PERSPECTIVE

ENABLING SMART, NEXT-GEN

BANKING THROUGH INFOSYS AI AND
AUTOMATION SERVICES

Abstract
Organizations across the world are looking for ways to leverage
automation for business and operational benefits. For some,
automation is also the key to unlock opportunities to leverage
artificial intelligence. Considering the sheer scope for innovation
in the banking industry, the use cases for AI and automation are
virtually limitless. This paper outlines the value and scale that AI and
automation can provide in banking along with real-world successes
and use cases delivered by Infosys. It also examines Infosys AI and
Automation Service offering, its approach and implementation
roadmap, and how these can help banks realize tangible, viable
business benefits.
 Introduction
How does the combination of automation
and artificial intelligence deliver value to
the banking industry? Infosys believes the
answer is enhanced relevance, consistency,
interaction, and transparency. In fact, we
predict that the successful bank of the
future will have four key features that will
deliver true value to this industry. These are
intelligent automation, intelligent products,
enhanced trust, and enhanced interaction.

Intelligent automation refers to the ability

to amplify traditional automation solutions
with cognitive capabilities while enabling
self-learning, repeatability at scale and
real-time feedback. Intelligent products
belong to the new class of customizable
services, channels and models that can be
introduced at speed with greater levels
of quality than ever before. Enhanced
trust is the amalgamation of fortified
cybersecurity, fraud detection and financial
governance, to safeguard the organization’s
relationships with all stakeholders. Finally,
greater levels of trust promote enhanced
interaction through hyper-personalization
and real-time transparency, thereby
providing superior customer experience
and satisfaction.

External Document © 2019 Infosys Limited

Value of AI and automation in
banking
AI and automation can help companies
generate value, amplify value and reduce
costs across the organization. The three
main areas where this is applicable are:
• Higher customer engagement – AI
and automation can support product
development through product
research, tailored offers, relevant
recommendations, and marketing
campaign management. It can also
analyze customer responses to products
and product-channel distribution.
It enhances sales and marketing by
generating leads, forecasting sales
budgets, managing AML, KYC and fraud,
Customer engagement
Product development
and marketing
Product research, offer
development &
recommendations
Offer personalisation
Automated marketing
campaign management
A/B testing of marketing
treatments
Analysis of customer response
to products
Product-channel distribution
framework analysis
Product configuration and set-
up
ILLUSTRATIVE
Figure 1: Value realized from AI and automation across the banking value chain
Sales and distribution
Customer identification policy
Lead generation
Credit appraisal and sanction
Sales budget forecasting
Development of advising
strategy
Customer information and
customer inquiry analysis
Case management - AML,
KYC, fraud
Contract management
Lead assignment and
automated call routing
Document management –
Sales collaterals
KYC screening
OCR based document scrutiny
Contract Generation
Cognitive tasks
(ML | Knowledge Engineering | Analytics based
insights)
Figure 1: Value realized from AI and automation across the banking value chain
and generating contracts and sales assessing regulatory impact, defining
collateral risk appetite, and more.
• Efficient operations – AI and automation From an operational perspective, banking
can change the way companies deliver relies heavily on a front-office to back-end
services and manage IT operations. The service lifecycle integration that must
applications range across customer be optimized for greater value. AI and
complaint and incident management, automation help banks create interactive
monitoring transactions and security, front-end services that seamlessly
employing dashboards and reports, and plug into smart back-end functions. It
leveraging testing automation, to name a enhances front-facing functions such as
few customer engagement through improved
• Enhanced enterprise functions – In product development, marketing, sales,
areas of finance, risk and compliance, AI and distribution. It also streamlines IT
and automation can improve accounting, operations by delivering next-gen support
control, fraud detection, financial services. Finally, it revamps finance, MIS
reconciliation, etc. It also mitigates and risk management functions with
risk through KYC and AML monitoring, improved accuracy and efficiency.
Operations Finance, risk and compliance
Deliver services IT operations Finance and MIS Risk management
Value amplification
Customer inquiry and Risk appetite definition
Financial risk and controls
complaint management Managing and supporting IT
framework
infrastructure Credit-operational-market risk
Exposure management review and framework
Accounting and control
Funding
Incident management Regulatory Impact
Investment planning Assessment & Compliance
Requirement analysis
Forecasting volume of Audit / Compliance Stress testing, credit and
Managing IT customer
customer service requirements satisfaction management operational risk forecasting
Value generation
Financial news analysis and Contracts assessment
Fraud detection and
forecasting Performing demand-side prevention
management (DSM) for IT Collateral and covenant
Transaction monitoring services tracking
Firm-wide Stress Testing
Fund management KYC and anti-money
Asset liability management /
Deployment management laundering (AML) threshold
Liquidity risk forecasting
Reconciliation and settlement management
Funding / Disbursement Daily Application & Security KYC and AML monitoring
Monitoring Financial reconciliations
Collection and servicing Operational controls Cost reduction
Access management /
monitoring and reporting
Disbursement and provisioning
Customer communications
Revenue accounting
Business continuity Case setup
Customer inquiry and management
complaint management Administration of third party
Software management accounts (Eg. escrow,
Financial reporting
Reports and dashboards endowment, trusts)
Testing automation
Deterministic tasks
Predictive tasks (NLP | NLG | Analytics)
(Robotic process automation)
External Document © 2019 Infosys Limited
 Some of the common use cases for AI and automation in the banking and financial services industry include:

