The processing of payments is an essential part of the services that banks provide to their clients; it is also very complex. Developments such as instant payments and increasing customer requirements have forced the industry to change the processing of payments drastically. This leads to serious challenges for banks and puts them under pressure.
Banks have improved many of their customer-oriented, front-end operations with digital solutions. Online banking offers enormous convenience to consumers, and the increase in mobile payments eliminates the need for cash. But too many bank processes still depend on people and paper. Back offices often process customer requests with thousands of people. This high level of manual processing is expensive and slow. This can lead to inconsistent results and a high rate of errors.
The integration of next-generation technology into digital platforms can save time and money by sorting payments and financial data. By connecting people, machines, and analytics via the latest technology, human decision making is incorporated into integrated platforms to prevent systems from manually operated errors or a repeated IT problem. The integration of AI into core banking platforms also enables rapid reactions to changes in the market.
By collecting and examining large amounts of information in real time, banks can sort more data than ever before. That will enable banks to provide custom reports and gain a thorough understanding of the individual habits of each customer. With AI, banks can now immediately detect fraud, predict which customers are likely to withdraw services, and gain a more in-depth understanding of the clients. By making full use of this approach, banks can often improve productivity and customer service by more than 50 percent.
The new back-office structure is not always reliable; it often falls short of what needs to be done over a certain period of time and lacks efficiency. Managers must build a new core back-office structure in which automation, processing, and analytics are compiled into an integrated system and process to change the way work is done fundamentally.