Automation in Banking
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The document discusses the significance of automation in banking, emphasizing its role as a strategic imperative for financial institutions to innovate and enhance operational efficiency. It outlines benefits such as streamlining processes, improving compliance, and enabling better data management through semantic technologies. Additionally, it mentions Hexanika's fintech solutions that address data sourcing and reporting challenges for regulatory compliance.
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Automation in Banking
- 1. Automation in Banking BankingandAutomation- the twotermsare synonymoustoeachother in the same waybread is to butter- alwaysclubbedtogether.We live inadigital age andhence,noinstitutionof the global economycanbe immune fromautomationandthe adventof digital meansof operations. In fact,banks andfinancial institutionswere amongthe firstadoptersof automationconsidering the humongousbenefitsthattheygetfrom embracingIT.The reasonwhy banksandfinancial institutionsrapidlyembracedITisthat theiroperationswhendonemanuallytake upa lotof time andeffortfromtheirstaff as well- makingthemdoroutine activitiesandsearchesoverand overagain,and inthe process,missingthe chance tomove upthe value chain. Automation enablesastandardizedaudittrail,makingsure the rightpeople have accesstothe rightsystems and guaranteeingthatfinancial institutionsadhere toindustrystandards,while reducingthe needforcost involvedinkeepinglegacyITsystemsrunning. Automationisfastbecomingastrategicbusinessimperative forbanksseekingtoinnovate1 - whetherthroughinternal channels,acquisitionorpartnership.Implementingintegrated automationsolutionswillenablebankstostreamlinethe verytasksthatare holdingthemback – removingmanual interventionandensuring thatsimpletasksare handledwithspeedand agilitywithouterror. The financial industryhasseenasort of technological renaissance in the pastcouple of years. But thishas alsolead to a complex scenariowherethe problemhastobe addressed froma global perspective;otherwise there arisesthe riskof runningintoanoperational and technological chaos. Some of the advantagesof software automationare: 1 Source: http://www.computerworlduk.com/it-vendors/how-automation-can-help-banks-keep-pace- with-consumer-demand-3595833/
- 2. 1. ProcessAutomation: Workingina more abstract level allowsnotonlythe automation of technical processbutalsothe automationof traditional businessprocesses.Decision engines,riskbased pricing;defaultpredictionandfrauddetectionare examplesof processesthatcan be improvedunderthisperspective. 2. Semantics:The newwayof definingprogramminglanguages,basedonthe concepts that structure them,opensthe doorto knowledgerepresentation. 3. Less technical complexity:Again,the higherlevel of abstractionof the languagesallows to solve,automatically,muchof the technical detailsinheritedtothe differentsolutions. Thisautomationof complexityresultsinquality,safety,standardizationandother software features. 4. Multi-platform:Havingthe control of programming languages,the same development can be translatedintomultiple platformswithouthavingtoperformanew projectfor each newdevice. 5. Businessoriented:Once the programminglanguagesare closertothe business, developerscanfocusonprovidingasolutionfromthe businesspointof view andnot froma technical perspective.Italsobreaksdownthe traditional communicationbarriers betweenthe developmentareasandrestof the areas of the company. Enhanced Areas2 Fintechisworkingonmultiple areasinwhichthe automation canprovide advantages.We can grouptheminto three mainblocks:BusinessServices,OnlineServicesandDataManagement. BusinessServices:Meetingcustomer’snew demandsandthe productivityimprovementare objectivesthatare movingthe industrytoact overtheirmore traditional structures.Automation providesadvantageson: 1. Decentralization:To performthe decentralizationof services(call centers,back office…),theirapplicationsneedtomigrate toa webenvironment.This isamajor challenge because the systemsmustkeepthe traditionaldesktopapplicationsfeatures: safety,speedanduser-experience. 2. Portfoliomanagement:The automationof processes providesamore streamlined management.Onthe otherhand,the semanticsallowsaunifiedmanagementof heterogeneousportfoliosandthe integrationof externalones. 3. Compliance:Semantics,alongwiththe use of business-orientedlanguagesfacilitate auditanalysisprocessesandthe deploymentof itsdocuments. 4. Legacy systems:The higherlevel of abstractionprovidesastraightforwardwayto designinterfaceswithlegacysystems. Online Services:The emergence of new devices,the improvement of communicationsanda newdigital culture have made institutionsopentheirdoorsinorderto supplyamore interactive managementtotheircustomers.Againautomationprovidesbenefitsin thisarea: 1. Accessibility:Multi-platformcanmultiplythe waysof interaction. 2 Source: http://bheudek.com/2014/07/31/benefits-of-automation-in-fintech/
- 3. 2. Financial education: Semanticsgivesthe systemsdocumentationandvisualization capabilitiesfacilitatingitshandlingandunderstanding. 3. Personal management:As a resultof the previouspoints,the customercanperforma more personal managementof theirdataandassets.Asmentioned,the semanticsplay a major role inthe interactionwiththe customer. 4. NewBanking: Multi-platform, semanticsandprocessautomationenable newbusiness linessuchas personalizedoffers,paymentplatforms,crypto-currencies,proactive risk analysisandothers. Data management:A more interactive relationwiththe customerandthe new methodologies to processthat informationhave revolutionizedtraditional CRMtechniquesandthe whole data management.Automationbenefits: 1. Back office automation: The automationof back office meansthe automationof its workflows.The possibilitiespoweredbysemantictodesign“smarter”decisionengines, togetherwithprocessautomation,are keylinestoachieve thisgoal. 2. Reporting: Semanticsisincreasingbeingapartof reporting.XBRLisa goodexample. 3. Security: Processautomationenhancesthe securityindataprocessing. Automate to Innovate3 Automationisfastbecomingastrategicbusinessimperative forbanksseekingtoinnovate – whetherthroughinternal channels,acquisitionorpartnership.Implementingintegrated automationsolutionswillenablebankstostreamlinethe verytasksthatare holdingthemback – removingmanual interventionandensuringthatsimpletasksare handledwithspeedand agility,withouterror. Automationenablesastandardizedaudittrail,makingsure the rightpeople have accesstothe rightsystemsandguaranteeing thatfinancial institutionsadhere toindustrystandards,while reducingthe needforcostinvolvedinkeepinglegacyITsystemsrunning.Bybringingeverything togetherandconnectingloose ends,automationenablesthe bankingsectortodeliverthe cost- savingthat itneeds,whilesimultaneouslydeliveringvaluetocustomers. How does Hexanika make use of automation in Banking? Hexanikaisa FinTechBigData software company,whichhasdevelopedanendtoendsolution for financial institutionstoaddress datasourcingandreportingchallengesforregulatory compliance. Our software platformstreamlinesthe processof dataintegration,analyticsandreporting by cleaningandjoining the sourced datathroughsemanticsandmachine learning algorithms. It simplifies datagovernance processandgenerates timelyandaccurate reportsto be submitted to regulatorsinthe correct formats.Oursolutionsalsosignificantlyreduce the time and 3 Source: http://www.computerworlduk.com/it-vendors/how-automation-can-help-banks-keep-pace- with-consumer-demand-3595833/
- 4. resourcesrequiredforeveryday-regulatoryprocesses,andare robustenoughtobe implementedonexistingsystemswithoutrequiringanyspecificarchitectural changes. To know more about our products and solutions, read: http://hexanika.com/company-profile/ Contact Us USA 249 East 48 Street, NewYork,NY 10017 Tel:+1 646.733.6636 INDIA Krupa Bungalow 1187/10, Shivaji Nagar,Pune 411005 Tel:+91 9850686861 Email:[email protected] Follow Us