The banking, financial services, and insurance (BFSI) business have seen more transition in the last decade than it has in the previous several centuries and the pandemic has just hastened it. The essential distinction now is that digital technologies (IT) are no longer merely a "support function," but have instead formed the cornerstone for how services are offered to customers.
Here are 5 ways that companies can increase their competitive advantage by embracing artificial intelligence for IT operations (AIOps).
#1. Getting Transactions First-time-right
Downtime and page load delays are two of the most common causes of transaction failures. If a transaction fails or takes too much time to complete, customers are bound to leave it. They are unlikely to come back later to complete the deal unless it is absolutely necessary. As a result, slow transaction reaction time is a significant hindrance to a bank's or financial institution's performance.
AIOps improves transaction success by finding system flaws before they become an issue. For example, a good AIOps engine can predict and prevent mass failures caused by unanticipated volume surges, ensuring that service is not disrupted. AIOps can also aid in the identification of patterns in the operation of tools outside of your own ecosystem, such as downtimes or delays in partner platforms. This allows you to select the best partners or even assist existing partners in upgrading their systems.
#2. Solving Problems Autonomously
Monitoring, contrary to popular belief, is not an end objective. Even the best monitoring solutions today merely generate a barrage of alarms for IT professionals to manually do root-cause analysis (RCA) and repair. This results in machine downtime and alert fatigue among team members. Alert fatigue can result in major incidents sliding through the gaps in the BFSI industry, where it is necessary by law to be on the lookout for risks.
AIOps reduces much of the user intervention by contextually assessing data, performing RCA, and autonomously resolving problems. This minimises the mean time to diagnose and fix problems. In fact, a strong AIOps platform can anticipate issues and fix them before they arise.
#3. Breaking Down Information Siloes
Today, every large corporation has a plethora of tools at its disposal. While these technologies aid in the resolution of the problem at hand, they result in knowledge silos that impede organisational efficiency in the long run. Points of failure might be difficult to find even within networked applications since they exist in heterogeneous contexts.
AIOps, which acts as an intelligent monitoring center, can assist break down silos by understanding complicated data from various sources to provide a bird's eye view of operations. It can also manage data in a variety of formats from multi- or hybrid-cloud systems, allowing it to make sense of enterprise chaos with ease.
#4. Enabling Scale
Until the last decade, banks' ability to operate on a global scale was a source of strength. Nevertheless, in today's world of tech-powered banking, scalability has become a strain on the institution's agility and reactivity. Common roadblocks include:
- Infrastructure and apps are struggling to flexibly scale to meet the needs of customers.
- Current data systems are incapable of delivering personalization on a large scale.
- Large cloud operations and hundreds of third-party interfaces increase malware susceptibility and introduce new security dangers.
AIOps can alleviate the overwhelm that comes with scale by providing real-time awareness into sites of congestion, regardless of workload size. It can detect and isolate security issues, perform root-cause investigation, and enable self-remediation. In reality, with each consecutive dataset processing, artificial intelligence and machine learning (AI/ML) models grow better-trained and more efficient, dynamically prepared to handle more and more scale.
#5. Automating Regulatory Compliance
The financial services business is one of the most heavily regulated in the world. Even minor compliance violations can result in hefty fines and penalties, as well as license revocation. However, with today's scale of operations, manually ensuring compliance is very impossible.
AIOps can assist with the processing of massive amounts of data for compliance reporting. It can analyze such data to enterprise/regulatory requirements in order to find abnormalities and take corrective action. It can also be trained to detect compliance breaches in real time and alert users to them.
Adoption of digital technologies is vital for the BFSI industry's growth, if not existence. However, adoption is only the first stage. BFSI players must monitor, manage, and exploit their digital technologies in order to expand. You must leverage your digital assets to get a competitive advantage. AIOps can assist with this.
How Does AIOps Work?
AIOps works best when implemented independently to collect and analyse data from all accessible IT monitoring sources, resulting in a centralised system of engagement. It uses the same procedure as the human cognitive function to do this. The following are the five key algorithms of AIOps:
AIOps should be able to detect the significant 'needles' contained in terabyte-sized data 'haystacks,' based on specified selection and priority parameters, by combing through the massive amount of available IT data, assessing it, and selecting appropriate data items.
AIOps examines pertinent data, identifying correlations between data items and putting them together for further analysis.
In-depth analysis enables AIOps platforms to clearly identify the core causes of problems, events, and patterns, resulting in clear insights that can be used to inform action.
AIOps must also operate as a cooperation platform, notifying the appropriate teams and individuals, offering them important information, and promoting successful collaboration despite the possibility of operator distance.
Finally, AIOps is developed to adapt to and fix issues automatically, dramatically enhancing the precision and flexibility of IT operations.
With tough competition from digital natives, increased cybersecurity concerns tightened compliance processes, and growing customer expectations, BFSI firms must seek new and inventive methods to succeed. As a result, greater emphasis has been placed on enhancing operational efficiency, correcting mistakes and downtime, and providing an exceptional customer experience.