Automation has huge potential to transform how financial services firms operate, delivering benefits for both employees and customers. Automation can improve the efficiency of internal operations, accelerate decision-making, and enhance the overall customer experience. In the financial services industry, satisfied customers are six times more likely to stay with a bank than those who are dissatisfied. That’s why, when implemented effectively, automation can play a vital role not only in attracting new customers but in deepening loyalty among existing ones.
At its heart, automation is designed to simplify and streamline operations. However, if automation isn’t implemented correctly, it can introduce complexity, risk, and fragmentation. The proliferation of automation tools, combined with the rapid growth of interconnected systems has created a tangled web of interdependencies that are becoming increasingly difficult to manage. In many cases, automation tools are deployed as a point solution to tackle a single task, such as credit score checks and approvals, rather than as part of a comprehensive, business-wide strategy.
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This has resulted in financial services firms managing an average of 50 endpoints to execute tasks that are part of a business process. Without a fundamental shift in approach, financial institutions risk ‘Automation Armageddon’, due to a lack of control and the risk of core business processes failing.
Managing automation complexity in financial services
As automation becomes more ingrained, financial institutions are facing new operational risks that threaten efficiency, compliance, and agility. For instance, needing to deal with a large volume of interconnected systems that deliver mission-critical processes, such as transaction settlement and anti-money laundering checks. With process complexity increasing, a lack of control heightens the risk of these core operations failing or becoming disrupted.
At the same time, evolving regulatory requirements, such as those introduced by Basel III and PSD2, are making compliance increasingly difficult. A lack of control over complex processes contributes to rising compliance risks, especially as many firms lack the visibility needed to ensure regulatory adherence across all automated processes. This can result in audit failures, delayed reporting, or regulatory penalties.
As automation scales, it becomes harder for financial institutions to gain insights into what’s working, what’s redundant, and where bottlenecks exist. This lack of visibility hinders leaders from driving continuous improvement and demonstrating governance – ultimately, making it difficult to ensure automation is delivering real value.
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By GlobalDataWhy AI implementation and scalability remains a major roadblock in financial services
Many FS firms are also keen to expand AI capabilities, integrating machine learning models, predictive analytics, and AI agents to uncover new opportunities. However, many firms today are struggling to scale and operationalise AI, highlighting the difficulty of fully embedding AI-driven processes end-to-end. In fact, 79% of FS firms report that they face challenges being able to scale and operationalise AI across their organisations.
Another hurdle is governance and compliance. As AI becomes more embedded in decision-making, firms have a responsibility to understand how models are trained, deployed and maintained. Transparency is crucial, particularly in a highly regulated industry like finance where AI-driven decisions must be explainable and auditable.
To mitigate these risks, financial services firms must implement “guardrails” that combine deterministic workflows with the dynamic nature of AI capabilities. By clearly defining operational parameters, firms can ensure AI operates autonomously while adhering to organisational policies and regulatory standards. This approach will allow the finance industry to leverage AI’s adaptability and predictive power within structured, reliable processes without sacrificing compliance or control.
Unlocking AI’s full value with process orchestration
AI systems need to be seamlessly integrated into existing business processes to ensure they deliver real value. Without a cohesive approach, AI often functions in isolation, requiring manual effort to synchronise with other process endpoints. This disconnect leads to inefficiencies and makes it impossible to “control” AI sufficiently.
To fully realise the benefits of AI, financial institutions must embrace end-to-end process orchestration as a core part of their business and IT strategy. Process orchestration and automation is essential to tame complexity, operationalise AI, and accelerate transformation. Firms can design, manage, and improve the processes that underpin their business, no matter what the process entails or where they run.
Beyond compliance and cost reduction, process orchestration enhances the customer experience. By ensuring seamless integration between automated systems, financial service providers can deliver truly digital-first experiences. Tasks that were once cumbersome – such as opening a bank account or processing a loan application – become frictionless, improving customer satisfaction and business agility.
Embracing automation without losing control
In an era where the adoption of automation is accelerating, financial institutions must break down silos to remain competitive – or risk falling behind. A well-defined process orchestration strategy is the key to unlocking AI’s full potential. This approach maximises efficiency, maintains compliance, and ensures AI-driven processes work in harmony.
Daniel Meyer is Chief Technology Officer at Camunda
