Why IT automation must be at the heart of every bank’s digital transformation

Bank of America’s online banking platform suffered a failure of several hours in early October, blocking customers’ access to their accounts and triggering 12,000 complaints. This is the kind of incident that banking and payment companies fear, affecting a vital service for customers and risking enormous damage to their reputation.

Blackouts can hit any business in any industry, but in banking and payments they can have catastrophic fallout. As digital banking swallows traditional banking, the stakes get higher and higher.

For more information on Hexaware’s Tensai suite for banks and financial services organizations, download white paper.

The banking sector has become more precarious, with 80% of financial institutions believing that companies risk losing to innovative new entrants. Among younger customers, who are more likely to use digital services, one in three would be ready to switch banks within the next 90 days, and a similar proportion say they won’t need a bank at all. bank in the years to come. CEOs of banks are more concerned with the pace of technological change than other industries. To keep abreast of technological changes and remain competitive, it is essential that banking companies adopt an IT-centric strategy.

Investing in automation is one of the most recommended / essential / responsible actions that banking and payments businesses can take to sustain their organizations. Automation can help prevent outages, identify the reasons for outages faster, and get an application back online as quickly as possible. Technologies like Hexaware’s TensaiMT for AI Ops digests data from multiple sources and automates routine tasks such as monitoring, managing, and testing an organization’s hardware, networks, data centers, and software. TensaiMT for AI Ops uses preventive pattern recognition to report anomalies and analyze events to quickly remedy disruptions.

“We are deploying what we like to call ‘neighborhood behavior monitoring’ using time-series-based algorithms to find answers to questions such as: have other systems or network devices been affected roughly. at the same time or could other applications be affected? Says Hemant Vijh, Executive Vice President and Practice Leader (Digital IT Ops) at Hexaware. “It helps us isolate incidents and tells us how serious the problem is. ”

For more information on Hexaware’s Tensai suite for banks and financial services organizations, download white paper.

TensaiMT for AI Ops uses self-healing bots to automate the solution for up to 40% of incidents. “In our opinion, the best incident is the incident that never happened,” says Vijh, adding that “as soon as the system detects an anomaly that requires action, the automation engine kicks in for it. ‘analyze and solve it before human intervention. ”. It can also estimate the impact of an incident on revenue, translating technical data into actionable business information.

Leading companies are integrating AI more deeply into customer-centric applications, back-office applications and risk management, according to PwC research. Automating core technology components creates a foundation upon which more sophisticated operations can be layered, such as onboarding new customers, credit scoring, and e-knowledge of your customer. Tensai from HexawareMT product line enabled a Swiss bank to save money through automation, with a return on investment (ROI) of over 400%. Banks that want to stay competitive need a forward-looking stack that combines core systems and automated analytics into an integrated architecture.

One of the biggest challenges of automation in banking and financial institutions is legacy IT systems that are siled, complex and expensive to maintain. Technologies like TensaiMT for AI Ops can unify disparate datasets and create synergy between different systems, reducing transaction costs and leveraging new customer datasets. It places IT managers in the control room, with a dashboard of all interacting systems and workflows, marrying the technical and business aspects of the operation.

While different companies have specific workflow requirements, Vijh says “if you need to provision or decommission a particular server / environment, or any similar workflow, multiple components must be assembled.” He continues: “We have automated the entire chain there. For one of our clients, there was a ten member team that was just doing this job, but now our bots are actively doing this job much faster and without any manual effort.

Less than 20% of automation deployments reach the desired scale because organizations are unable to identify use cases. Hexaware helps organizations take a systematic approach to uncover use cases where automation will add maximum value, enabling them to achieve scalability from the start. Automated self-monitoring and preventative maintenance reduce the risk of downtime to vital operations and keep applications running as smoothly as possible.

For more information on Hexaware’s Tensai suite for banks and financial services organizations, download white paper.

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