According to the World Economic Forum, financial companies can automate 43% of their regular tasks. Several industries have benefited from the productivity and efficiency of automation, and the finance industry is one of them. Finance is among the most critical industries in the world. It is responsible for managing and regulating the flow of money. It’s essential to use automation to keep up with the dynamic demands of the industry. This blog post will outline some of the benefits of automation in the finance industry.
Table of Contents
Shorter Loan Approval Cycles
Applying for a loan can take anywhere from one day to several weeks, depending on the loan type and lender. However, most consumers want the approval procedure to move more quickly, whether applying for a personal line of credit or a small business commercial loan.
Automation can help speed up the loan approval process by reducing the time it takes to gather information and decide. Automation software can help collect the information the loan officer needs to approve or decline a loan application. With this technology, the lender can make a final decision within hours of receiving the data instead of days.
For example, if you request a loan from digital lending institutions like MoneyAsap, everything is done online—you don’t have to visit a physical location. Your loan will also be approved faster, which means you can get the money more quickly, making it the ideal choice for borrowers who need quick loans. You’ll also be matched with various vetted lenders willing to work with borrowers with varied credit scores.
Improved Communication
Finance is a highly competitive industry where professionalism and communication are essential. It is also a complex industry, with many different products and services, making it difficult for customers to fully understand what they’re buying and even harder for employees to keep track of everything.
With automation, financial institutions can improve communication by sending automatic reminders and updates to customers and employees to keep everyone up-to-date with the latest changes. You can also customize messages whenever you need to.
A Wider Selection of Products and Services
Banks only offered a limited selection of products and services in the past. However, with the advent of automation, banks can now offer a broader range of products and services because banks can now provide more personalized services.
For example, if you’re a small business owner, you can apply for a loan online and get approved in minutes. You can also use automation to find the best interest rates on savings accounts and get personalized advice on managing your finances.
Reduction of Human Errors
Humans naturally commit mistakes, especially when they’re under pressure. This can lead to costly errors in the finance industry. For example, one alleged innocent human mistake cost Citibank $900 million. Not only will an error of this size cost a financial company to lose money, but it will also affect its reputation.
Automation can help to reduce these errors by automating repetitive tasks. For example, the software can automatically check for errors and correct them if you fill out a loan application. This way, you can ensure that the information you’re providing is accurate and up-to-date. Automation can also help to prevent fraud by flagging suspicious activity.
Removing Hiring Bias
Men have long dominated the finance industry. Women hold only 24% of finance leadership roles because the industry has been male-dominated for centuries. In 2020, Accenture dove into this issue and found that financial organizations with diverse employees had better performance. Modern consumers found diverse and inclusive companies more appealing, causing 10% of them to switch to these companies.
With automation, financial institutions can remove this bias from the hiring process. Automation software can help screen candidates equally, regardless of their gender or other personal characteristics, eliminating human discrimination. This way, you can ensure that the best candidate is hired for the job.
Faster Customer Service
The finance industry is known for having slow customer service. This is because most financial institutions still rely on manual processes. For example, should you wish to open a new bank account, you must go into the branch and fill out a bunch of paperwork. Then, you must wait for someone to process it, which can take days or weeks.
With automation, you can open a new bank account in minutes. Banks can also use automation to get consumers’ questions answered quickly. For example, if you’re wondering how much interest you’ll earn on your savings account, you can ask a chatbot, and it will give you an instant answer.
Fraud Prevention
The finance industry is also at risk of fraud. In fact, 46% of organizations surveyed by PwC stated that they experienced fraud or other economic injustices in the past year. Financial institutions deal with large sums of money and sensitive information. As a result, they’re prime targets for criminals and hackers.
Fortunately, automation can help to prevent fraud. For example, banks can utilize machine learning to detect suspicious activity. Automation can also help to verify the identity of customers quickly and efficiently. This way, you can ensure that your financial information is safe and secure.
Final Words
In conclusion, automation can benefit the finance industry in many ways. From reducing human errors to preventing fraud, automation can help financial institutions run more efficiently and effectively. As the world becomes increasingly digital, financial companies must embrace automation to stay competitive.
Author: Harrison Jones has been a freelance financial reporter for the past 6 years. He knows the major trends in the financial world. Jones’ experience and useful tips help people manage their budgets wisely.
