Understanding the Need for Agility and Scale in the Banking Industry

Understanding the Need for Agility and Scale in the Banking Industry

  • Pawan Jadhav
  • August 31, 2021
Category: Intelligent Automation, Banking, AI

In the wake of the pandemic, business leaders in every industry are recalibrating; how do they spend resources to not only recover from the past year but prepare for a future that seems equally unpredictable? This is a particularly acute challenge in the banking industry, where two words matter now, more than ever: agility and scale. Businesses that are truly “future-proof” are moving from relying on people to relying on processes – often driven by software and digitization. Forward thinking means eliminating the risk of human error, while redistributing tasks that allow humans to be more strategic, customer-facing and focused on value-add initiatives.

Scaling in a cost-efficient, smart way means understanding the advantages of Intelligent Automation (IA) and embracing new technologies to gain a competitive edge. In a recent update of its Automating with Intelligence study, Deloitte noted a significant uptick in the adoption of intelligent automation in 2020, with 73% starting their IA journey—a 15% increase over 2019. Of those, 37% are piloting (1–10 automations), 23% are implementing (11–50 automations), and 13% are scaling (51+ automations).


The Banking Industry: How Do They Address Agility and Scale?

In recent times, two prominent themes concern the banking industry. First, banks faced a rapid (and unexpected) need to scale to handle the demands of the SBA PPP loan program, which distributed 12 million loans worth 800 billion dollars in a very limited amount of time. A second consequence of the pandemic for banks is an inevitable revenue recession. An excessive and rapid release of reserves has not only affected current profits but overall revenue outlooks; according to Fitch Ratings, core profitability will likely remain pressured for the near future.

In retrospect, banks were tasked with multiple big-picture strategic efforts as a result of the pandemic; not only did they have to change and scale to a completely unpresented economic landscape but they also had to pivot quickly to manage and optimize in an environment that continues to change. Helping banks to not only survive, but stay ahead of competitors, requires a unique digital operating model to address challenges, that – frankly – require support beyond what’s possible by utilizing a human workforce alone. What characteristics should an effective digital operating model for banks have?


6 Characteristics of a Digital Operating Model that Addresses Agility and Scale

The digital operating model should:

  1. Be able to support anything, anytime, anywhere in the world.
  2. Be super, optimal and efficient. Every bank and company is fighting for resources; wasting time on resources is not an option in the current environment.
  3. Be agile and able to dynamically scale. It should consume and offer everything as a service.
  4. Be able to support self-service. It should make sure your customers, partners and vendors are happy.
  5. Be able to provide end-to-end visibility across the systems and processes.

For more information about the power of the digital operating model, sign up for our webinar, “RPA 2.0 for Banks: Implementing Hyper-Automation.” You’ll learn more about what constitutes a digital operating model and how its power was demonstrated in five different customer use cases. Visit www.lateetud.com for more information.