In today's digital world, fast decision making is king, and banks are finding that being able to automate their operations is a critical tool in competing for more market share. The ability to price loans, create risk profiles and make approval decisions at the drop of a hat is becoming key, and manual processes, the need to rekey data and the use of outdated technology like spreadsheets are falling by the wayside.
"Often, back offices have thousands of people processing customer requests," wrote McKinsey researchers Joao Dias, Debasish Patnaik, Enrico Scopa and Edwin van Bommel. "This high degree of manual processing is costly and slow, and it can lead to inconsistent results and a high error rate."
This issue of error-prone manual processes is forcing banks to look for solutions that will meet their needs efficiently, effectively and quickly so that they can remain competitive in the marketplace – and fintech automation tools offer the answer.
Being able to react quickly and successfully to changing regulations and trends is one of the most important goals of today's finance industry. According to Sean Park, the founder, chairman and CIO at a New York-based venture-capital firm called Anthesis Group, automation in banking is a response to the newer generation's propensity for technology and automated tools.
"[U]biquitous mobile computing, an exponential growth in data, and continuous advances in machine learning and artificial intelligence will transform finance into an always-on, algorithmically driven industry," Park told Business Insider.
There are several key benefits given to banks that can harness the power of fintech automation. The McKinsey researchers reported that if banks take full advantage of the digital approach, productivity levels in the back office and in customer service capacities may increase by as much as 50 percent. In addition, much smaller operating units can perform value-adding tasks like deal origination and financial reviews. The incorporation of data into back-office processes becomes easier, and this alone will change how organizations operate.
The trend toward banks becoming more automated – and using tools like DealPoint to make the loan approval process faster and smarter – is something that the experts at Brilliance Financial Technology are very familiar with. Brilliance, which was named one of the top 10 finance and technology solutions providers in 2016 by CFO Magazine, knows how to help banks transform their operations to take advantage of new technologies and automation tools. For instance, DealPoint allows banks to automate pricing decision once a certain threshold is met, allowing for faster time of decision and reducing the need for manual reviews.
Get in touch with Brilliance today for more information.