How is intelligent automation revolutionizing the financial sector?
Intelligent automation is revolutionizing the financial industry like never before
The growth of smart factories will forever affect how businesses operate as they attempt to recover from the global pandemic. In this article, you will learn about the importance of intelligent automation in the financial sector and how it is revolutionizing this sector. Without further ado, let’s get started!
Why is intelligent automation important in the financial sector?
Despite the fact that the need for funding to implement more efficient and flexible ways of working predates the global pandemic, the events of 2020 are proving to be a crucial driver of the technological revolution. For finance, this means accepting new technologies that can be adapted to key processes, such as deep learning.
CFOs have long sought to reduce the time they spend on procedures such as closing, consolidations, accounting and payroll, and the COVID-19 pandemic, as well as changes in how and where they operate organizations, have made it a must.
Digital technologies and greater automation can be a brilliant mix for CFOs to put the finance function in the right hands. Success, on the other hand, will depend on identifying and prioritizing the tasks that will bring the most value. When it comes to automation, a finance team’s initial priority should be to automate recurring and transactional operations that require manual intervention or human effort. This will allow considerable time for finance to become a more effective advisor to the business.
Intelligent automation in the financial sector
Need of speed
Intelligent automation solutions work with today’s systems and data the same way humans do, but without disruption. These platforms, unlike humans, are available 24/7 and can thus perform work that would normally take weeks or be completely beyond the reach of human personnel. For example, in the healthcare industry, finance and accounting departments use intelligent automation to aggregate patient payment information from a number of sources. The system then performs a thorough risk assessment of patients and payers to reduce outstanding debts and total days remaining. Risk analysis is popular in finance and accounting, but it requires access to actionable data. This access is offered via AI, enabling data-driven decision-making in volume and on demand.
Importance of precision
Large companies now frequently use sophisticated risk modeling to help them make choices, but these systems are only as effective as the data on which they are based. With people making about 10 inaccuracies for every 100 steps, the data on which these models are based frequently contains inaccuracies. Even a single data entry error can significantly affect results. As the volume of data evaluated by M&A departments increases, the likelihood of a data entry error also increases. Data entry errors can affect everything from decision-making algorithms to basic accounting errors, which can have multi-billion dollar consequences.
Impact on employee morale
Intelligent automation has a huge impact on speed and accuracy, but its most critical impact is on improving the work experience.
Every day, M&A professionals face a variety of low-skilled, high-stress jobs. These staff, for example, draw invoices to react to audits, which is a key step for companies. However, no tax expert expects such work. Instead, they would prefer to work as more strategic advisors who aggressively (and more creatively) provide business-focused insights to their organization. This is unquestionably a better use of the time of M&A specialists.
Intelligent automation allows staff to focus their time and mental resources on more challenging, higher value activities by processing extracted data and answering basic questions from internal stakeholders. When regular, boring tasks are delegated to “digital workers” or computer-enabled team members skilled in handling a business procedure the same as anyone else, they are completed faster and with less effort. errors.
Intelligent automation, for example, enables higher revenue development that exceeds any corresponding increase in expenses. Digitally transforming your finance and accounting activities allows you to redirect resources from support functions to areas that can help your business grow.
Deliver faster and deeper insights
While the intelligent automation of the activities described above will benefit finance, the ability to meet the increased need for information, monitoring and analysis, as well as the growing volume and complexity of time-demanded data near real life by key stakeholders, will have the most beneficial impact. In fact, according to a global study of CFOs, the primary motivation for embedding automation within the finance organization was to provide better decision support, enabling their teams to become more strategic members of the business. business. Manual data collection, aggregation, verification and structuring will become obsolete as the finance department embraces digital technology to promote increased automation. These non-value-added tasks are now extremely time-consuming, leaving less assessment time for finance staff. Finance teams will be able to focus on value-added tasks such as scenario analysis, risk assessments, productivity, and predictive modeling as routine manual procedures become more computerized.
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