Banking on low-code automation: 5 ways banks are going digital-first
New cryptocurrencies, cybersecurity threats and a global pandemic are pressuring the banking sector to adapt and fast.
Here is how banks worldwide are using low-code automation to do just that.
Traditionally, banking has always relied heavily on manual and paper-based processes. But then, two years ago, our lives got turned upside down. One minute, life was normal, and with very little notice, everything went forcibly digital and remote. Suddenly, trips to the bank or even to ATMs were no longer a given, nor part of everyone’s daily lives. Banks, like every other company, had to adjust and adapt.
Going digital-first in the banking sector
Digital transformation in the banking sector is hard. Moving from paper to digital is a challenge, especially in such a short time.
But the issue wasn’t as much going digital, as many retail banks already offered some kind of package for online or home banking. The actual goal is to go digital-first: before, mostly young customers preferred online banking. Now, virtually every customer needed it.
How much do banks spend on IT?
To truly be on top of the change, banks and financial institutions also need to bring innovation into the table. This meant retail banks needed to make digital banking rapid, agile, customisable, and transparent. And this is where low-code automation played (and still plays) a crucial role.
5 ways banks are leaning on low-code automation
It is undeniable that the banking landscape has changed, and by the looks of it, permanently. Retail banks need to be more agile in order to compete with so-called “neobanks”, that have come strong with improved apps, more online services, and extreme changes in customer support.
Luckily, traditional banks can rely on low-code automation to speed up the transition, as there are already several low-code platforms directed at banking. See what you can build with low-code platforms.
How is low-code automation transforming the banking landscape?
1. Faster loan application, processing, and disbursement
If you have applied for a loan in the “before days”, you probably know what we mean when we say applying for a loan, from the customer’s viewpoint, is excruciating. Dozens of papers and signatures for this and that, several weeks to get approval, and countless trips to the bank meanwhile.
From the bank’s viewpoint, it is not better either. Loans normally entail manual or semi-manual processing, management, scheduling and disbursement- a several-person job. With low-code automation, the entire process can be simplified, from the loan application form to the qualification criteria verification, not even mentioning risk assessment, where tens of factors come into play. A faster loan application also entails larger processing capacity. It’s a win-win for business and customer.
2. Paper-free document movement
Usually, document movement between branches or from a branch to the head office will take somewhere between a couple of business days to even a couple of business weeks. During this time, what happens in the background, i.e., while the customer waits, is the physical relocation of said documents, processing, analysing, verification, as well as communication of the different process stages. Low-code automation can reduce business days to minutes or even seconds.
3. Enhanced fraud detection
Fraud is a big deal in banking and other financial services. According to a recent report by Booz Allen Hamilton, anti-money laundering analysts typically employ 75% of their time in data collection. With 15% spent on data entry and organisation, only 10% of an analyst’s time is devoted to analysis. Using low-code automation, it is possible to relay repetitive yet important tasks to software, freeing human skills to where they are most needed – such as data analytics.
4. Contact and support centre optimisation
We don’t need to point out how important customer support is in banking, but if we did, we’d say it is vital. People like quick and accurate answers when money is involved. Using low-code automation, banks can quickly and seamlessly implement chatbots that handle routine queries related to bank statements and transactions. Inquires that require decision making are escalated to the human customer support team. A simple triage in traffic can make the difference between unsatisfying and stellar customer experience-it is the power of Human Centric Process Automation.
5. Streamlined mobile everything
Nowadays, the norm is mobile banking. Money transfers, consulting bank statements, loan repayments, and so on, are all done via mobile, and we expect apps to work flawlessly. For this, a banking app needs to be quickly and safely updatable, upgradeable, and obviously scalable. From the customer viewpoint, ease of use and simple and visual interfaces are two key aspects as well. Low-code and low-code automation can help banks and financial services deliver functional and easily customisable native mobile apps fast that cater to customer needs.
In summary, low-code automation provides banking with the agility, scalability, and speed they need to improve operations, while reinforcing security and compliance. The results are happier customers, reduced operational costs, and improved productivity.
Low-code automation is leading change
If you are still unsure of how low-code automation can totally change banking, this is the right place. At Near Partner we’ve welcomed low-code development with open arms, and we understand the reservations a traditionally conservative business, such as banking, might have when embracing digital transformation. Is it secure? Is it intuitive? How can change happen seamlessly? These and many more questions were once in the minds of all our now very satisfied customers who have partnered up with us. However, to succeed in today’s decentralised work environment, one needs to embrace change as it comes. And those who have, are thriving.
Get in touch with Near Partner and let us figure out how we can help you and your business start, grow, or adapt to the digital world. Even better, let’s discover it together. Look at some success stories of partnerships with Near Partner. Meanwhile, check our Project Cost Simulator