How To Use Low-Code To Eliminate Manual Processes In The Banking Sector

With evolution in digital technology and mobile solutions, it is crucial to modernize various processes in the banking sector. Although many processes may require human interference and supervision, many manual processes in the banking sector may be repetitive,  time-consuming and can hence be automated. Automation can help streamline various tedious processes that would have otherwise had to have been performed manually by an organizational employee.

Performing certain tasks manually may increase the risk of human error. Although human error is almost unavoidable in certain situations, the potential risk associated with handling large sums of money, maintaining customer databases and monitoring client relationships should be avoided at all costs.

Therefore, it is greatly beneficial for banking institutions to eliminate certain manual processes that may result in these errors. Recent studies have shown that 66% of employees view automation as being instrumental in reducing data errors.

How Can Low-Code Eliminate Manual Processes In The Banking Sector?

Low-code is defined as a visual approach to application and software development that utilizes visualization features, on-screen guidance and drag-and-drop tools to empower citizen developers with little to no traditional coding experience to create custom, robust applications. Studies have shown that 84% of enterprises have turned to low-code solutions to reduce strain on IT resources, increase speed to market, and facilitate digital transformation.

Low-code automation tools enable citizen developers to automate various manual processes without having to write long lines of code.  Low-code automation has a wide variety of benefits that banking institutions can take advantage of, including creating automation features with little to no coding experience, creating workflow automation processes using drag-and-drop tools, reducing dependency on software developers, and empowering citizen developers to create their own automation tools.

Banking Processes That Can Benefit From Automation

1) Fraud Detection and Prevention

Fraud detection and prevention is defined as a set of procedures and processes that are undertaken by banking institutions to avoid transactions, claims, requests and other finance-related actions from being undergone under false pretenses.

Although the rise in technological advancements has helped modern organizations advance overall operations, the introduction of complex technology may make financial institutions vulnerable to fraud and theft. Furthermore, it can be extremely time-consuming and impractical for financial institutions to monitor each transaction individually.

Therefore, it is crucial for banking institutions to consistently introduce automated fraud detection technology into their day-to-day business processes. Automation technology can utilize powerful artificial intelligence and machine learning tools to carefully supervise, analyze and detect fraudulent transactions. Furthermore, implementing powerful fraud detection and prevention technology can help your organization substantially improve levels of customer trust.

2) Know Your Customer (KYC)

Know Your Customer (KYC) is a mandatory process that every financial institution must undergo to identify and verify the identity of a particular client as well as analyze the suitability and risks associated with them. Although the KYC process is crucial for the safety and security of your financial institution, it may require a substantial amount of financial and human resources if performed manually.

However, low-code automation tools can help your financial institution automatically collect clients’ financial information, screen documentation for any variances from a set of predetermined standards and analyze data for verification. This process will not only help your financial institution complete vital KYC processes much faster than ever before but will also help your organization reduce the usage of human and financial resources.

3) Loan Approvals and Processing

One of the most crucial processes that any financial institution has to undergo daily is processing and approving loan requests. This process usually requires organizational employees to access and carefully evaluate client documentation for various loan verification processes. However, this process can often be error-prone and time consuming.

Therefore, low-code automation tools can access, analyze and survey documentation submitted by clients to determine whether or not they are an ideal candidate for a loan, survey a client’s current financial state and generate loan confirmation documents that can also be automatically sent to clients.

Automating loan approvals and processing can not only help make your financial institution substantially more efficient and productive but can also drastically improve client satisfaction levels by processing loans much faster than before.

4) Processing Account Closure Requests

Closing a client’s account is one of the most tedious and time-consuming processes that a financial institution has to undergo is the account closure procedure. The account closure process is usually substantially delayed due to a client’s non-compliance. This usually requires an organizational employee to follow up with the specific client for the submission of certain crucial documentation and information.

However, low-code automation technology can help your financial institution send clients automatically generated notification reminders at regular time intervals as well as to conduct various procedures such as transfer funds, alter interest charges, cancel standing payments and much more.

5) Credit Card Applications

Financial institutions usually spend a significant amount of time processing credit card applications, which can consequently result in a weeks-long waiting period for clients. However, this can result in reduced levels of customer satisfaction which can ultimately impact your organization’s profitability. However, low-code automation solutions can help your financial institution automatically collect client data, conduct background credit score verifications and authenticate eligibility using a predetermined set of criteria. This will allow your organization to expedite the overall credit card application process and satisfy client requests much faster.

Planet Crust’s Corteza – Automate Various Manual Banking Processes using Automation

Planet Crust’s low-code platform is an open-source software builder that enables people with little to no coding knowledge to build complex apps and instantly deploy them. The platform has an automation engine that makes the process of automating processes and tasks extremely easy.