Process automation
Once the processes have been reviewed, automation is the logical and sensible consequence. Process automation is crucial for financial institutions and insurance companies to remain operational and competitive. Reduction of human input error, automated delivery to the right people, control of activities combined with audit. The goal is continuous, media-free, digital business processing.
Definition: What is process automation?
The term process automation describes the optimisation of manual routine processes using digital technologies. The aim of this automation is for financial institutions and insurance companies to improve their operational processes and thereby save costs, time and resources. It is also about minimising the number of errors and increasing customer satisfaction. The automation of processes can include various technologies and tools. These include, for example, workflow management systems, document management systems (DMS) or digital invoice processing, digital mail delivery or contract management.
These types of processes exist in finance and insurance
Processes (or workflows) are used in all financial institutions and insurance companies - no matter what size they are. Below is a list of the most common examples of automated digital processes in companies:
- Inbox distribution
- Incoming invoice processing
- Complaints management
- Client Management
- Approval workflows
- Quality management
- Master data processes
- Personnel and applicant management
- Vacation requests
Benefits of process automation for financial institutions & insurance companies
Increased efficiency
Automated processes are faster and more precise than processes carried out manually. This ensures more efficiency.
Cost reduction
Automating processes allows financial institutions and insurance companies to save costs on manual work that would otherwise have to be done by employees.
Consistency and accuracy
Automations are more consistent and accurate than manual processes. They lead to better compliance with standards and (legal) regulations.
Scalability
Automated processes are easily scalable. This means they meet the requirements of growing companies, because it doesn't matter how high the volume of one and the same process is. And: Additional resources are not required.
Time saving
Process automation saves employees a lot of time, which they can use for important strategic tasks.
Error prevention
Automations can be designed to minimise errors, resulting in higher quality.
Analytical possibilities
Automated workflows help companies collect and analyse data. In this way, valuable insights are gained for decision-making and process optimisation.
Transparency
Digitalised workflows enable you to quickly check what stage documents are in and within the specific process. Enhancing customer service and communciations, whilst avoiding costly recalls.
Process automation tools
Choosing the right technology requires a certain understanding of the context. Understanding the specific demands of the business is critical to the decision process. Analysis of business processes, combined with discussions with a digital automation specialist , will identify the most appropriate tools required.
1. Document management system (DMS)
d.velop's document management is a central starting point in process automation: away from paper and media disruptions - towards digital processes. With a DMS you can automate all sorts of routine tasks in the office. It also enables the archiving of all relevant documents that require retention in electronic form. In this central system, the information remains audit-proof and discoverable.
2. Digital invoice processing
The processing of invoices is one of the repetitive processes that can be easily automated: digital invoice processing, which takes care of both comparison, extraction of metadata, integration with ERP and accounting systems and the review and approval of the invoice.
3. Digital contract management
Digital contract management is another process that financial institutions and insurance companies can optimise. It affects all phases of the contract life cycle - from creation and coordination of contract details to termination or extension.
4. Digital signature
Thanks to the digital signature solution from d.velop, you can not only save paper and postage, but also a lot of time. Because the electronic signature can be used regardless of location, is legally valid and safe to use as a qualified electronic signature.
5. Digital process management
With the d.velop process studio, specialist departments independently map their processes and automate them: The specialist department describes the process and indicates which information is needed at which points - your IT ensures that the information from other systems is available.
Practical use cases for process automation
Automation of the loan approval process in the financial sector
- Application data capture: Customers submit loan applications online. The system automatically collects the necessary personal and financial information.
- Data processing and analysis: Algorithms analyse loan applications taking into account creditworthiness, income, debts and other relevant factors. The system evaluates creditworthiness based on predefined rules and statistical models.
- Risk assessment and decision making: The system assesses the risk of each request and makes automated credit decisions. If the risk is low, an automatic approval is given; if the risk is high, it is rejected.
- Automated notifications: Customers automatically receive a loan decision notification via email or app.
- Manual review (optional): In cases of marginal cases or ambiguities, loan applications can be forwarded to human reviewers.
Automation of insurance claims reporting
- Reporting of damage: Insured persons report damage on the insurance portal. The system automatically records the necessary contact information and claim information.
- Claims verification: The system automatically verifies costs against internal price lists, insurance contracts and applicable policies.
- Documentation: The damage report and decision regarding cost coverage are automatically documented and can be accessed for later reference.
- Communication with the insured: Insured parties receive automatic notifications about the settlement of the claim and any personal contribution.
- Claims settlement: The insurance company automatically pays compensation to the insured according to the documentation.
What do the tools have to have and be able to do?
There are some providers that specialise in process automation software. However, selecting the right technology requires a certain understanding of the context. On the one hand, there are the specific requirements of the financial institution or insurance company and, on the other hand, the possibilities that technologies in general can offer. An understanding of specific requirements helps with the selection, and a conversation with an experienced digitiser provides an overview of what is technically possible.
Challenge: Integration into the existing system landscape
Integrating process automation into the existing system landscape can be a challenge. Some systems may not be fully compatible or may require the use of interfaces to transfer data between systems. A provider with a high level of integration expertise and many standardised interfaces is a good path to success.
Think about artificial intelligence (AI)
Anyone looking for specific tools for process digitalisation should think about the future when choosing a provider. This means: It is advisable to ask your potential software provider what role artificial intelligence currently plays in its products - and what role it should one day play. Are there already business processes that can be automated using AI? And are there efforts to roll out AI even more broadly in the product range in the future?
Deep Learning und Large Language Models
The integration of AI into products and apps is diverse. For example, AI implies modern methods such as deep learning and large language models (LLM). These help to support the digital transformation of work processes and provide innovative solutions, for example for different document types. Regarding documents, the following scenarios are conceivable:
- Automated separation and recognition of document types
- Automatic data extraction using pattern recognition
- AI-based capture and digitisation of documents
- Intelligent extraction of information from receipts
- Smart content services to automate document and business processes
- Interact with documents via LLM & AI
- Automatic AI-powered document recognition and summaries
- Real-time chat function for questions about the document
- Speech-to-text and text-to-speech combined
- Have document summaries read out loud
- Example: Preparing for meetings while driving
4 steps to automate routine tasks
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Contact
Colin Dean Regional Vice President United Kingdom info@d-velop.com +44 (0)7808 062181 d-velop.com
Management Board Rainer Hehmann Dr. Stephan Held Nico Bäumer Martin Greiwe (Spokesperson of the Board)
Supervisory Board Chairman Dr. Helmut Bäumer