Case Studies in US companies that have adopted new technology in their finance operations
Walmart, JP Morgan & Chase, Accenture, and Bank of NY Mellon Group have all recently implemented new technologies in their financial operations, including robotic processing automation, machine learning, and advanced data analytics. To identify these case studies, I included only U.S. based companies, and looked at those companies that are industry leaders, to ensure the case studies were best-in-class examples. You'll find a deep dive of my research below.
As of 2015, Walmart has been using SAP HANA's in-memory data processing technology to collect and visualize data in real-time, as well as to process its high volume of financial transactions (roughly half a trillion) within minutes. According to this article, "Wal-Mart applies HANA to obtain data and insights at a scale and speed that were previously unavailable." Walmart chose this solution to improve operational efficiency by consolidating processes and resources. The company reports that SAP HANA enables them to complete 94% of data queries within two seconds, process hourly data updates at a speed of three million rows per minute, and generally handle to company's 200 billion rows of data.
To streamline its financial reporting processes, Accenture has recently implemented SAP HANA as a data mart in the public cloud, using it as an analytics platform. The end goal of this adoption was to "take advantage of the new ability to access live data and deliver analytics capabilities that were never available before, starting with the finance domain." This new architecture uses advanced, real-time analytics, generating live data and providing financial reporting tools in user-friendly ways. Accenture's migration to this system has reduced load times by 90%, increased data refresh frequency to 50 times per month, and reduced data refresh effort by 98%. According to finance director Scott Wilson, "The SAP HANA data mart initiative has changed the game around our finance reporting. We have been able to leapfrog a complex and constrained environment and create some very powerful reporting capabilities that we are only getting started with."
JP MORGAN & CHASE
This financial services company has recently invested in machine learning through its Contract Intelligence (COiN) cloud-based platform, designed to analyze the company's 12,000 annual commercial credit agreements. This technology has enabled the company to reduce 360,000 hours of manual analysis down to seconds. The platform has also helped the company reduce its number of loan-servicing mistakes. In addition, JP Morgan implemented a machine learning solution in 2015, known as Emerging Opportunities Engine. This solution helped the bank analyze transactions and predict which clients were most likely to engage in another deal. This solution was first applied to Equity Capital Markets, and has since expanded to other markets, including Debt Capital trading.
In partnership with technology company Blue Prism, this bank has been investing heavily in robotic processing automation, particularly in the form of bots. In May of 2017, the bank announced that it had implemented more than 220 bots over the past 15 months, with functions such as processing payments, transferring funds, and finding data errors. The bank is using these bots to streamline and automate operations to relive its workforce from repetitive and mundane tasks. Already, the bank has seen positive results from these bots, including 88% improvement in processing time, 100% accuracy in account-closure validations, and 66% improvement in trade entry turnaround time. Moreover, the company estimates that its bot responsible for funds transfers is single-handedly saving the company $300,000 annually. In another example of the efficiency of these bots, the bank says "bots that reply to information requests on financial statements from auditors, enabled it to cut down its response time to 24 hours from 6 to 10 business days. The process previously required humans to manually sift through large swathes of data stored across six different IT systems."
To wrap up, Walmart, JP Morgan & Chase, Accenture, and Bank of NY Mellon Group have all recently implemented new technologies in their financial operations, including robotic processing automation, machine learning, and advanced data analytics.