In this first part of this article, we highlighted practical steps to implement intelligent automation using reimagined end-to-end core processes. We also answered key questions that must be considered before embarking on this initiative. In part two of this blog, we illustrate this approach through use-cases based on our work with our clients.
The operational excellence context
Reimagining core processes that rely on internal structured/ unstructured data and apply intelligent automation levers address a key imperative of the current business environment. Many of our clients refer to it as achieving operational excellence
By leveraging data and insights generated by applying tools such as AI, ML, and NLP a firm can continuously improve its operations. Exhibit 3 outlines the benefits that capital market firms can achieve through such initiatives.
Because of the limited understanding of these automation tools, often the first step is to decide which tools are applicable when reimagining a process. This is greatly simplified by applying a ‘Lego block’ approach. This is a construct to conceptually break down complex processes into logical sub-processes where an AI technique can be utilized to automate the subprocess. This approach divides large processes into amenable process blocks. We have created a catalog of Lego blocks for processes for capital markets categorized by type of firm, LOB, and functional area.
Use Case#1: KYC Workflow
Reimagining a complex workflow at a large wealth management firm
Client Business Process: Know your customer (KYC) during client account opening/ credit application
Pain Points: Manual entry and verification of various client documents resulted in:
- Low accuracy of processing
- High turnaround time
- High operating cost
- Sub-optimal customer and employee experience
Objective: Automate the KYC verification process resulting in operational efficiency and reduced risk.
- Design-thinking led workshops with SMEs to understand and document the KYC document ingestion flow.
- Detailed flows creation and data capture for each step of the process
- Identification of appropriate Lego blocks for conducting a proof of concept
Proof of Concept (POC): An intelligent automation platform that supported OCR and machine learning (ML) based document ingestion, classification and extraction of information, and rules-based validation
Implementation and Outcome: With the success of the POC, a platform was rolled out at the enterprise level resulting in significant gains such as:
- Streamlining of KYC processing
- Reduction in turnaround time (TAT),
- ~60% – 75% improvement in STP (straight-through processing)
- ~20% – 30% reduction in manual processing
- Fewer human touchpoints resulting in a superior employee and customer experience
The need of the hour: A disciplined and structured approach
The ongoing COVID-19 situation has made it important for capital market firms to run a tight ship. We expect that automation will further accelerate the streamlining of complex manual core processes in response to the economic impacts of the pandemic.
At the same time, scaling up efforts to reimagine and automate processes requires a planned and disciplined approach utilizing the right talent. Many industry players suffer from talent deficits and have lost momentum from prior efforts that did not scale up as expected.
With the careful application of the approach described in this blog, capital market firms are sure to witness considerable success with their automation initiatives as we emerge out of the current economic scenario.
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Sr. Principal, Infosys Consulting
Amitabh is passionate about automation and the benefits firms can realize with RPA, AI, ML, and related technologies. With over 20 years of strategy and business/IT transformation experience leading programs for large global organizations like Merrill Lynch/ Bank of America, JP Morgan, State Street, Prudential, Wells Fargo, he can find value, drive innovation and navigate clients through all phases of their automation journey. Amitabh’s consulting background across different businesses, including capital markets, banking, asset management, information services, and insurance gives him a strong toolkit of best practices that he can apply to many business challenges.
He is based out of Princeton, New Jersey, and can be reached at Amitabh_Nangia@infosys.com
Associate Partner, Infosys Consulting
Anand has over 16 years of experience in designing and delivering technology solutions for several Fortune 500 leaders. Prior to Infosys Consulting, he has worked with Cognizant Technology Solutions securing new business and leading the delivery of large-scale solutions to increased revenues, profits, market share, efficiencies, and compliance for Financial Services clients. He is particularly adept at understanding client goals and driving the deployment of solutions that yield a high return on the IT investment. He is based out of our New York office and can be reached at Anand_Bhushan@infosys.com
Nitesh has over 18 years of work experience in capital Markets, IT Delivery, and IT Consulting. He brings in a good understanding of investment management and is adept in solution definition and implementation, and managing teams to deliver on program outcomes. He has been working in the investment performance measurement domain and has a CIPM certification from the CFA institute in 2017. His interests include emerging FinTech/ digital trends in the asset management business. He is based out of our Los Angeles, California office and can be reached at Nitesh_Nagar01@infosys.com