Over the last two years, companies have adapted and embraced
technology to enhance their offerings to customers within the digital space.
Research by Deloitte on 'Emerging Technology' found that 47% of financial
services executives surveyed said it would be essential to implementing AI
within the financial realm by 2023. Artificial intelligence (AI) advances such
as machine learning yield accurate data and insights that, in effect, simplify
and streamline manual processes. However, utilising emerging technologies and
human expertise forms essential building blocks toward greater business
efficiency.
The role of automation in businesses
Pressures on business owners within the financial industry
to drive automation surged during the pandemic. While employees have to manage
internal financial admin, they must also respond to growing customer and
supplier needs. We've seen that digitising processes such as invoice management
improves exchanges between businesses and suppliers. Understanding the need for
and applying automation increases employee productivity, time, and resources:
Improving business operations.
Automation tools must be integrated alongside a company's
existing model, in conjunction with human expertise, instead of replacing the
employee ecosystem with machines. McKinsey's research has found that 60% of all
occupations have roughly 30% or more capabilities that have the potential to be
automated with existing technology. It's essential that companies bridge
technical skills and human expertise to allow companies to automate the
processing and payment of invoices on a single platform.
Benefits of automation for financial admin
The financial department is at the heart of any business
across all industries. Many aspects of financial administration and management
have the potential to be automated, including invoice management, audits, risk
assessment and compliance. Further research from McKinsey's Global Institute
revealed that current technology could fully automate up to 42% of activities
in the financial services sector and partially automate a further 19%.
Automating data-heavy processes eliminates the risk of human
error, enabling greater efficiency and accuracy through algorithmic data
analysis and ultimately saves time. Emerging technologies such as Robotic
Process Automation (RPA) are typically used to digest heavy data that could
take hours if manually conducted. RPA also allows businesses to quickly sift
through financial incomings and outgoings, rather than relying on outdated
systems.
Automation also plays a role in alleviating workplace
stressors. Archaic, manual processes have made it difficult to keep up with the
growing demands placed on employees. Implementing automation increases the
speed at which financial admin is completed and frees up time for employees to
focus on areas that promote business growth.
Conclusion
The speed of digital transformation is growing
exponentially, impacting every industry and creating countless opportunities
for businesses to invest in. Digital transformation provides an opportunity for
businesses to optimise their processes and eliminate the risk associated with
manual processing - saving time and preventing reputational issues around
unpaid or incorrect invoicing. Today, automation is helping SMEs to drive
resilience across all industries.
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