5 Tech Essentials to Boost Efficiency in Financial Services

“They already know what the consumer has gone through, and they can pull up a recent order by the customer automatically,” Viola said. “The caller has already been verified, so there is no need for them to repeat themselves or their information, and the agent can immediately begin helping the customer.”

Automation also boosts efficiency by minimizing the risk of mistakes in routine tasks. Plus, because automated processes run around the clock, turnaround times are accelerated; for instance, a report generated overnight could be waiting for an employee’s review in the morning.

According to McKinsey’s report, automation has the potential to increase productivity in banking by 2.8% of the industry’s annual revenues to 4.7%, which translates to an extra $200 billion to $340 billion.

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2. Big Data: Transforming Analytics

In financial services, data is king, and there are exabytes of it flowing through IT systems every day. Big Data technologies allow organizations to securely manage and analyze the staggering volume, velocity and variety of information and increase productivity.

Big Data analytics allows for quicker and deeper insights into business operations. Instead of manually gathering and analyzing data to understand trends, employees can lean on analytics to consolidate the information in real time and then use artificial Intelligence tools to surface insights that allow for better decision-making.

For example, Big Data can make sense of information on customer demographics and behaviors so that teams can be more efficient in tailoring marketing efforts and personalizing services. Also, large-scale data analytics can help automate the aggregation and reporting of transaction patterns for regulatory compliance, saving time and lowering the risk of errors.

The speed of analytics from Big Data makes it possible to switch from a reactive posture to one of proactivity and efficiency, allowing a bank to predict when a customer might default on a loan, for example.

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3. Artificial Intelligence: Improving Decision-Making

If data is the new oil, as it’s been said, then “AI is the refinery,” startup adviser Steve Ardire told BizTech. AI takes Big Data and applies algorithms to it to analyze it and provide critical insights for better, more efficient decision-making.

Two AI models, machine learning and generative AI, are notable in the financial industry. Machine learning can be used to increase customer satisfaction, for example. By more quickly assessing and approving loan applications, improving authentication, rooting out fraud and predicting customer demands, machine learning is streamlining the customer experience and saving organizations time.

Chris Marsh, director for S&P Global Market Intelligence, told BizTech: “Generative AI is being used for productivity and workflow management. It can give you a summary, recognize where you are in your workflow and proactively surface suggestions for what you should be thinking about at that point in the process.”

4. Cloud Computing: Adding Value Through Versatility

Financial services organizations are becoming increasingly focused on the cloud. A 2023 report by the Cloud Security Alliance notes that 98% of financial services organizations are using some form of cloud computing.

The trend is understandable. Hitachi Solutions explains: “We’re seeing continued momentum toward the cloud and modernization as a whole, driven by the need for resiliency, an industry-wide shift toward customer-centricity, and the urgency to both reimagine existing products and introduce new ones in order to maintain a competitive edge.”

Cloud-powered solutions can improve productivity in a handful of ways:

• By moving infrastructure to the cloud, IT teams no longer have to manage physical hardware, allowing them to allocate more time to strategic IT initiatives that enhance business operations and increase overall organizational efficiency.
• Cloud providers handle maintenance and updates of essential systems so employees can work with fewer interruptions.
• A united workflow for accessing applications and servers creates “a frictionless experience to your employees, so that they can go about achieving the next great leap in productivity,” VMware CEO Raghu Raghuram said in a keynote address.
• Cloud platforms can streamline compliance checks, reducing the time that employees spend on daily tasks.
• Cloud-based tools make it easy for teams to collaborate internally on projects and across departments.

Consider this use case: Because of its ability to scale up and down based on demand, enable omnichannel communication (via phone, email, text or chatbot), and reduce IT downtime, the cloud has revolutionized contact centers.

RELATED: The financial solutions and services that can improve the customer experience.

5. Mobile and Online Banking Tools: Empowering Employees

Digital tools are integral to today’s financial services, meeting the demands of customers for easy access to their accounts as well as the needs of employees, allowing them to engage with customers and manage accounts more effectively.

Jerone Abueva, a director of B2B mobility sales and business development at Samsung, writes that banks are behind the curve in adopting mobile tools for employees. She cites a sponsored study about modernization in banking and insurance that reveals banks are providing employees mainly with laptops and desktop computers, “two solutions actually limiting employee mobility within branches.”

“A better employee experience means a better customer experience,” she explains. “To accomplish this, banks must untether their employees and invest in flexible digital tools that boost their productivity.”

Abueva continues: “Technology that can move with employees, such as tablets, mobile devices and smart watches, can help put the right information at their fingertips to address customer needs promptly. … Digital tools enhance productivity and efficiency, enabling branch employees to serve more clients effectively.”

When discussing the benefits of mobile tech for employees, The Financial Brand co-publisher Jim Marous writes that it keeps employees connected, leading to greater work-life balance and higher productivity.

“Simplicity for employees, IT staff and customers will be the key to success” for financial services organizations, Marous writes. “Enabling increased productivity by providing new mobile resources has become a priority as work from everywhere is the new normal.”