Wole Adesiyan, head, business transformation, Stanbic IBTC Bank PLC, spoke to Jumoke Akiyode-Lawanson, ICT editor, BusinessDay, on the future of banking in Nigeria, Stanbic IBTC Bank’s recent deployment of robots, artificial intelligence otherwise known as AI, its notable impact on the bank’s operations in enhancing efficiency and improving the overall customer experience. Excerpts.
What factors triggered Stanbic IBTC Bank’s interest in the adoption of robots?
We wanted new. We wanted speed. We wanted efficiency and accuracy. Also, constantly raising the bar is a key value for us at Stanbic IBTC and leading the implementation of all the possible applications of Artificial Intelligence in Nigeria was a good way to raise the bar.The Robots have been in operation for about three months now.
Tell us about the first set of robots deployed and the operations they are powering. How exactly are they making banking more seamless?
Beyond the creation of our go-to girl, SAMI, for front office engagements, the BlueBots were designed and deployed to reduce human or manual intervention, eliminate errors and reduce cost of processing in our reconciliation processes. Reconciliation turnaround time has been reduced to 1 minute 30 seconds. Other functions include anti-money laundering check – a regulatory requirement for account opening; credit risk management system check – also a regulatory requirement for availing credit to borrowing clients; cheque confirmation – dissemination of cheque data to specific business units to make confirmation faster, reduce returned cheques due to dishonored cheque report and improve client experience; and treasury bills/bonds fee processing – to manage fee posting for booked treasury bills/bonds to eliminate errors that may lead to income reversal from income account.
What do you consider as the outstanding features of the Stanbic IBTC robots for which the bank is investing in its deployment?
The robots can be deployed across a variety of departments within the bank while exhibiting various groundbreaking features. Take for instance, our operational center located at Ilupeju, Lagos; we deployed the robots to expedite account origination and servicing for anti-money laundering transactions with a reduction in turnaround time. The robots also facilitate processing as well as clearing for inward cheque confirmation. Some outstanding features of the BlueBots are its ability to execute web scrapping and web data extraction; launch web browsers; log into secured web pages with its own username and password; populate Microsoft Excel templates and route as instructed. Others include its capability to launch Microsoft Outlook, read, compose and send emails; download files and upload files to different platform and execute predefine actions with the help of a scheduler.
Will the deployment of robots to drive your services be limited to Lagos? What plans do you have to cover other locations?
The BlueBots manage middle and back office activities, which are not limited to a geographical location. The aim is to ensure the robots are deployed across all possible workable locations across Nigeria which would improve our service quality to all our customers regardless of the location from which they are banking with us.
What is the short, medium and long term cost implication of developing and deploying these robots?
Beyond the investments in our people, these robots have come at zero cost to the organisation. We owe this success to the ingenuity and creativity of our colleagues. Don’t get me wrong, this is not to say we are not investing in state-of-the-art information and communications technologies or technological innovations, which of course we are constantly doing and heavily too. We remain one of the most innovative and forward thinking financial services organisation in the country and Africa at large.
Has Stanbic IBTC partnered with other cutting edge tech companies in executing this project?
No. This was a project developed and deployed strictly by an in-house team with support from Standard Bank South Africa.
What feedback can you share since the tools were deployed in service?
The introduction of robots is proving to be a game changer in our operations by bringing improved operational efficiencies, shorter resolution times, enhanced data security and improved data handling.
When should we hope to see robots or other devices powered by artificial intelligence welcoming customers to Stanbic IBTC branches, and even serving as tellers?
Stanbic IBTC is the bank of the future and the bank of the future is now and I can assure you that this is closer than you think.
How are the robots protected against external interference by humans and other factors that may hinder their performance or breach the security?
Ensuring the security and integrity of our system is at the core of every solution and application we deploy in offering impeccable services to our valued customers at Stanbic IBTC Bank. Therefore, we pride ourselves on the high level security that is provided by our in-house teams to the applications and solutions developed and deployed.
Robots and such other devices are known to reduce the need for human interface and by extension affect the employment of people. One survey stated that financial institutions worldwide would save $1 trillion in projected cost savings from adoption of AI. Have you taken this factor into account?
Definitely, we believe in preparing for the future without ignoring our environment and the culture of our people. Here in Nigeria, the average individual still desires human interaction when dealing with anything as sensitive as money. Maintaining a hybrid bank structure will keep us ahead of the curve. We also encourage our colleagues through learning and development to prepare for a future that includes Artificial Intelligence and Robotics Process Automation. If a machine can do your job, prepare for a better one.
The deployment of the robots signals the continuation of new wave of disruptive digitization and innovation being applied by Stanbic IBTC, taking into account the launching of a fully digital self-service branch, chatbot, innovation lab, virtual banking and personal teller machines. What next are we expecting from your stable?
Innovation to redefine and improve how we serve our customers is what drives us. We can only say this to our stakeholders – fasten your seatbelts and enjoy the ride.
Augusto & Co, in its 2018 Consumer Digital Banking Satisfaction Index Report, rated Stanbic IBTC Bank as the Best Digital Bank in Nigeria. How do you react to this assessment?
This is very positive feedback that shows that we are setting the example. However, it is also showing us that a standard has been set and we need to constantly raise the bar in providing customer satisfaction, digitally or otherwise.
Fintechs are steadily encroaching into conventional banking and using AI as backbone. Should this be a source of concern to banks?
Any bank that has plans for continued relevance will invest in Artificial Intelligence, Big Data and Machine Learning to ensure that the customers of today and the future are catered to. There is no room for banking as usual anymore, it is important to change the game while you still can. So, should fintechs be a source of concern to banks? No. Instead, Banks should learn from these fintechs and create avenues for partnership where necessary.
In today’s banking industry, some of the key issues are around customer service, risk management, efficiency and regulatory compliance. How are these issues addressed with the use of robotics in your operations?
AI has increasingly refined and elevated the ability of machines to study data in order to detect patterns that then allow our systems to organise information, identify relationships, make predictions and detect anomalies. Robotics and AI have also helped to enormously improve the quality of service to customers and also our back end operations; from providing information on demand to customers to ensuring a significant reduction in manual intervention as well as eliminating errors which the robots are able to identify effortlessly.
Data analytics has become an important component of growth and sustainability for any business. This is particularly so for the financial services industry which is a repository of huge data that can be analyzed for valuable insights to boost service delivery. How well configured are the robots deployed, to be able to identify opportunities for new businesses or modification of existing processes for better service?
At the core of our strategy is the need to transform data into deep and well-defined insights. Insights that provide fresh perspective on the business environment, identifying what’s working and fix what isn’t and innovate in ways that make the lives of our consumers exciting. So leveraging the power of big data and analytics, we are able to turn large amounts of data into actionable knowledge which in turn empowers us to leverage new opportunities that present themselves via this process. Currently the Bluebots are configured to monitor and execute certain functions, and as with technology, we would be constantly upgrading their abilities to take on more functions.
Can we rightly say that the era of artificial intelligence in the Nigerian banking industry is here?
Definitely, the adoption of artificial intelligence in the Nigerian banking industry even though is at a nascent stage is well and truly in motion and we are happy to be at the fore-front of driving and deepening stakeholder buy-in. We are also committed to making significant corporate investments over the next few years as part of our consumer engagement strategy.
