This article “Should Banks Watch Out For The Viral “Hype” In Hyperautomation?” is authored in conjunction with iMoney. For further information regarding iMoney’s services, please contact them via their website or drop an email at marketing@imoney.my.

Automation has been a key foundation technology for the banking and finance industry, touting its ability to reduce human errors, cut down overall costs, drive profitability, and ensure your business remains future-proof.

But when you’ve finally managed to wrap your head around automation, now comes hyperautomation being hyped as a key strategic technology and is projected to become a $135 billion industry by 2032.

Those are big claims for an emerging technology and you might wonder if there’s any substance to all the viral hype that hyperautomation has been getting.

In layman terms, it’s basically taking automation to the next level. This is now possible with the big leaps in generative AI and machine learning in the past four years.

It is this combination of generative AI and machine learning together with the earlier robotic process automation that has coined this new hype of hyperautomation.

So, what is hyperautomation? What are the risks and challenges? And most importantly, how does it apply to the banking and financial industry?

In this article, we’re going to take a deeper dive into hyperautomation, and some of its real-world implications, and hopefully give you a better understanding of this emerging technology and why you should watch out for it.

Understanding Hyperautomation and its Challenges

In the words of Gartner, hyperautomation is a — business-driven, disciplined approach that organisations use to rapidly identify, vet and automate as many business and IT processes as possible.

Basically, it’s a way to integrate continuous automation with intelligence into various aspects of your processes, allowing you to take on more complicated tasks without the need for human intervention.

This might sound very sci-fi but if you’re familiar with automation, odds are you’ve come across the technologies that make up hyperautomation.

For example, a robot vacuum that can manoeuvre around the corners of your apartment while cleaning when you are asleep is automation at work. Same with a virtual assistant like Siri or Alexa sending a birthday text greeting to your brother if you have set it up to do so.

Now imagine if Siri can instruct your robot vacuum to clean when the floor gets dirty, remind you to stock up on eggs when your supply is running low or alert you if your gas stove was not turned off.

For the automation available in the individual devices to be integrated and handle many different complex tasks without needing human intervention requires a combination of different technologies which are now available.

As for the technology that’s utilised, let’s take a quick look at each of them:

• Robotic Process Automation (RPA): Robotic Process Software is software that is often used to automate and deal with high volume, low complexity tasks and scenarios.
• Artificial Intelligence (AI): Artificial Intelligence is typically paired with RPA to create machines that can take on more complicated tasks by emulating human logical thinking.
• Machine Learning (ML): Machine Learning is the technology that teaches machines to learn and perform complex tasks without additional human programming.
• Natural Language Processing (NLP): Modern Natural Language Processing enables machines and computers to understand human language by including semantics and context.
• Intelligent Document Processing (IDP): Intelligent Document Processing is the combination of AI and ML technology to translate pictures of typed, handwritten, or printed text into machine-encoded text.

While other advanced technologies can be put under hyperautomation, such as Big Data and Chatbots, the main pillars that most organisations will need to keep in mind are the ones listed above.

Is Hyperautomation just Automation with “Fancier” AI?

In some ways, hyperautomation can be just boiled down to automation with better AI. However, there are still key distinctions between automation and hyperautomation in terms of its scope and capabilities.

To use a simple analogy, automation is akin to a solo musician performing a song, while hyperautomation is a full band or orchestra performing. Both let you hear the music but one offers a fuller and wider experience.

Essentially, you’re taking the simple, single-task, and focused software of automation and further streamlining it through the complex interplay between automation technologies to automate complex processes from end to end.

The Challenges of Hyperautomation that Many Still Face

While hyperautomation provides plenty of opportunity for organisations to grow and become lean profit-driven machines, there is still potential for challenges and roadblocks.

Some of those challenges include:

• Resistance to change: Adapting to the culture of interacting with multiple technologies on hyperautomation platforms can be difficult for employees, which can lead to a slower adoption process.
• Complex integration issues: Integration and implementation of advanced technologies within hyperautomation can be a complex and time-consuming process as it requires a deep understanding of how they work with existing systems.
• High costs and expenses: While hyperautomation can reduce your costs in the long run, the initial investment might still be costly due to additional expenses such as maintenance and training for employees.

How Hyperautomation is Utilised in the Real World

We’ve laid out the parts that make up hyperautomation and how it differentiates itself from automation. And while there are challenges to implementing it, the potential far outweighs it.

