How automation is redefining user experiences in finance

Zoran Vasiljev Categories: Business Insights Date 09-Oct-2023 5 minutes to read

Continually living under the pressing demands of progress, one word has been echoing louder and clearer in recent years through the business world: automation. What once seemed like the future we only wished and hoped for is now a palpable present transforming whole industries. Yesteryears, businesses firmly rooted in traditional approaches are now at a crossroads – automation promises a bright future of unparalleled innovation and efficiencies while other road leads to – obsolescence.

How Automation Is Redefining User Experiences In Finance BLOG NEWS

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    Automation is especially pronounced in industries where user experience lies at the core of the business. One such example is finance. But what exactly is automation in finance? In essence it is a process of using artificial intelligence to automate manual tasks, specifically those tasks which can be executed more proficiently via technology. It involves setting up a series of workflows and utilizing AI to instigate predefined actions. The financial digital renaissance promised by automation is not only a nice-to-have item. It's becoming a bare necessity. Yet also – a cultural shift, a movement that redefines operational approach, service delivery, and customer satisfaction. Yes, we are peeking into an age where automation doesn't just support business – it's becoming the very heart of it.

    Financial services: The automated era of personal finance

    In the ever-evolving technological landscape, we witness a paradigm shift in the financial services sector. We might even name it the dawn of the automation era in personal finance. Let's welcome this future and discover how automation is seamlessly intertwined with every step of a consumer's financial journey.

    Personalized financial advice

    Traditionally, receiving financial advice was once a bespoke service reserved only for those with enough leverage to afford wealth managers or personal consultants. Thanks to automation, tailor-made financial advice can be available to everyone. Fueled by enormous amounts of data, advanced algorithms can analyze an individual's financial behavior, make precise predictions, and offer clear insight. But if you're thinking, "My monthly budget app can do that too" – think again. This is about forecasting financial futures and gently nudging users toward worthwhile investments that might help them avoid severe financial troubles. Main key? Of course – personalization. Every piece of advice can be specifically curated and tailored to ensure the client feels like they have their financial advisor at their fingertips.

    Streamlined operations

    The backend of financial services is a rich and complex tapestry of documentation, data, and transactions. To be on top of all this, you need to have a grip on everything. However, when automation comes into play, everything becomes streamlined and efficient. Faster and smarter, too. Routine tasks are handled precisely, errors are minimized, and processes are up to speed. Automation tools can sync data in real time and ensure departments work with accurate and updated information. When you mix in artificial intelligence, you are really at the top. The outcome is a quick system that is constantly evolving, learning from every transaction and interaction, and can refine its operations. It is a real game changer for the financial industry.

    Instant services

    Today, customers want instantly perfect, seamless user experiences. In a world where we need just one click to purchase a product and get instant feedback, waiting is passe.

    Financial services were historically known for their lengthy processes; now automation is also changing that as well. Need a loan? It's just a few clicks away, thanks to automation-driven workflows. Want to invest in stocks? Automated platforms analyze market trends in milliseconds and offer you real-time advice. Here is a brave new world where consumers can meet their financial aspirations without any bureaucratic hassles.

    Banking: Beyond traditional transactions

    The halls of traditional banks, with their queues and tellers, are swiftly being replaced with interconnected and seamless digital experiences. Let's explore the facets of this financial metamorphosis.

    Self-service platforms

    The digital age is also slowly but surely transforming bank tellers to a few taps on the screens. Self-service platforms are revolutionizing the banking business, offering customers previously unprecedented control over their transactions. Banking hours have, luckily, become a thing of the past, and the platforms fortified with intuitive interfaces and 24/7/365 availability have empowered customers to do the banking on their terms, whether it is a funds transfer at 2 AM or a quick loan during vacation time.


    Chatbots and virtual assistants

    Besides the few taps on the screens, we are getting increasingly used to AI-powered chatbots – competent, knowledgeable, fast, and – don't require coffee breaks. These new-age assistants are revolutionizing industries and are designed to provide instant solutions 24/7. At their core is machine learning, from which they can evolve and offer each customer a tailored experience. Dissatisfied customers become a relic of old times.