Understanding documents/financial spreadsheets – Through AI and automation, companies can download balance
sheet statements for each entity, extract key attributes from the sheets, flag errors such as negative or missing values in the
financials, perform accurate calculations for current assets and liabilities, and capture the right results

Reimagine KYC processes – Here, companies can upgrade KYC processes by creating a list of mandatory data requirements
from the customer, collecting the required information such as proof of registration, business, and activities from third-party
websites, annual reports, etc., and extracting ownership information instantly, thereby streamlining the KYC process

On-boarding clients – Automation can help overcome challenges of varying applications as well as effort-intensive and error-
prone processes when it comes to on-boarding clients. Once the workflows are retrieved and validated, the optional product
systems can be marked. Then, all counterparty data can be validated from the database and all mandatory and optional
systems can be populated, thereby completing the workflow faster and without errors

Streamline investment research for hedge funds – AI-powered data collection solutions can help banking and FS
organizations extract relevant information through MS Excel. Spreadsheets can be created that capture listing information
from real-estate websites and interactive site maps. This reduces time spent on gathering the right information and provides
ready data for modelling

Improve post-trade allocations – Once allocation instructions are received through any format (email, Excel, PDF, etc.), the AI
solution can confirm the customer’s trade versus internal details, generate an exception report for any trade mismatches and
compare the instructions against client sub-accounts. Finally, the client allocation instructions can be pushed to the allocation
platform. Besides accelerating the time taken to execute post-trade allocations, this can reduce effort by nearly 60%

Enable intelligent pricing set-up – In this scenario, AI solutions can be programmed to retrieve emails from fund managers,
custodians and prime brokers. The context of each email is interpreted and supplementary sources are referred to for pricing
updates. The solution will automatically apply business rules, execute what-if scenarios and update the final client prices,
thereby slashing effort and boosting pricing set-up efficiency

Simplified data-related functions – Here, information can be gathered from unstructured sources such as social media, web
content, research reports, and archived data for purposes of business research, anti-money laundering and creating letters
of credit. Data can also be appropriately classified whereby unstructured data is categorized to classify customer documents,
business reports and contractual documents

Anomaly detection for credit fraud - Using machine learning to observe behavioral patterns, analyze and detect hidden
correlations in data and identifying possible fraud scenarios in real time

Intelligent RPA-led capabilities – NLP/NLG can leverage language detection, text mining and text analytics to drive
interactive automation through chatbots for the purposes of contract reviews and customer service. Sentiment analysis can
assess risk by closely monitoring and analyzing targeted audiences, customer feedback and social media. Relevant search
results, based on internal and external data such as search engine output, can be used to verify identities and classify search
engine queries

