Banking Industry eGuide for Automation

A Digital Re-invention Roadmap for the Banking Industry

Profiting from the wealth of opportunities from digital re-invention takes tenacity and foresight. Banking industry leaders, from the traditional to the born-digital, must transform into nimble organizations that think digital, act digital; deliver digital.

INTRODUCTION

Digital Re-Invention in the Banking Industry: A Wealth of Opportunities.

We’re living in an age of monumental transition. Business and technology are in lockstep, driving enormous change and forcing companies across all industries to adapt to an evershifting landscape where digital disruption has become the new normal.

The need for digital change in the Banking Industry has never been more urgent. Organizations that delay this transition risk losing customers to fierce competitors who have already mastered digital re-invention and overhauled their business to succeed in a digital-first world.

Traditional banks, constrained by legacy systems and outdated processes, are still finding their footing in an increasingly digitized industry, while the neo banks, once technology trailblazers, are grappling with how to thrive in an era of relentless change where they were once pioneers.

It’s not just Banking Industry changes driving this momentum. Surviving the aftershocks of the pandemic, war, and broken supply chains requires constant vigilance and the ability to predict and pivot when the next tremor hits.

Profiting from the wealth of opportunities from digital reinvention takes tenacity and foresight. Banking industry leaders, from the traditional to the born-digital, must transform into nimble organizations that think digital, act digital; deliver digital.

It’s no easy task to predict when the next tech groundswell will rattle the foundations of your business, and even harder to be prepared and ready to pivot when the shockwaves hit. That’s why having a technology partner like R Systems with over two decades of experience in the Banking Industry, is the smart choice when it comes to navigating your digital re-invention journey.

R SYSTEMS - BANKING ON THE EVER-SHIFTING HORIZON

When it comes to business and technology change is the only constant. The better prepared you are for what lies ahead, the more skillfully you can profit from the coming wave. Leading the charge on digital re-invention in your organization takes more than just predicting what’s on the horizon, it means having the agility to pivot when that change comes.

R Systems helps companies understand which technologies are on the horizon, allowing you to exploit the right technologies at the right time. We translate business requirements, identify the impact, and implement the right technologies at the right time, enabling you to add new digital capabilities to help drive willful and deliberate disruption to your business.

This requires continually monitoring and optimizing Modernizing Business Operations, Customer Experiences and Enabling Intelligent Decisioning.

Modernizing Business Operations

R Systems helps your bank automate laborious, critical tasks at scale and speed, with accuracy. This allows you to redeploy workforces to focus on more meaningful tasks and responsibilities, leading to massive productivity gains, reduced labor costs and more.

The Next Wave: Shifting from Automated to Autonomous.

Optimizing Banking Customer Experiences

Data and data analytics are the beating heart of providing a rewarding customer experience by accurately predicting what banking customer will do next. R Systems’ CX solutions provide true, realtime customer insights that drive business growth and ROI.

The Next Wave: Moving from the Personal to the Contextual.

Enabling Intelligent Decisions

Banking leaders need complete visibility to make definitive business decisions. R Systems leverages the power of analytics, cutting-edge technologies, and best practices to gain actionable insights from the large volume of data across the enterprise.

The Next Wave: Turning Insights into Action

THE URGENCY OF CHANGE

The majority of financial institutions are already putting in place, or setting the wheels in motion, for the challenges of a digital- first future.

Percentage of US Financial Intuitions Already Implementing these Digital Innovations.

72% of cloud-based collaboration platform

In 2020, North American banks were expected to spend up to 40% of their IT budget on new technology, while European banks invested almost 30% of their budget on new technology.

58% data-driven personalization 56% conversational AI/chatbots

In 2019, 50% of European banks had adopted AI and big data for direct client interactions, and another third of them had been preparing to do so.

Businesses that had been using AI at scale were performing an average of 11.5% better than those who were not.

