Krishna Kumar, Business Head Australia, Newgen Software Technologies Pty Ltd

A case study of creating operational excellence using the latest digital technology

By Krishna Kumar, Business Head Australia, Newgen Software Technologies Pty Ltd

In the prevailing era of the experience economy, online customer experience is paramount and determines better business outcomes for a bank. Digital transformation also means getting the technology mix right. Addressing operational inefficiencies and enhancing customer experiences through strategic technology deployment is critical during their digital transformation journey.

Where do you start—from process automation to machine learning to Artificial Intelligence? Banks are experiencing a technology-choice overload.

While every bank is different, a case study from a Fortune 500 multinational Japanese bank that managed this digital transformation illuminates one path to success.

The problem – Need for Digital Transformation

This bank operates globally across consumer, institutional, and investment banking and faced numerous operational challenges. Inefficient workflows, dated document management systems, and fragmented manual processes led to delayed onboarding times for institutional customers, which reduced customer confidence and resulted in a poor experience for those institutions. The bank’s reliance on legacy hindered real-time tracking of critical data and transparency in the status of requests, leading to a sub-par customer experience.

Traditional vs. Modern Approaches

Traditionally, banks have attempted to address these issues through a piecemeal approach in automation solutions of integrating disparate fintech applications for processes, document management, and adhering to compliance requirements. While these methods might offer short-term relief, they often lead to an enormous technology debt, create operational silos, and disjointed data flows. A holistic approach & strategy that leverages all elements of a modern technology stack presents a more effective solution.

A Holistic Approach to Digital Transformation

To overcome this, the bank implemented a single comprehensive digital banking platform that provided process automation, content management, and AI-powered intelligent document processing capabilities. This approach facilitated and accelerated the onboarding of institutional clients.

Key features of this digital transformation included:

● Modular Architecture: The low-code automation framework which allowed for scalable operations without disrupting existing processes.

● Multi-Channel Initiation: Supported transaction initiation from diverse channels, including web, email, and in-branch services, across various functions such as trade finance, deposits, and loans.

● AI-Powered Document Processing: Utilising AI/ML and intelligent extraction technologies to ensure document accuracy, processing over 500 paperless transactions daily.

● Real-Time Monitoring and Reporting: Providing insights into process performance, KPI monitoring, and regulatory compliance through comprehensive dashboards and auditing tools.

● Enhanced Service-Level Tracking: Improving customer satisfaction by closely monitoring service levels and turnaround times.

● Strong Integration: Seamlessly connecting with multiple banking systems, ensuring data integrity and compliance with regulatory requirements.

Transformation Impact and Benefits

The implementation of this digital platform yielded significant improvements in the bank’s operations:

● Cycle Time Reduction: Processing times were reduced to just 15 minutes.

● Regulatory Compliance: Efforts to ensure compliance were reduced by 32%.

● Processing Efficiency: Operational efficiency increased by 70-80%.

● Cost Savings: Streamlined business rules and version control led to a 30% increase in cost savings.

● Employee Productivity: Enhanced workflows and reduced manual tasks boosted workforce productivity, leading to better customer experiences.

● Transparency and Control: Improved control over processes and enhanced accountability.

The Future of Banking with AI and Automation

As we look into the future, the banking sector has embraced the noise surrounding generative AI (GenAI). It is already adding significant value through hyper-personalized customer experiences and optimized operations.

A recent McKinsey report1 suggests that GenAI will help banks globally add between $200 billion and $340 billion in value annually. By leveraging GenAI, banks can achieve faster processing, harness the power of data, and tailor services to meet individual customer needs. However, banks must be mindful of data security concerns, biased information, and transparency issues. Partnering with capable technology providers is essential to maximize the benefits of GenAI while avoiding potential pitfalls.

The transformation journey of this multinational Japanese bank underscores the importance of a unified digital approach to overcome operational inefficiencies and enhance customer satisfaction. But the job’s never done as the banking industry continues to evolve. The adoption of GenAI and automation together is now front and center of every decision in a digital transformation agenda and is pivotal in driving innovation and delivering superior customer experience.