Blog· 3min October 26, 2023
Explore the transformative journey of hyper automation in payments with a spotlight on how integrating new technologies within the context of a platform approach can streamline payment processes, reduce operational costs, and ultimately enhance customer satisfaction.
The technological landscape within the banking sector continually evolves, with a keen focus on automating processes to enhance efficiency and customer service. The emergent notion of hyperautomation, however, is a significant leap forward in this space. It amalgamates disjointed systems and transforms banking processes from end to end, employing technologies such as machine learning, robotic process optimization, and low-code application development.
The impetus for hyperautomation in banks is driven by three key factors: growth, cost reduction, and risk mitigation. These are the day-to-day considerations of bank executives aiming to carve a sustainable and progressive banking ecosystem. Hyperautomation, at its core, is a comprehensive digital transformation strategy. It aims at automating a broad spectrum of business processes while digitally augmenting those that require human input. Unlike a monolithic entity, it mandates the coordinated implementation of multiple tools. Importantly, the objective is not to replace human workers but to seamlessly integrate them into the process. Implementing hyperautomation within the core banking system significantly reduces processing time, minimizes operating expenses, and shifts the focus towards fostering customer relationships. The technology also finds its utility in payment processing, account management, and automating certain back-office functions.
The real challenge for financial institutions is plotting a realistic and financially sound pathway to implement hyperautomation. Here are three key aspects essential for success:
1. Customer-Centric Outcomes:
Hyperautomation goes beyond merely deploying advanced technologies. It’s a tool to deliver enhanced experiences and value to customers — be it by onboarding new customers faster, bringing innovative products to market quicker, or processing loan applications in a way that meets customers’ needs. The lens of hyperautomation should focus on how technology and data can replace cumbersome and inefficient processes that frustrate both customers and employees, which is a good starting point for a hyperautomation journey.
2. Robust Digital Foundation:
Siloed data is the enemy of hyperautomation. It's vital to transition from on-premises data warehouses to cloud-based platforms, connecting and integrating traditionally siloed data.
3. Operational Agility with Risk Minimization:
The human element in workflows, while essential, can be a source of errors. Compliance requires human oversight and customers often desire direct engagement, even when digital solutions are effective. Done right, hyperautomation delivers the efficiency and insights that advanced tools offer while retaining the human touch for crucial oversight and customer value. This results in enhanced operational agility and reduced risk.
In the realm of banking and financial services, the pace and accuracy at which transactions are handled represent a cornerstone of operational efficiency and customer satisfaction. A 'platform approach' to payments is emerging as a critical enabler of the hyperautomation journey. This approach encapsulates an integrated, cloud-native infrastructure that not only streamlines payment processes but also serves as a nexus for deploying advanced automation technologies. It unshackles banks from the constraints of legacy systems, offering a scalable, agile, and data-driven ecosystem. The platform becomes the enabler of end-to-end automation, facilitating real-time data analysis, predictive analytics, and seamless transaction processing. By harnessing a platform approach, banks can transcend traditional operational boundaries, reduce costs, mitigate risks, and deliver superior value to their customers.
Diving into the practical aspect, hyperautomation's journey is nuanced. At Form3, our internal systems exhibit a promising landscape for hyperautomation. Our approach towards monitoring, alerting, and incident management entails a blend of multiple tools that interact seamlessly, channeling very targeted human activity once machines have accomplished a bulk of the work. For instance, our rules-based alerting system monitors for specific discrepancies such as time of non-response, number of items in a queue, or absence of a report, informing the Incident Manager and On-call Engineering teams to evaluate the outcomes and take necessary actions.
The aspiration for our cloud-native payments platform is to evolve into a self-learning entity that can autonomously discern the significance of alerts. For instance, recognizing patterns in alerts which either self-diagnose issues or better yet, understand client-facing impacts and take proactive corrective measures. The envisioned scenario is where a sequence of alerts within a specific timeframe triggers a known corrective action based on historical data. Although programming these combinations into the platform is time-consuming, it’s certainly achievable.
The desired outcome? A self-sufficient platform that assimilates inputs from alerts, decisions from individuals, learns from these interactions, and autonomously executes the learned responses, including client updates.
Looking further, the prospect of machine-to-machine communication could unveil a realm where Form3 customers not only learn from their own payment processing experiences but from others too. The platform’s ability to consolidate, analyse, design, and automate across the spectrum, sharing these learnings with all, is a tantalizing prospect, and exciting view of where payments are moving to.
As we navigate the path of hyperautomation, we are starting to shape how it can mutually benefit both Form3 and our clientele, marking the onset of a new era in banking technology where hyperautomation is at the core of operational excellence and customer satisfaction.
Form3 are revolutionising the way payments work from channel to payment scheme. We have developed an enterprise-grade, managed, payment technology platform that integrates across multiple payment schemes, and connects into your payment systems with ease.