52% ability to capture user information online

With R Systems as your technology partner, we’ll forge a plan for your organization’s digital future. Our turnkey solutions include digital accelerators to automate processes, deliver world-class customer experiences, provide deep insights into your data, and ensure you stay compliant in the face of increased scrutiny and compliance

A TECHNOLOGY PARTNER THAT SPEAKS BANKING

R Systems is a digital product engineering partner that can quickly assemble an exceedingly skilled team to develop highquality software — from the front-end UX to the back-end processes. We can help you design and build the next-gen products, platforms, and digital experiences that will attract, captivate, and retain customers while generating more revenue.

With over 20+ years of Industry expertise, our banking capabilities include:

AI/ML & Data Management services for greater financial insights

Financial Systems expertise such as Temenos T24 Transact, FIS, TSYS, MasterCard , Fiserv, First Data

Cloud Transformation & Integration services to support expansion

RPA Services to increase efficiency of financial services process

Financial Platform Engineering 25+ years of experience

Omni Channel Enablement framework for customer engagement & satisfaction

HOW WE WORK

Taking the first steps

Developing a roadmap...

Digital Advisory Services

y Evaluate digital strength

y Data Advisory

Product/Platform Engineering

y HR Automation

y F&A Automations

y Enhancement Services

y Modernization Services

Accelerate impact

Delivering cost efficiencies...

Shifting from a Legacy bank to

Neo Bank

y Unattended onboarding and KYC

y Business automation for core processes (retail & commercial banking)

y Loan operation

y Mortgage operation

Process Mining

y Mapping, repairing, and managing internal processes

IPA for Banking

y Real time fraud detection, credit card processing, and front office interactions.

Cloud Transformation

Customer experiences

Streamline the total experience...

Deeper Customer Understanding

y (AI + Data Analytics) and proactively identify customers’ needs

y Drive revenue growth through analytics

Redesign omnichannel customer experience

y Open banking strategy to provide customers with easier access to all of their banking information

y Reduce hold times and pressure on contact center

y Contextual customer engagement

Competitive differentiators

Data insights = better actions...

Intelligent Decisioning

y Predictive Modelling for customer churn, credit and lending risk

Ease Compliance & Risk Management

y Anomalies detection from repetitive task performed by robots

y Anticipate mis-compliance by AI & Predictive ML

Digital Banking Platforms

y Enable Open Banking, Digital or Platform Banking

AUTOMATING OF NON-CORE FUNCTIONS

Both neo banks and traditional banks face the reality of needing to stay ahead of the competition. Without a strategic digital re-invention plan to bring new offerings to market, banks will struggle to gain traction and reap the benefits of automation.

As a result, RPA has quickly become an essential tool for many banks. According to a recent report published by Fortune Business Insights, the global robotic process automation market size is projected to reach USD 6.8 billion by the end of 2026. For traditional banks, this is a manageable first step in improving operational efficiencies and deliver measurable impact for proof of concept.

Human Resource Automations

An optimal entry-level category for legacy banks, Automation in HR is non-customer facing and leads to more efficient data management, streamlines rules-based HR process, and improves employee satisfaction

y Resume screening, candidate shortlisting, and offer letter administration

y Onboarding new hires

y Travel and expense management

y Employee data management

y Attendance tracking

y Payroll management

Automating Finance and Accounting (F&A) processes

Many banks utilize RPA to automate manual tasks involved in report generation and can realize an immediate RoI. Automating the report generation process includes:

y Optimizing data extraction from both internal and external systems

y Standardizing the process of data aggregation

y Developing templates for reporting, review, and reconciliation of reports

y RPA can allow for a 50% capacity increase in certain process

y Banks have seen accurancy rates of 96% with RPA

y A $20 million investment can bring in $100 million revenue

Source: Deloite Analysis

ACCELERATING IMPACT THROUGH COST EFFICIENCIES

Intelligent Automation is a practical next step for most legacy banks. This automation deepens and widens as they progress from core functions to automating the entire customer journey.

For the Banking Industry this means taking a holistic view across all lines of business, starting with your most important resource, your people, and then building a strong foundation that accelerates the automation of your key processes.

