Business Process Services in Banking - A Wave of Transformation
The banking industry is grappling with significant challenges, from regulatory requirements to ever-expanding customer needs. While the focus has largely shifted to optimizing customer experience (CX), banks across the world are investing increasingly in technology that can digitize back-end processes while ensuring excellent customer experiences. Similar to the retail industry's focus on offering tailor-made solutions to enhance customer satisfaction and gain a competitive edge, banks and financial organizations require investing in state-of-the-art technology to transform user experiences and achieve operational excellence.
Business Process Services (BPS) allow banks to leverage ready-made infrastructure and business models to meet the current sky-high demands without the need to build processes from scratch. At the same time, banking and financial services help reduce costs and deliver increased business value. Let’s understand how.
Personalized Wealth Management
Leveraging ready-made AI frameworks to deliver customized wealth management solutions is one of the key use cases when outsourcing banking services. AI and ML solutions that allow for mass personalization can cater to clients looking for personalized solutions around individual factors. For instance, banks can equip wealth managers with AI algorithms and ready-to-use frameworks that enable micro-segmenting users, with both structured and unstructured data taken into account. As a result, they can provide personalized and the most fitting solutions for more precise personas based on attributes like risk tolerances, communication preferences, financial behaviors, spending patterns, life stage needs, product affinities, and many others.
Goals-Based Financial Planning
While segmentation may be critical in driving positive customer engagement, understanding each customer’s financial goal is instrumental in achieving personalization from the investment viewpoint. AI solutions in the BPS industry can be pivotal in empowering wealth managers responsible for customer success, as they efficiently collect and analyze client goals’ data to provide the most accurate investment recommendations. For example, banks can use recommendation engines to allocate products based on client goals.
Similarly, the natural language processing technology can help extract actionable insights and trackable goals from unstructured customer data. To elevate customer experiences, goal tracking services can be leveraged to alert customers about any reported deviations. It is truly remarkable how BPS allows banks and financial institutions to tap into the power of AI and other exceptional technologies for real-time optimization.
Back Office Transformation with Generative AI
GenAI is a revolutionary technology that has surpassed CX standards in multiple industries across the globe. And while the spotlight has been primarily on GenAI solutions, like chatbots and voice assistants, its role in untangling and optimizing back-office operations is tremendous. Considering the example of risk assessment and underwriting, the GenAI technology can be used to automate data collection, cleansing, and preparation. Complex risk models developed using advanced AI algorithms can completely eliminate manual and arduous data-related tasks, and in fact, better assess credit risks at scale.
When it comes to hyper-automation, GenAI can elevate Robotic Process Automation (RPA) capabilities, allowing banks to process high volumes of customer requests more efficiently. Similarly, GenAI will enable banks to use synthetic data to optimize fraud detection and prevention models, thereby strengthening the banking ecosystem against fraud. This revolutionary technology combined with digital processes can change the way banks operate, which may automatically mean better customer experiences and overall business success.
Tech Mahindra’s Business Process Services for the Banking Sector
Tech Mahindra’s Business Process Services has made significant strides by bringing innovation to the banking industry. It focuses on revamping comprehensive business operations, including client onboarding, payments, customer service, fraud detection, financing, claim handling, and other banking-related services. With emerging trends and technologies like Gen AI, conversational AI, hyperautomation, process standardization and optimization, predictive analytics, and end-to-end digitization, Tech Mahindra offers a suite of complete solutions as part of our business transformation framework that caters to all aspects of people, process, and technology.
For example, our lending services include CX management, loan and mortgage management, KYC enablement using blockchain technology, digital lending, lending analytics, automation services, and more. Our BPS offerings also include:
Frictionless digital payment processes
Card issuance
Integration of payment gateways
Implementation of loyalty programs
Further, with complete wealth management solutions, we support end-to-end customer journey for our clients in an omni-channel environment backed by GenAI, smart analytics, risk management technology, and other big-picture transformation technology.
You can read about our BPS offerings in detail on our website and reach out to our team for an in-depth walkthrough of our banking services.
