HOW AUTOMATION HAS REVAMPED THE BANKING INDUSTRY
Tags: testing, devops
Published: 2023-05-12 06:43:11

Whether we talk about front-end or back-end operations, the advancement in digital technology has dramatically scaled the banking sector. As technology proliferates, automation has become the new normal globally. It has made so many tasks in different industries less resource and time-intensive that every sector has adopted it.

Fortunately, automation hasn’t left the banking industry untouched and has dramatically impacted how banks operate for their customers, employees, and overall ROI. Considering that banking is an industry with heavy dependency on agility, precision, and accuracy, automation is a blessing in disguise.

[Mobile app automation testing](https://www.headspin.io/solutions/mobile-app-testing) has resulted in numerous customers using mobile banking to make transfers, seek customer support, and check their balances. Many banking businesses have invested in Artificial Intelligence and other advanced analytics to make maximum automation an everyday reality.

While it comes with its unique set of challenges, automated processes such as banking domain application testing have reduced error rates, improved customer experience, and freed up employees’ time for high-value tasks. This post will look at how automation has revamped the banking industry. Let’s dive right in.

**7 WAYS IN WHICH AUTOMATION HAS REVAMPED THE BANKING INDUSTRY**

Remember the days when you dropped cash right outside the bank in a designated container, and they sucked it up via a tube? The money was piled on a desk handled by an employee who talked to customers through an intercom. Cool, isn’t it?

It was just one example of how the innovative nature of the banking industry used to be a big thing. But if we talk about the next one, automation certainly takes the lead. Here are some top ways in which automation has revamped the banking industry. Let’s take a look.

**1. AN ORGANIZED AND WELL-SORTED DATA ACCESS**

Sorting, organizing, and managing financial data can make or break a business considering the sensitive nature of the information. When banks automated data processes, it offers streamlined and secure customer access and gives employees the necessary sorted details to boost their productivity.

By eliminating laborious and repetitive tasks, employees get a chance to concentrate on core tasks, whereas mundane tasks accomplish themselves with negligible supervision. Automation contributes to a robust IT infrastructure that further accelerates productivity.

**2.  PERFORMANCE OPTIMIZATION**

When a banking business automates critical tasks, it eliminates the risk of manual errors and avoids losses for a bank. Moreover, advanced analytics such as better scoring techniques, updated data sources, and enhanced data quality further offer their own sets of unique benefits.

**3. RISK MANAGEMENT AND MITIGATION**

Every latest loan operation strictly complies with individual risk appetite. A strategy based on automation also discourages subjective interpretation. Banks increase the responsiveness of their interface when they rapidly implement automation. This way, they can avoid repetitive losses and problems such as credit card fraud.

Plus, by reducing human error, automation eliminates multiple inconsistencies and helps banks achieve high precision and accuracy. After all, why wait for drastic consequences to a mistake when you can stop them in the first place?

**4. IMPROVE AND STREAMLINE WORKFLOW**

Automation helps streamline and improve a company’s workflow by enabling accountants to indulge themselves in complex tasks as automation takes over routine tasks. Usually, it takes somewhere around two or three weeks to compile documents and spreadsheets. The financial close cycle takes more time without automation if we count reviews and approvals. But when employees can free themselves from manually matching and balancing transactions, the workload gets more manageable.

**5. SAY NO TO DATA BREACHES**

When a system is under attack, it increases its chances of getting affected by data breaches. Not only do they cost banks in terms of revenue and regulatory files, but they also breach the customer’s trust, which can be catastrophic in the long run. Automation helps banking institutions stay ahead of such cyber attacks and ensure customer security at the same time. After all, since banks store sensitive information, they are top in the hit list of hackers and attackers.

**6. HELLO, PAPERLESS PROCESSES!**

Handling tonne paperwork is a headache for anyone. Automation leads to creating data-driven rules that pave the way toward completely paperless working. Electronic banking applications no longer require extensive paperwork, from data storage to filling forms and other customer services. Another issue it keeps at bay is for employees to deal with the interpretation of tricky handwriting.

**7. FASTEN THE PACE OF ACCOUNT RECONCILIATIONS**

Ensuring the reconciliation of all balances is a highly-repeated process. Banks have an end number of transactions every day, and manual processing of spreadsheets increases the reconciliation turnaround. Correcting imbalances and dealing with investigations extend that timeline.

But when banking automation software comes into the picture, you can significantly shorten the time taken for post-transactional activities. Banks no longer have to take a lot of days, weeks, or months to a part of close, thanks to accelerated reconciliations.

**CONCLUSION**

The most valuable thing all these advantages add up to is an increased competitive advantage. Combined with cloud access, the banking sector can bring in decision-making and applications all in one place.

Besides all the benefits mentioned above, automation enables banks to implement changes quickly, use dynamic pricing, and proactively manage their customers’ no wonder automation has become the future of the banking industry and many others.

The modern-day customer is busy 24/7. They don’t have much time to visit the brick-and-mortar branch very often. When banks automate as many things as possible, customers can carry out most of the banking-related tasks from the comfort of their homes.

Moreover, if a bank is using a leading automation testing platform, banks don’t have to worry about customers finding bugs in their mobile apps. Moreover, it frees up the time for testers to step into the customer’s shoes and thoroughly check for any possible remaining bottlenecks. Before you test banking applications, it is vital to jot down priorities and preferably choose a platform that covers every aspect of testing under a single umbrella.

_**Originally Published:**https://edumanias.com/business-news/how-automation-has-revamped-the-banking-industry/_