You’d be right to expect this has something to do with financial services, but doesn’t! A lot of the discussions floating around on this topic have very little to do with FinTech.
Most of the discussed automation and where it’s expected to occur is fairly obvious. In financial services, the automation is focused on taking processes that involve paper+people, where people create a compounding error. The automation reduces that cost center by reducing the number of errors and through that automation is valuable.
An easy example where a company like Dwolla can help customers using automation is in the ACH returns and corrections process. An analyst reviewing lines in a batch file and clicking buttons doesn’t really help a business operate more efficiently and it introduces a number of things that could go wrong. Automating the ACH return process through an API saves everyone time.
By and large, automation has allowed financial businesses to reinvest in more people where they can generate greater value for the company. Handing paper between two people is not typically*1 a high value task.
Back office automation isn’t really obvious to individuals in organizations who don’t have access to, or read, the P&L. It might show up as increased margins for the accounting folks and leadership, but otherwise its success fades into the background. It also seems to be the focus of angst for those holding jobs that could be displaced by future automation, as well as those among us who believe they are important/creative/human enough not to be replaced by an automated task. Continue Reading