Intelligent Automation for:

y Onboarding new employees

y Know Your Customer (KYC) process for monitoring customer risk and compliance

y Business automation for loan and mortgage operations.

Implementing Intelligent Banking Process

Automation for real time fraud detection, credit card processing, and front office interactions.

Processing Mining

Accelerate your shift from a legacy bank to a neo bank through Process Mining, where we map, repair, and manage your internal processes for greater efficiencies.

With finance automation, your organization can reduce operational cost by between 40% and 50%

Rapid Cloud Deployment

For banks considering a move to the cloud, we provide Cloud migration 2-speed IT to support core functions and rapid development.

DRIVING CUSTOMER EXPERIENCE

Customers expect world-class digital-first experiences. Both traditional and digital born banks are losing ground on digital engagement, resulting in customer churn and a failure to attract new customers.

Deep Customer Understanding

Implement AI and data analytics to proactively identify customers’ needs enabling targeted messaging and customized offerings.

Creating Omnichannel Customer Experience

An intelligent open banking strategy provides customers’ easier access to all of their banking information, reduces customer hold times, and relives pressure on contact center. In addition, deep analytics with meaningful insights offers contextual customer engagement that helps drive growth.

As more customers use digital banking and nontraditional new market entrants emerge in the space, improving the customer experience and keeping pace with customer demands are critical components of a digital strategy.

Already Implemented

Cloud-based collaboration platform

Customer/client analytics/real-time intelligence

Data-driven personalization

Marketing automation

Conversational AI/chatbots

Ability to capture user information online

Automated cost estimates

Planning to Implement

Ability to capture user information online

Data-driven personalization

Automated cost estimates

Conversational AI/chatbots

Customer/client analytics/real-time intelligence

Marketing automation

Cloud-based collaboration

AND BEYOND

Standing out from competitors, whether legacy or neo banks, takes extending your digital offerings, and becoming more resilient and responsive to market shifts.

R Systems helps you with:

Intelligent Decisioning

Predictive Modelling for customer churn, credit and lending risk.

More Effective Compliance & Risk Management

y Anomalies detection from repetitive task performed by robots.

y Anticipate mis-compliance by AI & Predictive Modelling

Robust Digital Banking Platforms

y Enable Open Banking, Digital or Platform Banking

Data extraction from loan applications, forms, legal letters, etc.

Automated metadata extraction enables straight-through processing of documents

Validating and cross-checking data using various validations.

Reduces TAT for information extraction, review & validation

The number of complaints about banking services in the UK alone exceeded 2 million in 2019. Only 1 out of 26 unhappy customers complain and the rest churn.

WHO DO WE WORK WITH

R Systems is a trusted partner to some of the world’s largest and most respected banking companies.

WHY R SYSTEMS?

5 Reasons to Work with Us

PURPOSEFUL INNOVATION

Your commercial objectives are our North Star. We constantly innovate using fresh ways of thinking to develop accelerators for your business, leveraging the power of automation and AI to generate actionable insight, simplify workflows and mission-critical processes. We support sustainable innovation, backed by big data, analytics, and cloud.

A TRUSTED PARTNER

Our consultative business approach enables ongoing digital re-invention that meets your current needs and future ambitions. We observe, listen, and think. Deeply. Understanding the challenges and harnessing our global technological and analytical solutions, we empower our clients to overcome digital barriers, put their customers first, and achieve operational efficiency.

FUELING BUSINESS PERFORMANCE

GLOBAL

R Systems has locations in every major banking market in the world, with 26 offices, 16 global delivery centers, and 3,000 employees across North America, the UK, Europe, and Asia Pacific.

Our specialized service offerings help our clients to achieve speed-to-market, driving business growth. We use the cloud’s full potential to gain maximum value and maintain a competitive edge. Our AI-powered, datadriven intelligent insights help our clients to optimize customer experience and develop lasting relationships.

