Key trends in bank innovation: enhancing efficiency and managing the credit lifecycle

The banking sector is navigating a period of exceptional instability. Banks are braced to deal with everything from volatile exchange rates to unexpected tariffs – not to mention the growing expectations of a customer base increasingly accustomed to hyper-convenient digital services.

To withstand these challenges, bolster resilience, and stay competitive banks must invest in innovation. Across the globe, financial institutions are already using emerging technologies to improve customer experience, manage risk, and diversify their core offerings. So, what are the biggest technology trends we can expect to see unfolding over the next year, and what kind of impact will they actually have?

Time to explore three key trends in banking innovation, and unpack how Process Intelligence can take these trends to the next level.

Innovation trend #1: Enhancing efficiency

Fintech startups and digitally-native neobanks are taking innovation to new heights, refining their mobile banking apps to maximize efficiency and boost customer engagement. Meanwhile, the digital transformation efforts of conventional banks are often held back by rigid legacy systems, fragmented tech stacks, and growing technical debt.

This has a knock-on effect on speed and efficiency. Not just with regards to internal banking operations, but also on financial products and customer services. The lack of technological advancement hasn’t gone unnoticed: 79% of the business decision-makers flag issues with legacy banks, including excessive fees, slow transactions, and poor mobile experiences, according to this Revolut report.

But traditional banks are innovating with efficiency in mind. Many are using technologies like conversational AI to launch chatbots that can reduce customer service bottlenecks and handle high volumes of queries. Others are looking to real-time payment rails to power the immediate transfer of funds between accounts. Automation too is being used in an innovative way, not only to streamline customer communications, but to minimize resources spent on repetitive operational tasks like reporting and data entry.

Yet all too often, these improvements are made in isolation. Refinements to individual parts of the customer journey, or a single step in an internal process, can only do so much. The result? Archaic systems, siloed financial data, and a disconnect that prevents a shared understanding of how the whole organization runs.

Finding new ways to optimize with Process Intelligence

Process Intelligence uncovers how processes actually work within a bank. This visibility brings departments and systems in sync, while leveraging AI to continuously optimize processes, so organizations are adaptive and ready for whatever curveballs the market may have in store.

To find out more about how Process Intelligence enables smarter operations and powers faster customer experiences within the financial industry, download Process Intelligence for Banking: The Ultimate Guide.

Innovation trend #2: Detecting fraud and managing risk

Just as the technologies used by the banking sector have rapidly evolved, so too have the methods used by cybercriminals. 70% of executives expect financial crime risk to increase this year, according to figures from a recent Kroll report, while only 23% would describe their organization’s compliance program as “very effective” in combating it.

So, how are banks innovating to manage risk and root out bad actors? They’re already investing heavily in fraud detection. Using machine learning algorithms, a financial institution can identify anomalous behavior patterns, distinguish them from legitimate transactions, and flag any suspicious activity at the earliest possible moment.

Similarly, AI now plays a central role in the electronic verification of ID and other credentials. Banks can train AI models to detect document forgeries, and even carry out “liveness checks” during biometric authentication, making these processes more accurate, secure, and scalable within banking operations.

Process Intelligence bolsters defences against financial crime

The Celonis Process Intelligence Platform combines the data collected from process mining with a financial organization’s unique business context, then layers in Celonis’ wider process expertise and AI — resulting in a comprehensive Process Intelligence Graph. For the banking industry, this makes it far easier to update controls and improve risk monitoring. Plus, a holistic data foundation like this makes it easier to ensure compliance with constantly changing regulations.

With our Process Intelligence Platform, banks can also access a number of out-of-the-box apps, purpose built to streamline risk management and due diligence processes. For instance, the Smart KYC Control Tower app – powered by Bright Cape – streamlines KYC checks by expediting data collection and automating customer verification.

Innovation trend #3: Improving credit lifecycle management

In traditional banking, the credit lifecycle has been fragmented, slow, and dependent on manual processes which fail to meet changing customer expectations. Speed and transparency are crucial in banking services today, and the credit lifecycle has historically lacked both. So how is banking technology evolving to improve the customer experience?

For one, mobile-first application processes now dominate, with eKYC checks, biometric ID and the ability to upload supporting documentation from a smartphone. Banks are also putting AI to work to streamline the approval process — for instance, AI-powered underwriting tools equip banks to deliver eligibility outcomes in minutes.

AI is also being used to personalize the collection strategy in line with specific customer segments. For example, banks can ensure empathetic communications with those dealing with financial difficulties.

Optimizing the credit lifecycle with Process Intelligence

Process Intelligence gives banks unparalleled insights into what happens at every stage of the credit lifecycle — from origination and application right through to disbursement. With this depth of understanding, banks can see first-hand how customers are interacting with their existing credit application process, where they might be dropping off, and what opportunities there are to prevent that.

Through Celonis, financial organizations can access the Credit Lifecycle Manager app, powered by Habber Tec, which gives them the tools they need to optimize the application process. With this app, banks can increase conversions and revenue, and improve customer satisfaction — all while ensuring compliance at every step.

Want to learn more about how Process Intelligence is transforming the way banks innovate?

From fintech startups to centuries-old banks, every organization in this sector can harness the power of Process Intelligence. With this technology, financial institutions can provide faster digital experiences, make operations and transactions smarter, and rapidly respond to new risks and regulations.

Finally, banks can stop resisting meaningful change, and actually capitalize on it.

To find out more, download Process Intelligence for Banking: The Ultimate Guide.