Automation – Where does it fit into the world of finance?
The mention of automation is still able to conjure up ideas of science fiction movies like “The Terminator” series. However, whereas large scale automation was once a thing of fiction, this is no longer the case.
Even the world of Hollywood, which produced many of the classic science fiction films, is being transformed by automation.
The same can be said for the world of finance where automation is helping to make human beings more efficient. Automating many of the industry’s processes and services can also be beneficial for customers as it can give them easier access to advice and information. The role of automation in finance is an interesting topic that is already high profile and many finance directors are already using such measures.
Automation already at work
In the finance industry, there are already many examples of automation being utilised. For instance, banks use bots to help with scanning loan applications and checking for inconsistencies. This is helping to improve the loan application process.
Software can also be used to look for indications of fraud. Any finance professional knows how important this can be when attempting to protect the financial security of a company.
The potential of voice-activated assistants
Most people are aware of the use of speech recognition technology in the world today. Even if it’s only asking Alexa to play some favourite music or using Google assistant to find a restaurant nearby. The more familiar people become with voice-activated assistants, the more industries are adopting them. This includes the finance industry.
One of the main areas where these assistants can be useful is customer service. For instance, some financial institutions and investment firms are linking their software with Alexa. This gives customers the opportunity to make simple requests, like balance enquiries, without having to speak to a human.
Customer service bots are also used to help deal with telephone enquiries. They can provide automated answers to questions and basic account information. However, human interaction is still required for any conversations which are more complicated.
Robotic investment advice
Another area of the finance industry where automation features heavily is the use of robot investment advisors. This involves the use of data by companies. They gather information about customers and use it to provide them with investment advice that is matched with their potential requirements.
This can all be done by using online bots to check customer account details and actions. Suggestions and advice are then tailored to that customer.
The future of automation in finance
Although automation is already proving to be valuable in the finance industry, there is still plenty of potential to unlock. Companies can utilise big data and AI to improve their efficiency and increase profits. However, some challenges exist.
- The cost of developing apps and investing in computing power is high.
- Voice recognition technology does not yet recognise individual voices, so there is potential for fraud. It’s use needs to be carefully monitored.
- Increased use of automation could have a negative impact on the number of jobs available in the financial sector.
- Too much automation in customer service can be an issue. This is because human interaction is the best option in many circumstances.
There are certainly some hurdles to overcome, with regard to fitting automation into the world of finance. However, these issues can be overcome by taking steps such as making use of Cloud computing to reduce costs and using systems that are a hybrid of human and automated. Advances in automation will continue to happen. The finance world needs to embrace this and make sure that the use of automation is optimised.
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Date Posted: January 22nd 2020
Posted By: Phil Scott