In an era characterized by rapid technological advancements, hyperautomation stands out as a game-changing approach to automation. It harnesses cutting-edge technologies like artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA) to propel business processes to an unparalleled level of efficiency.
Among the myriad of sectors that can benefit from this transformative power, the realm of payment processing in banking holds immense potential for optimization and revolution. By integrating hyperautomation into their workflows, banks can unravel an array of unmatched advantages that reshape how transactions are handled and elevate the financial experience for both institutions and their customers.
A dive into hyperautomation’s unparalleled advantages
Hyperautomation is an approach to automation that involves the use of advanced technologies, including AI, ML, RPA, and other tools, to streamline and enhance business processes to an unprecedented level. In the context of payment processing in banks, hyperautomation can revolutionize and optimize various aspects of the payment lifecycle.
Here is how hyperautomation can be applied to payment processing in banks:
Hyperautomation empowers complete automation of payment processing workflows, encompassing everything from initial data capture and validation to routing, reconciliation, and reporting. This comprehensive automation optimizes every facet of the payment process.
Data Extraction and Validation
Advanced AI and ML algorithms can be used to extract data from different types of payment documents, such as invoices or remittance advice. These algorithms can also validate the accuracy and completeness of the extracted data.
Fraud Detection and Prevention
Through the utilization of AI-driven algorithms, hyperautomation can bolster fraud detection by scrutinizing payment patterns, transaction histories, and anomalies. This proactive approach assists banks in identifying potentially fraudulent activities and implementing preventive measures.
Within the realm of hyperautomation, banks can effectively uphold compliance with various regulations to ensure the bank operates within regulation, safeguarding its integrity and industry reputation. The function oversees multiple duties: protecting bank data, avoiding government fines, avoiding tax evasion, establishing customer identity, monitoring and reporting anti-money laundering activities, assessing risks, and ensuring zero violation of banking ethics.
Anti-money laundering (AML)
Automated processes play a pivotal role in monitoring transactions for any signs of suspicious activities and generating reports as needed.
Fraud occurs when someone knowingly lies to obtain a benefit or advantage to which they are not otherwise entitled or someone knowingly denies a benefit to someone to which they are entitled. Cases investigated by the fraud division most often consist of criminal acts involving automobile, property, personal injury, workers’ compensation, health, residential, and commercial property claims.
Straight-Through Processing (STP)
Through hyperautomation, STP becomes achievable by fully automating the entire payment lifecycle, eliminating the need for manual intervention. This leads to faster transaction processing, reduced errors, and improved operational efficiency.
When exceptions occur, such as discrepancies in payment details or failed transactions, hyperautomation can trigger workflows to resolve these issues. AI-powered decision-making can help route exceptions to the appropriate teams or processes for resolution.
Automated communication channels can be established to keep customers informed about the status of their payments. For example, customers can receive real-time notifications about successful payments or any delays.
Analytics and Insights
Advanced analytics tools can process payment data to generate insights about transaction trends, customer behaviors, and performance metrics. These insights can help banks make informed decisions and optimize their payment processing strategies.
Scalability and Flexibility
Hyperautomation allows banks to scale their payment processing operations efficiently, accommodating fluctuations in transaction volumes while maintaining consistent accuracy and speed.
How Waylay facilitates banks in attaining the benefits of hyperautomation
Overall, hyperautomation in payment processing can lead to improved operational efficiency, reduced costs, enhanced customer experiences, and better risk management for banks. It empowers banks to handle complex payment workflows with speed, accuracy, and adaptability in an increasingly digital and competitive financial landscape.
Waylay is a hybrid hyperautomation platform with strong DMS, iPaaS, and BPA capabilities packaged in a single homogenous platform, enabled by low-code and cloud native technologies. Looking through the lens of the platform, Waylay’s hyperautomation stack encompasses a range of features designed specifically for the finance sector:
- Cloud Agnostic Hyperautomation platform: Waylay’s cloud-agnostic architecture aims to design applications that can run seamlessly across any cloud provider. Unlike cloud-native applications, Waylay’s cloud-agnostic services are not dependent on a single cloud platform’s toolkit. Instead, they can integrate with a mix of open-source and vendor-provided ML/AI tools and analytics.
- Private Data Center Operations: Waylay can also operate within a bank’s private data centers, ensuring heightened data security and compliance.
- Harmonized AI-Driven Decision Rules: By harmonizing subject matter decision rules with AI capabilities, Waylay offers customers the optimal blend of expertise and cutting-edge technology.
- Expertly Crafted Rule Management: Waylay’s platform manages a multitude of rules, many of which are pre-packaged by finance experts from Capgemini.
- Cloud-powered Efficiency: Built on cloud infrastructure, Waylay comes equipped with AI algorithms and rulesets right out of the box, bolstering organizations' ability to combat money laundering effectively.
- Robust Processing Capabilities: With the capacity to process extensive volumes of data coupled with state-of-the-art security and access control measures, Waylay ensures scalability and resilience, facilitating the management of millions of daily transactions.
- Adaptive Rule Deployment: Waylay empowers banks to deploy rules either in bulk or real-time modes, accommodating varying processing requirements. Daily bulk rule executions are complemented by instantaneous validation for card payments, crucial for prompt decision-making.
- Regulatory Compliance Oversight: The platform offers the auditing, observability, and explainability of decisions, all aligned with regulatory demands, thereby ensuring transparency and adherence.
Incorporating Waylay’s hyperautomation stack equips financial institutions with a comprehensive toolkit that blends expertise, technology, security, and agility. The platform’s suite of features collaboratively addresses the multifaceted challenges of the finance sector, enabling organizations to navigate complex decision-making processes with precision and confidence.
Utilizing advanced technologies such as AI, ML, and RPA, hyperautomation enhances business processes dramatically, especially in the domain of payment processing within the banking sector. By embracing hyperautomation, banks can streamline and revolutionize various dimensions of the payment lifecycle.
Hyperautomation also offers a spectrum of applications including end-to-end payment workflow automation, data extraction and validation through advanced AI and ML algorithms, robust fraud detection and prevention utilizing AI-driven analysis of payment patterns, regulatory compliance assurance for AML and KYC mandates, efficient STP via complete lifecycle automation, responsive exception handling for discrepancies, automated customer communication, insightful analytics, and adaptable scalability for fluctuating transaction volumes while ensuring precision and speed.
Additionally, Waylay offers a hybrid hyperautomation platform that can empower banks in achieving these benefits. By amalgamating subject matter expertise, AI, and rule-based decision-making, Waylay offers a comprehensive solution that enhances money laundering prevention, supports bulk or real-time rule deployment, ensures regulatory adherence, and more. In a rapidly evolving financial landscape, the implementation of hyperautomation in payment processing can lead to operational efficiency, cost reduction, improved customer experiences, and robust risk management for banks, ultimately propelling the sector toward greater success.
About the Author
Veselin Pizurica is the COO and co-founder of Waylay. Throughout his career, Veselin worked in the fields of cloud computing, semantic web, artificial intelligence, signal and image processing, spherical lattice coding, pattern recognition, home networking, MPLS routing, xDSL troubleshooting, and optical networks. Veselin holds 12 patents in the domain of artificial intelligence, xDS, home networks, and cloud computing. He has been the driving force behind the creation and finetuning of the digital twin concept in the IoT developer community.