3 Ways AIOps Can Benefit the Financial Industry
According to McKinsey research, nearly three-quarters (73%) of US consumers used digital banking services in 2020. And 21% of those users were new users. Although accelerated by the pandemic, this shift to digital-first banking will be permanent. In fact, projections indicate that more than 80% of Americans will rely on digital banking by 2025.
The financial industry is responding to this drastic change by offering robust digital consumer products and services. But the industry is generally slow to adopt other automated strategies that can add significant business value.
Before 2021, only 57% of banks and credit unions had started their digital transformation journey, according to Cornerstone Advisors’ What’s Going on in Banking 2021 study. And a surprisingly small number (just 14%) of those who had launched digital transformation strategies had deployed machine learning (ML) tactics.
How is the financial industry missing out on automation? And what are the main benefits of advanced automation, especially AIOps?
The benefits of an AIOps strategy
As fewer people use manual processes for financial services such as withdrawing money or performing transactions, more people are turning to digital products and services and the convenience of 24-hour access. /24 and 7/7. Indeed, technology now touches nearly every financial product and service, and poor system performance and outages are simply not tolerated, especially by consumers trying to access their assets.
For optimal availability, continuous monitoring is essential. But the old ways of manually monitoring IT infrastructures have become nearly impossible, with complex and disparate systems producing huge amounts of data. Therefore, IT operations teams responsible for maintaining and improving systems need help.
AIOps, short for Artificial Intelligence for IT Operations, is a strategy for automating time-consuming processes, analyzing big data, and leveraging machine learning (ML) to establish baselines for IT performance. system and detect behavioral anomalies. These benefits combine to increase availability and improve overall system performance. And when applications and services fail, AIOps tools detect and diagnose incidents for faster mean time to resolution (MTTR), sometimes resolving issues before they affect critical applications and services.
Let’s explore the practical ways an AIOps strategy can differentiate financial institutions:
- Ensure customer satisfaction. Modern consumers expect digitized products and services that continue to improve with the latest technological innovations. But the teams expected to deliver such innovations cannot work on forward-thinking initiatives if they are drowned in a deluge of system alerts and consumed by patches. By automating system monitoring and providing actionable patch insights, AIOps tools free up valuable time for IT teams to perform higher-level tasks that will delight customers and build brand loyalty.
- Build cyber defenses. Financial services companies hold extremely sensitive consumer information, making them prime targets for cybercrime. Therefore, the financial industry must keep pace with the evolution of cybercriminals’ tools and tactics to protect their systems and data. AIOps tools could be the answer, providing round-the-clock monitoring and continuously analyzing data across the entire IT stack to identify deviations from normal behavior. When the platform detects potential threats, it can flag that data for further investigation or trigger a series of defensive tactics to protect the system from penetration.
- Streamline internal operations. Although most companies in the financial sector focus their investments on consumer-facing technology, an AIOps strategy also benefits internal processes and enables growth. AIOps tools automate repetitive back-office processes in categories such as compliance and accounting to maximize operational efficiency, reduce costs, and eliminate human error. AIOps can also improve internal security and manage risk. For example, just as an AIOps tool surfaces data anomalies that warn of possible security breaches, it can also analyze large amounts of transactions to detect fraudulent activity.
I was able to see some of these benefits come to fruition when my company implemented an AIOps strategy for a $100 billion global financial institution. Continuous alerts plagued the company. To troubleshoot, IT operations teams were looking at their legacy monitoring tools, but there were multiple platforms, resulting in siled data and a lot of confusion. Meanwhile, time would be running out and the company’s slow MTTR would lead to lost revenue and frustrated customers.
Once our team extended the company’s AIOps capabilities and implemented an integrated monitoring platform, its MTTR dropped by 40% in just six months. And with a consolidated monitoring tool, the company’s tool footprint was reduced by 50%, saving millions of dollars in licensing fees and reducing costs associated with maintenance and maintenance. use of these tools.
In our increasingly digital world, technology is an essential requirement. But adopting advanced technologies such as a comprehensive AIOps strategy can also be a market differentiator, providing competitive advantage to improve customer satisfaction, protect against cyberattacks, and improve internal operations.