Modernizing BFSI Operations with Digital Process Automation | Tech Mahindra

Modernizing BFSI Operations with Digital Process Automation

Over the years, process improvement in organizations has, in a way, become synonymous with digital transformation. To meet the continuously evolving customer needs and become more approachable simultaneously, businesses started focusing on digitizing operations, leading to the innovation and evolution of digital process automation (DPA).

In the banking, financial services, and insurance (BFSI) sector, we can today observe a matured employment of DPA. It acts as a catalyst in key banking features like mobile payments, mobile banking, insurance and claims, trading, and asset management. With the multitude of services that providers offer – not to forget long-term engagement and customer retention – digital business process automation has certainly proved to be a game-changer in making the whole spectrum more customer centric.

The Transformation of BFSI Operations Through Digital Process Automation

As the number of digital-only customers increased across the world, businesses leveraged DPA to redefine the customer journey. Let’s understand how it makes way for digital transformation in banking while making each process more profitable and frictionless.

1. Increase in Efficiency

DPA automates routine tasks and streamlines workflows, reducing manual intervention and speeding up processes. This leads to faster turnaround times and increased productivity. Let’s understand this with an example. 

When a customer is onboarded, employees repetitiously perform tasks like document gathering, cross-referencing, accuracy verification, and error correction. Wasteful follow-up communication is another challenge that slows down process. With process automation, low-skilled tasks can be automated, accompanied with process update notifications for customers or reminders when an action on their end is required. As a result, the time of task completion can be reduced while accuracy is maintained through automated rule-based actions.

There are tons of other processes like loan underwriting, payroll processing, membership renewal, claim processing that can be automated and streamlined, increasing efficiency as well as productivity.

2. Cost Reduction

One of the prevailing reasons for the interest in digital process automation is cost savings owing to process automation. Automation technologies like artificial intelligence, robotic process automation, and machine learning enhance and accelerate processes while eliminating the risk of human error. As a result, BFSI organizations can reduce costs associated with manual processing, such as labor and paper-based processes. This can lead to significant cost savings in the long run.

3. Improved Compliance and Reduced Risk

Compliance checking is an important component of BFSI digital transformation which helps assess the as-is process in contrast to a reference model to check for compliance deviations. It enforces standardization and policies so employees can work in conformance with standard rules and procedures. And since process automation leaves no room for human error, the risks of data anomalies and security issues are also eliminated.

4. Enhanced Customer Experience

DPA can help BFSI organizations improve customer experience by enabling faster, more accurate processing of requests and applications. This can lead to higher customer satisfaction and loyalty. Moreover, AI-powered chatbots enable self-service, allowing for round-the-clock, faster support, which is a key differentiator for customer-centric businesses and tech-savvy customers.

5. Product and Service Innovation

DPA places high importance on customer data, which allows replacing siloed processes with more important innovation strategies that accelerate business growth. It provides the foundation for innovation by freeing up resources to focus on higher-value activities, such as product development and customer service. This can help BFSI organizations stay ahead of the curve in a rapidly evolving market.

DPA also uses process mining algorithms to identify customer trends and recurring data, which then enables creating customized product offerings and services marketed through personalized campaigns.  For example, based on the spend data and past transactions by customers, the centralized framework can be used to offer credit options to the ones who qualify.

Tech Mahindra’s DPA Offerings for BFSI

The BFSI industry is associated with prevalent challenges like fraud attempts, data inaccuracy, service unavailability and others. Realizing the need for automation solutions that can address and eliminate such challenges, Tech Mahindra has developed a proprietary automation framework called UNO (Unified NexGen Operations) that includes automation models for back-office operations and live agent interactions.

We have been a provider of transformative solutions for over 200 clients, including the leading names in the BFS sector in Australia, Americas, Europe, Middle East, and the rest of the world. Our banking solutions span across services like asset and wealth management, lending, investment banking, retail banking, and cards and payments.

Tech Mahindra’s sophisticated enterprise ecosystem technology platform is focused on enabling organizations to think how they function and identify process gaps to radically reengineer processes through implementations, including:

  • Automation of repetitive tasks by deploying digital workforce
  • Instant insights of process models
  • Seamless mining of process gaps
  • Business process optimization to increase efficiency and reduce operational cost
  • Analytics to create customized marketing campaigns and customized products/services
  • Blockchain for identity management, transaction payments, and contract management
  • Digital imaging (OCR/ICR) to extract text/numbers from images
  • KYC as a service
  • Integrated real-time view of business, risk, operations and compliance

Our DPA solutions are part of Tech Mahindra’s NXT.NOW framework that focuses on the use of groundbreaking technology with the potential to transform CX. While we don’t follow a one-size-fits-all approach, each of our offerings is well-defined for unparalleled customer experiences.

About the Author
Prabhjinder Bedi
Chief Growth Officer - Tech Mahindra Business Process Services

Bedi has over two decades of experience involving launching start-up ecosystems, scaling up businesses, and successfully taking products and services to market across industry verticals, spanning telecom and media, hi-tech/new economy, financial services, retail and consumer goods, manufacturing, and life sciences.More

Bedi has over two decades of experience involving launching start-up ecosystems, scaling up businesses, and successfully taking products and services to market across industry verticals, spanning telecom and media, hi-tech/new economy, financial services, retail and consumer goods, manufacturing, and life sciences. Having spent over 16 years at Tech Mahindra, Bedi is currently responsible for taking our existing and new-age service offerings to global markets and adding meaning to our shareholders, partners, and customers. Bedi is a bachelor’s in Engineering from IIT, Benaras and holds Master of Business Administration (MBA) from IIM Calcutta.