 But you’re probably still wondering. “How has hyperautomation been used in the real world and how did it perform?”

Industries that require the processing of complex multiple data points and decisioning on the repetitive and mega-scale would be the obvious early adopters of hyperautomation. They include healthcare, insurance, manufacturing as well as finance and banking.

In terms of banking and financing, the major usages of hyperautomation and its potential can be focused towards three main avenues: customer onboarding, loan application/origination, and debt collection.

Digital Onboarding Systems that Make the Process Easier

Based on the Use-Case Comparison: hyperautomation for Banking by Gartner, digital onboarding sits between Calculated Risks (high business value but low feasibility) and Likely Wins (great combination of high business value).

Source: Gartner

If banks can utilise hyperautomation effectively as part of their digital onboarding systems, there is a possibility for high-performing results that otherwise might be harder to achieve.

Such was the case for Axis Bank which was missing a key ingredient to push improvement towards their customer experience. Through the smart utilisation of hyperautomation, Axis Bank was able to reduce the average service turnaround time byto 90%.

This is on top of other key results that they’ve managed to achieve, such as a 90% reduction in rework during the sales process and a 70% improvement in sales turnaround time, when they’ve implemented hyperautomation into their digital onboarding process.

Reducing the Costs and Driving Improvements in Loan Processing

The amount of work needed in the loan origination/application process is a time-consuming and labour-intensive process due to the manual handling of loan documents such as promissory notes.

Through hyperautomation, a time-consuming process that would take days can be completed in a matter of minutes.

Kohler SDMO faced a similar challenge with its labour-intensive tasks which were prone to errors and required multiple workarounds. By implementing OCR engine and bot to fully automate their invoice processing systems, they were able to achieve 36x faster invoice verification time and £1.2 million savings within the first year.

Optimising Debt Collection by Integrating Hyperautomation

When it comes to debt collection, the major focus should be to implement automation on manual tasks such as (changes in financial indicators, delays in payments, etc.) and provide intelligence-powered portals that make the process as seamless as possible for debtors.

However, the amount of paperwork and manual labour involved makes debt collection susceptible to errors and longer processing times that will impact the customer experience.

A telecom operator company in the US realised that their current manual process cost them market share trends and the ability to reach out to new customers.

By creating a unified, event-driven, data-driven and redesigned portal while automating several back-office processes, they were able to reduce customer acquisition costs by 45% and increase 36% in revenue year-over-year.

It’s More than Just Hype, it’s an Essential Part of Your Organisation

Automation is a must at this point for banks and financial institutions and hyperautomation is the next logical step towards digital transformation. From improving customer experience to driving up performance, it’s more than evident that hyperautomation is more than just viral or “hype” technology.

If your organisation is slow to integrate it and make it part of your key strategic technology, you’re missing out on the tangible benefits it brings.

JurisTech, Your Preferred Partner

At JurisTech, we lead the charge in digital transformation, providing exceptional support tailored to your banking needs. Recognised as a top partner in the Asia Pacific, our solutions, including our digital onboarding platform, loan origination system, and debt collection system, have earned Visa accreditation. This prestigious endorsement reaffirms our commitment to delivering top-tier, competitive solutions in the digital lending and recovery landscape.

With Visa certification, JurisTech ensures a secure, rapid connection to technology providers globally. Our award-winning expertise in digital customer onboarding and seamless system integration enhances your banking experience, driving performance and efficiency.

Our expert team, blending technical prowess with business consultancy, is dedicated to guiding you through every step of your digital transformation. We offer comprehensive training and support before, during, and after implementation, ensuring your system meets all business requirements while making the transition smooth and enjoyable.

Experience the future of banking with JurisTech. Contact us today for a free demo and discover how our innovative solutions can transform your financial services.

About JurisTech

JurisTech is a global leading company, specialising in enterprise-class lending and recovery software solutions for banks, financial institutions, telecommunications, and automobile companies worldwide.

We power economies by reimagining financial services with cutting-edge software solutions, leveraging composable architecture and generative AI. Our offerings include artificial intelligence (AI), auto-decisioning, digital customer onboarding, loan origination, credit scoring, loan documentation, litigation, and debt collection.

Our solutions have enabled businesses across a broad array of industries to undergo digital transformation, providing enhanced customer experiences and, most importantly, achieving their business goals.