submitting write-ups due to a lack of comprehensive information regarding their audit partners. Almost 80% of the audit failures are caused when the auditor fails to gather sufficient evidence in areas such as asset valuation, asset ownership and management representation.

And this calls for a unified system that can incorporate thousands of digitized structured/unstructured files under one roof and intelligently obtain information via cloud/traditional platforms. SubtlAI provides a wide range of solutions that can be directly embedded in the existing systems. The institutions can securely upload any number of documents like source documents, loan and mortgage documents and bank compliance checklists, group them as per their classification norms, and provide custom access to each of their users i.e., employees. The information can be accessed in a query-based format, and SubtAI will intelligently assist users with Standard Operating Procedures and Audit Processes within minutes.

With such a system in place, each of the branches in banking is guaranteed much faster collaboration and verified decision making, automatically decreasing the approval times, staff-hours, paperwork costs and employee effort. The employees can utilize their time in delivering high-quality solutions by referring to many more documents in much lesser time and onboard new customers with much more accessible and shorter procedures. The banks can also reduce the size of their compliance teams and establish single reference points to eliminate delays for verification, regulatory reviews, and efficiently provide their data to their auditors, all while reducing their processing time and costs by a considerable margin.

Subtl-Bots are a handy extension to your document mine, which can revolutionize the live customer support and engaging customer service. They will reduce the dependence on customer service executives who, in turn, divert the customers to other departments for complaint resolution, which makes the entire process exhausting and causing unprecedented delays for the customer in need and consuming the staff-hours of that specified department. The Subtl-Bots will avert the entire process by directly helping the customer with accurate information the bank chooses to provide within minutes and only raise a complaint flag if the situation requires human intervention.

And SubtlAI does not build its information hub just by a keyword/semantic search or summarizers; instead, it embodies a cognitive search that thoroughly understands via natural language querying and all of the above to provide the most relevant outcomes to document searches. It also largely cuts down information redundancy and storage. SubtlAI ensures better employee satisfaction and engagement, the more comprehensive reach of banking services, personalized and smarter bot to cater to every customer’s needs, and also helps in the institution’s analytical needs. Finally, this solution will accelerate ROI and diminish many underlying costs by integrating a unified and intelligent information database in its Information Management System.

References:

Vaishnavi Reddy

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