    Predictive analysis

    The best way to describe predictive analysis is like a barista who starts to prepare your regular coffee just the way you want it the moment you walk in. Today, banking systems can harness the power of data analysis to understand and anticipate customer behavior without the customer even realizing it. This results from sifting through tons of data, recognizing and applying patterns, and expecting customers' needs. It sounds perfect, especially if the customer faces the potential overspending.

    Automated onboarding

    When everything goes right from the beginning, it sets a positive stepping stone for the clients – and banking is no exception. Instead of the traditional tedious chore of opening a bank account, banks can now offer a fast, paperless, and hassle-free onboarding experience. All thanks to automation. This seamless approach saves time and resources and plays a significant role in customer relationship management.

    Insurance: The rise of proactive policies

    Ah, insurance! Once a beacon of endless paperwork and slow bureaucracy. However, it can really thrive if it adopts the cutting edge of technology. Insurance is traditionally rooted in caution and prevention, but if automation is leveraged and implemented, it can deliver proactive, personalized, and highly efficient products and services. Claims could be processed in the blink of an eye, and AI might even help prevent fraud. Let's discuss what might happen should the insurance take the modern approach.

    Claims processing

    The digital revolution can significantly shift how claims are processed. Manual inputs, lengthy waiting periods, and, most importantly, human error might become a thing of the past. Automated claims processing can bring the fresh air of accuracy and speed. Insurers will be able to swiftly validate the claims using AI-driven technology, thus significantly reducing approval times from weeks to minutes or hours. Besides improving customer satisfaction, it will also largely reduce operational costs.

    Risk assessment

    With the introduction of AI and machine learning, risk assessment might also be facing seismic shifts. Algorithms will be able to analyze vast datasets from various areas. For example – monitor weather patterns for property insurance or analyze medical history for life insurance. AI might become an independent right-hand man who can predict potential risks accurately. Not only will that help companies to ensure better policy pricing, but it will also help develop a tailored plan for individual needs.

    Chatbots for queries

    Customers' pressing questions often demand instant answers, and the insurance sector needs to adapt accordingly. Imagine AI-driven assistants who are available around the clock to answer simple queries but also to guide policyholders and assist in the initial stages of claims processing. These chatbots might heavily impact customer satisfaction and make the insurance process less daunting.

    Fraud detection

    Fraudulent claims are, unfortunately, a staple in the insurance industry. Causing financial losses and increased premiums, they were something company heads were dying to get rid of. The savior might be AI and machine learning. Together, they can act like vigilant sentinels, scanning for real-time red flags. They might identify patterns across numerous claims or thoroughly assess a single application – ensuring that only genuine claims pass through—perfect safeguards for both the insurer and the insured.

    Overarching impacts: The larger picture

    With automation redefining sectors, we must zoom out and observe what happens at the macro level across industries. We are witnessing the immense impact of automation dominating three main areas – customer experience, cost efficiency, and data-driven insights.

    Enhanced customer experience

    With the digital landscape expanding, customers' expectations also grow. Automation caters to customers' needs for speed, accuracy, and personalization. As a result, brands that adopt automation will witness a surge in customer satisfaction and, most importantly – loyalty. Result? Strengthened market position and delighted shareholders.

    Cost efficiency

    With automation, tasks that once required a lengthy human effort and resources are now seamlessly executed by machines, which leads to significantly reduced operational costs and demand for human intervention. In the long term, this positively impacted minimizing manual errors and optimizing resources with the result of – the business continuously operating at its peak efficiency. So, the upfront investment in technology yields exponential returns throughout the company.

    Data-driven insights

    Oceans of big data are the unsung heroes of modern businesses. However, without automation, data wouldn't be appropriately utilized – advanced algorithms draw patterns and provide insight that guides essential business strategies and ensures the company keeps its competitive edge.

    Pursuing innovation and efficiency often causes friction between automation and human touch. As we progress, it is paramount to remember that machines, while efficient, don't have the understanding and genuine empathy only humans possess. Therefore, it is essential to strike the right balance between tech and touch – and ensure our automated processes are grounded in genuine interactions and human values. This will ensure that businesses don't lose their soul. After all, in a world dominated by technology, it lets us remember that only humans can forge a lasting bond and craft authentic experiences for – other humans.

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    Zoran Vasiljev Author
    Zoran Vasiljev Partner and President Americas & APAC

    Zoran is a serial entrepreneur and C-level executive, with over 26 years of international management and operational experience across different industries.