External Document © 2019 Infosys Limited

Exploring AI and automation
opportunities in banking
With extreme diversification taking place
in the banking industry, the applications
of AI and automation go beyond mere
IT operations. Today, these technologies
have the potential to revamp core banking
services such as retail lending, commercial
lending, payments, treasury, trade finance,
and cash management.
Let us look at some real-world issues
addressed by Infosys to better understand
the power of AI in banking.
Driving hyper-efficiency in shared
services – A leading US bank wanted
to roll out a service strategy that would
automate operations and IT to achieve
US $1.4 billion in cost savings by 2020.
However, their landscape was riddled with
labor intensive, repetitive and unstable
processes that required frequent redesign.
Infosys established a framework to
identify and prioritize process automation
opportunities through a high-level cost-
benefit analysis. We created a business case
framework and defined all parameters for
robotic process automation (RPA) decision-
making. Through this approach, Infosys
helped the client identify and implement
over 500 RPA pilots within one-and-a-half
years, getting them ready to meet their
2020 goals.
Streamlining mortgage servicing with
automation – A large US-based bank
wanted to leverage the latest automation
technologies like RPA and cognitive
automation to identify opportunities
to improve operations, reduce cost and
enhance the customer experience. The
challenges lay in the inability to handle fast
analytics and high process dependency on
large documents, which resulted in delays.
Infosys used bots to log into different
systems and collect and download
documents from multiple sources, thereby
streamlining proof of claim and notice
of payment change processes. We also
standardized templates so bots could
use business rules-driven processes to
reconcile collections. The new solution
helped the client save US $600,000 in 2
years and reduce full-time equivalent (FTE)
by 50-75%.
Automated credit scoring model
improves business performance – A
leading US bank wanted to develop a
model for credit decision-making in its
commercial vehicles business. Besides
mitigating risk and being compliant
with BASEL II standards, the model had
to predict the likelihood of payment of
bills in a complex manner with regular
performance monitoring. Infosys enabled
comprehensive validation on the scorecard
for loss, delinquency and override analysis.
We also assessed the performance of the
model using statistical tests. The new
system has improved scorecard findings by
allowing the business to plug gaps.
Automated LC issuance enhances
customer experience – Looking to
optimize the process for customers visiting
a bank to issue a letter of credit (LC) by
submitting the required documents, the
bank wanted to automate its inland LC
issuance process by directing the task to
their AI based automation platform and
assigning it to a bot. Infosys leveraged
machine learning and cognitive bots to
classify documents, extract and validate
relevant fields from the submitted
documents, perform data entry and
compliance checks, and authorize the
transaction. A reviewer was used only to
handle exceptions, fix errors and retrain
the ML model. The automated model has
helped the bank reduce FTE by 26% and
improve turnaround time by 50%, thereby
servicing 80% LCs within 30 minutes.
Realizing greater business value
through AI accelerators – A financial
services major was looking to identify
the right resources to establish an AI
accelerator across different business units
that operate independently. However,
their horizontal service was servicing
multiple lines of business, all of which
had varying AI maturity levels. Infosys
conducted a high-level opportunity
assessment to determine desirability,
feasibility, viability, and benefits. We
leveraged expert skills and technology
resources to accelerate execution
and aligned financial metrics with the
business case. We also identified existing
AI capabilities and potential reuse of
elements from previous use cases. Lessons
learned during execution were fed back
into the model and relevant metrics were
used for continuous benefits tracking. The
cross-BU accelerator has helped the client
realize benefits through value levers,
accurately calculate ROI and reduce cost.
Improved efficiency from re-
engineered retail corporate banking
processes – A leading private sector
bank wanted to deploy enterprise-wide
RPA and intelligent automation (IA)
across its various corporate and retail
banking functions. They chose a leading
AI-powered platform to design, develop
and deploy RPA and IA tools, which raised
concerns owing to business complexity
and compliance. Infosys prioritized
opportunities based on business impact
and implementation complexity. We
also documented ‘as-is’ and ‘to-be’
process flows, deploying 6 RPA and 5
ML processes in the AI platform with the
requisite validation, exception handling
and testing. The new platform with its
next-gen tools is helping the client reduce
cost and optimize processes, thereby
improving SLA adherence, turnaround
time (TAT) and accuracy.
External Document © 2019 Infosys Limited
 Infosys AI and automation
solutions
Recognizing the value of AI and
automation, Infosys has been making
strategic investments and acquisitions over
the past few years to grow its portfolio of
services, products and skillsets. Today, this
service line has helped over 200 clients
drive value and enabled scaled adoption
across enterprises.
Built on the four pillars of AI and
automation consulting, AI platform build,
value at scale, and cognitive solutions,
Infosys AI and Automation addresses
complex business problems for clients
depending on their organizational needs
and maturity using the entire spectrum
of AI enabled automation. Our solutions
range from deterministic to smart and
algorithmic automation all the way to
autonomous automation, thereby
delivering increased sophistication
and helping clients realize incremental
value. These include script-based
RPA for low automation needs,
prescriptive/predictive analytics and
chatbots where smart and algorithmic
automation is used for self-learning,
and machine learning for autonomous
automation.

