2. Process automation is key
Banks will come under intense regulatory scrutiny to ensure the fair and consistent treatment of customers in the months ahead. Process automation and predictive analytics can help banks to remove human bias or arbitrary judgments from their decision-making processes. This is one way to help banks avoid regulatory fines. However, integrated testing programs that review the end-to-end collections process, and subsequent customer outcomes, are also vital.
Generally, investment in the automation and streamlining of back-end processes is a must. If banks fail to do this, they will face accounting reconciliation and amortization challenges, which will ultimately impact their balance sheets. Generally, banks have a short window of 30 to 60 days to process loan modifications – should they miss this, they will face a significant accounting challenge at scale.
Self-service capabilities, for example, can help customers learn about their options before ever talking to their bank, and are likely to be relatively straightforward (e.g., payment rescheduling). However, this does not remove the need for specialist expertise in more complex situations, such as cross-product holdings for retail and larger SMEs.