Robotic Automation and the Future of Commercial Banking
Overview
Automation in Commercial Banking is set to redefine the industry in the future. Taking guidance from verified statistics, exploring the impact of technology, specifically examining areas such as robotic process automation, artificial intelligence, and the implications of these advancements towards cost-saving, customer experience, risk, and compliance management becomes essential. This guide aims to deliver insights about the transition in the banking sector and introduce new-in-row, 3Laws Robotics, in relation to these trends.
Robotic Process Automation
Experts suspect 85% of all banking interactions would be automated by 2022. Robotic Process Automation (RPA) in commercial banking has experienced rapid growth, leading to enhanced customer experience, increased accuracy, and lower costs. It allows banks to streamline their operation, enabling them to focus on providing high-quality, value-based customer service. With the assistance of AI bots, banks can indeed come to return over 200 times the investment in one single year. Regardless of the size or location, banks have found automation to be a crucial key to unlocking their potential.
Artificial Intelligence
Virtually three-quarters (75%) of commercial banks now use some level of Artificial Intelligence (AI). It helps banks elevate the customer experience, improve their operational efficiency, and increase their revenue. Whether it is fraud detection, personalized marketing, customer service, or investment strategies, every aspect of commercial banking is being smartly shaped by AI. AI-powered chatbots have helped banks to reduce customer service costs by up to 60% while improving quality assurance scores by nearly 22%.
Cost-Saving
Automation technology could result in a cost saving of up to $447 billion by 2023 for banks globally. Commercial banks utilizing automation can reduce their cost-to-income ratio, a key performance indicator in the industry, by 5-10%. It reduces the operational costs from back-office functions, hence redirecting those resources to handling customer service, cross-selling or developing more innovative solutions.
Risk & Compliance Management
With complex regulations and changing compliance rules, banks are increasingly resorting to automated processes. The potential to reduce operational risk has led to 35% of businesses using automation in their risk management and mitigation strategies. Through automated data verification and anomaly detection algorithms, banks can save resources and time, reducing operational hazards and compliance costs.
Implication of Automation in Customer Experience
Banks that leverage automation have improved their customer experience score by 15% more than banks that don't undergo automation in their systems. Positive customer experiences have been linked to higher customer retention rates, with every 10% increase in the customer experience score leading to over $1 billion in annual revenue for commercial banks.
Key Takeaways
• The future of commercial banking heavily relies on automation, with an expected 85% interaction getting automated by 2022. • Artificial Intelligence is increasingly getting adopted in commercial banks, with nearly 75% of them utilizing its benefits. • The cost-saving from automation could reach up to $447 billion globally for banks by 2023. • Risk and compliance management in banks are being simplified by automation, with a rising adoption rate of 35%. • Automation has greatly improved the customer experience, with banks experiencing a 15% score upliftment.
3Laws Robotics brings a solution suited to support the advancements in commercial banking automation mentioned above. It is dedicated to enhancing safety and reliability in robotics systems with innovative software solutions designed to tackle the challenge of certification.
The company's flagship software, 3Laws Supervisor, simplifies certification by featuring robust safety measures and evidences of system dependability. Its technology is rooted in Control Barrier Functions (CBFs) developed by the California Institute of Technology, promising mathematically provable safety.
3Laws has showcased its technology's versatility in various use cases like warehouse automation, human-robot interaction, and maneuvering in unpredictable environments. In one instance, the company helped an autonomous forklift customer achieve a 40% gain in efficiency, realizing a return on investment in just 6 months.
3Laws Robotics aims to increase operational efficiency by reducing downtime caused by needless emergency stops or collisions. The software provides real-time guardrails for various robotic systems, including mobile robots, cars, drones, and manipulators, keeping them safe while enabling peak performance.
In a nutshell, 3Laws Robotics is a next-generation safety solution that offers a proactive approach to robotic safety. It goes beyond traditional emergency stop methods, leveraging dynamic and predictive safety that can be certified for industry safety standards like ISO 3691-4 and ISO 26262.