Alliances with leading

3rd party tools
Azure
Machine Learning

Conversational
AI
Cross functional
AI talent

Robotic process
automation
AI and automation (RPA)
Cognitive
consulting 200+
…and more solutions
global clients

Cognitive
automation

Automation
AI platform Value at projects
build scale
Machine
learning

Recognized by
Deep
Computer learning
industry analysts
vision & speech
Text
analytics

Figure 2: Overview of Infosys AI and automation services

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Accelerate your AI and automation journey with Infosys
The Infosys approach to AI and automation focuses on first Based on the organization’s automation maturity, a roadmap is
understanding the needs of the organization through the following designed and a phased implementation model is followed to
key tasks: achieve the desired goals, which include:
• Formulate the right AI strategy by choosing the right processes for • Enabling lean operations through business process re-
transformation
engineering
• Select the right technology solutions for RPA technical architecture
• Ensure execution governance for seamless decision-making • Implementing automation through advanced learning, analytics
and reporting
• Focus on change and value by prioritizing the impact of technology
on people • Achieving humanistic AI through contextual awareness and intent
• Create the right target operating model through a dedicated center recognition
of excellence (CoE)
• Align with success metrics across the enterprise
• Provide ongoing development and support to integrate new
applications

1. Process taxonomy (with FTE /AHT) 2. “Day in life of” 3. Detailed discovery

Process deep dives

Process mining

VOC/Ethnographic surveys

6. Impact and business case 5. Standardization 4. Scoring and levers identification

7. Redefined process using AI and automation

8. User stories 9. Execute
Lego blocks

Figure 3: Reimagine processes - Infosys AI and automation methodology

Figure 3: Reimagine processes - Infosys AI and automation methodology
With proven expertise across several
successful implementations – whether
for the initial stages of RPA programs and
pilots or the advanced stages of defining
the AI execution lifecycle with AI, ML and
cognitive capabilities – the Infosys approach
helps clients identify processes, uncover
gaps, build relevant business cases, choose
the right tools, standardize and redefine
processes, and enhance user experience.
By engaging with clients through all stages
of their AI maturity journey, we help them
realize clearer and higher value faster by:
• Identifying the right problem to solve and
then solving it using our CoE ecosystem
that cuts across consulting, technology
and operations
• Bringing the best talent from leading,
world-class academic infrastructure and
continuously retraining, enhancing and
up-skilling personnel, thereby fostering
niche expertise to keep pace with the
ever-evolving AI technologies
• Leveraging a robust ecosystem consisting
of partnerships with leading solution
providers and affiliations with industry
bodies dedicated to AI and automation
along with strategic investments in and
tie-ups with niche start-ups to offer our
clients the best of both worlds

Learn how Infosys can help your organization unlock the power of AI and automation and scale quickly. Connect with us at
aiautomation@infosys.com.

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About the Author
Jessica Radow nce Practice, Financial Services Domain Consulting Group, Infosys
Sales Director - Americas
AI & Automation Services, Infosys Limited

Jessica has a strong understanding of the artificial intelligence (AI) and robotic process automation (RPA) marketplace
and its applications for business process improvement. She has over 15 years of experience in selling complex technology
within emerging markets and is heading sales for financial services, healthcare and insurance industries in her current role.
Prior to joining Infosys, Jessica served as a Sales Executive at WorkFusion. As part of Workfusion’s initial launch team, she
focused on the financial information sector, managing key accounts such as Thomson Reuters, BlackRock and Wolters
Kluwer. During this time, Jessica implemented the first intelligent automation platform within numerous companies.
Jessica graduated with honors from Brown University. During her time there, she led the Brown University Entrepreneurship
Program - the largest student run organization on campus. Jessica is a born-and-bred New Yorker, and has a deep passion
for the city and its people. She sits on the Young Members Board for the Museum of the City of New York and is involved in
other organizations that support the rich history and residents of New York City.

For more information, contact askus@infosys.com

© 2019 Infosys Limited, Bengaluru, India. All Rights Reserved. Infosys believes the information in this document is accurate as of its publication date; such information is subject to change without notice. Infosys
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