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Hyperautomation in banking: the business value of digital data intake

Hyperautomation in banking | EasySend blog
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5 minutes

What is hyperautomation in banking?

According to Gartner®

Hyperautomation is a business-driven, disciplined approach that organizations use to rapidly identify, vet and automate as many business and IT processes as possible. Hyperautomation involves the orchestrated use of multiple technologies, tools or platforms.

So what's driving this value?

The key is that hyperautomation combines multiple technologies that work together to completely automate a process. It's all about picking the appropriate processes to automate, then applying the proper combination of technologies to build intelligent automation solutions at scale. The sum is greater than its parts.

Benefits of hyperautomation in banking

Banks are under pressure to find ways to remain competitive and increase shareholder value. They need to be able to offer new services and products faster, with better quality, and at a lower cost.

They also need to meet strict, ever-changing regulations. Automation can help banks achieve all these goals.

Some benefits of hyperautomation in banking include:

1. Reduced processing time and costs

One of the main benefits of hyperautomation is that it can help to reduce processing time and costs. By automating the data entry process, banks can save a significant amount of time and money.

According to a study by McKinsey, "Hyperautomation can generate average cost savings of 45 percent for processing invoices and 50 percent for completing loan applications."

2. Improved customer satisfaction

Another benefit of hyperautomation is that it can help to improve customer satisfaction. By automating routine tasks, banks can free up staff to provide a better customer experience.

For example, one study shows that "70 percent of customers would be willing to use a chatbot to resolve simple inquiries."

3. Increased operational efficiency

Hyperautomation can also help to increase operational efficiency. By automating repetitive tasks, banks can improve their workflow and make their processes more efficient.

4. Enhanced compliance and risk management

In addition, hyperautomation can help to enhance compliance and risk management. By automating the data entry process, banks can ensure that their data is accurate and up to date which helps to reduce the risk of fraud and errors.

5. Boosted innovation and agility

Finally, hyperautomation can help to boost innovation and agility. By automating routine tasks, banks can free up staff to focus on more innovative projects. This will help to keep them ahead of the curve and maintain a competitive edge.

Why converting paper-based data entry is key to unlocking the potential of hyperautomation in banking

There is a huge untapped potential for automation in the banking sector, but in order to take advantage of it, banks must transform unstructured and paper-based data entry processes, which are amongthe biggest barriers to automation. In order to automate a process, banks need to digitize paper-based data intake. This is a crucial first step in automating any process.

According to a study by the International Data Corporation (IDC), "70 percent of organizations say that paper-based data entry is a major obstacle to automating their business processes."

The good news is that there are ways to overcome this obstacle. By digitizing paper-based data entry processes, banks can unlock the full potential of hyperautomation.

Source: https://www.gartner.com/en/documents/4001020
Source: Infographic: Hyperautomation Use-Case Prism for Banking and Investments

Hyperautomation in banking is a game-changer

Hyperautomation in banking is a game-changer that can help banks to improve customer satisfaction, increase operational efficiency, and boost innovation.

One of the most critical steps on the road to hyperautomation in banking is the conversion of paper-based data entry into digital data intake.

The banking sector still relies heavily on paper-based processes. In fact, a recent study found that 78% of banks still use paper for customer onboarding. This means that a lot of data needs to be manually entered into computer systems, which is time-consuming and error-prone. Moreover, paper-based processes are the antithesis of the real-time, digital world that banks are trying to compete in.

Converting paper-based data entry into digital data intake is, therefore, a key first step on the road to hyperautomation in banking. It is a prerequisite for other technologies downstream, such as robotic process automation (RPA) and artificial intelligence (AI).

Potential impact on the banking customer journey

According to Gartner Hyperautomation Use-Case Prism for Banking and Investment, there are only three areas of improvement that impact the entire customer journey, from sales and onboarding to customer service, back office processing, and risk management. Those are:

  • Converting paper-based data entry
  • Quality assurance (QA) processing
  • Compliance monitoring

Banks that transform those use cases will reap the benefits across the customer journey. 

The business value of digitizing paper-based processes

Source: Infographic: Hyperautomation Use-Case Prism for Banking and Investments

According to Gartner, converting paper-based data entry is ranked high to very-high on business value and technical and operational feasibility across the following criteria:

  1. Cost Reduction/Operational Efficiency (Very High) — The use case reduces the cost of a function or optimizes it to make it faster, simpler, or more accurate.
  2. Customer Experience (High) — Improves the end customer's experience with the bank or investment firm.
  3. Products and Services (High) — Makes it possible for the firm to offer new services to its clients.
  4. Sustainability (Very High) — Contributes to the sustainability of the organization, including business continuity, financial stability, and regulatory and policy compliance.

The business value of digitizing paper-based processes is clear.

Digitizing paper-based data entry in banking is, therefore, a transformational opportunity for the sector. It has the potential to enable banks to reduce costs, improve efficiency, and offer new products and services to their customers.

Paper-based data entry is ripe for disruption. What's more, there are already a number of technologies on the market that can help banks solve this problem.

No-code digital data intake platforms can empower banks to quickly transform paper-based data entry into digital data intake. These platforms provide a drag-and-drop interface that makes it easy to transform data collection processes at scale.

Not only will this help them to improve operational efficiency and customer satisfaction, but it will also enable them to offer new products and services that can drive sustainable growth.

The way toward hyperautomation in banking starts with digital data intake

Hyperautomation in banking is not just about automating tasks. It's about finding the right combination of technologies to create intelligent automation solutions at scale.

In order to unlock the potential of hyperautomation, banks need to invest in technology that can help them to convert paper-based data entry into digital data intake. By doing this, they will be able to take advantage of all the benefits that hyperautomation has to offer.

[.emph]Digitizing paper-based data entry processes has a high return on investment (ROI) and enables other technologies downstream, such as RPA and AI, enabling banks to embrace the full potential of hyperautomation.[.emph]

Gartner, Infographic: Hyperautomation Use-Case Prism for Banking and Investments, Nicole Sturgill et all., Refreshed 27 May 2022, Published 27 April 2021

Gartner is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.

Tal Daskal
Tal Daskal

Tal Daskal is the CEO and co-founder at EasySend. Tal is an expert on all things digital transformation in banking and insurance and is a passionate advocate for the paradigm shift towards no-code application development in the financial sector.