PROACTIVE AND AGILE

We recognize that there’s never just one way, and work collaboratively to find the optimal solutions. Helping organizations to understand the value of UX in product innovation, our digital accelerators enable customers to adapt to constant changes in technology, security issues, and user behavior.

OUR SUCCESSES

Modernizing Business Operations

About Client

Client is a leading global financial institution providing a full suite of products and services.

Business Need Solution

y Product engineering of core banking solutions

y System upgrade from monolithic architecture to Microservices

y Digitally transformed client’s financial software systems and core banking service

y Created Swagger specs based on requirement

y Implemented code reviews and demo of module with client

y Facilitated retail users on board through paperless manner

The Benefits

y Reduced operational costs and improved efficiency

y Eliminated duplicate efforts in reaching out to same customer

y Faster prospect to client conversion times

y Real-time visibility into eligibility and availability of services

y Enabled users to perform their operations securely

OUR SUCCESSES

Optimizing Customer Experiences

About Client

UK based client is a challenger bank wanted to enter the UK market with a true digital solution to cater to customer requirements.

Business Need Solution

y Introduce business banking by putting customers first

y Host of Product Offerings-Savings and loans, Transactions banking, Overdrafts, current accounts with deposits and foreign exchange

y Develop new way of engaging with customers. Allow SMEs to manage working capital better

y Compliance with UK regulatory environment

y Digital Model Bank Solution- Fully integrated, highly Parameterization, workflow based digital solution for Customer On boarding, Servicing, Payments, Customer service and with value added features

y App based product configurator and preconfigured pre-configured product suite for quick Go to Market

y Solution looks at loan requests and book new products online

y Interface with CAPS system, Santander UK DATA Lake, AISP & PISP in UK, Siebel KYC, ICIS

y Fully compliant with UK regulatory environment, GDPR, PSD2,CASS,IBAN,FSCS CMA, FATCA, MiFID2/MiFR, BCBS 239, IFRS9

The Benefits

y Personalized offerings with enhanced customer satisfaction

y Flexible, with parameterization and easy to use for business users

y Bundling & Pricing, Flexibility through Product Configurator and Pricing Engine

y Single unified view of Customer to understand profile and relationship with bank

y Data Analytics services & automation of reporting

Technology Stack

OUR SUCCESSES

Intelligent Process Automation

About Client

The Client is multinational banking and financial service provider focused on consumer banking, asset management, securities brokerage, equity and debt fund-raising.

Business Need

y To automate the process which refunds excess balance from their customer’s credit card or credit over draft account

Solution

y Designed and developed an interactive bot that integrated with the client’s core system

y Enabled the bot to use AI and natural language processing(NLP) to help client with complex tasks

The Benefits

y Solution reduced the resolution time of the cases from 48 hours to 2 hours

y Automated process improved accuracy and efficiency manifold

y Enabled the bot to resolve up to thousand queries in a single day

OUR SUCCESSES

Enabling Intelligent Decisioning Solution

About Client

Client provides technology solutions in the banking and payment industry.

Business Need

y Client wanted R Systems to develop new features for their transaction monitoring & analytics platform

y Developed analytical dashboards for customers to analyze location, transaction, ATM failures & profile, etc.

y Enabled the platform to push alerts for any fraudulent activity

The Benefits

y Decision making and forecasting through dashboards

y Support and maintenance of existing apps

y Analyze ATM channel usage, executive view, and placement

WHAT WE BELIEVE

R System believes digital re-invention is both a journey and a destination. It is an endless pursuit demanding relentless curiosity and the confidence to manage perpetual change.

We believe in innovation with purpose, which means being a technology partner laser-focused on your digital goals. We take action to ensure you stay resilient enough to handle any disruption and strong enough to propel further and faster.

We believe that observing, listening, asking the right questions, and thinking deeply about those answers will make our customers better prepared for whatever the future brings.

We don’t believe in the status quo, standing still, or taking the road most traveled.

We are technology expeditioners, driven to explore new digital paths, leaving no stone unturned in our quest to deliver business solutions that drive meaningful impact.

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