Debunking 5 Common Myths About WLA and Core Outsourcing

Banks and credit unions are outsourcing their core banking systems at a faster rate than ever before. In fact, according to Accenture, more than 6 in 10 banks are in the process or planning stages of moving to a new cloud-based core banking system.

But contrary to popular belief, core outsourcing and workload automation (WLA) are not mutually exclusive. In fact, automating processes both within and outside the core offers numerous benefits, including faster ROI, greater process efficiency, a better employee and customer experience, and getting more time back for staff to focus on higher-level, strategic initiatives.

5 common myths about WLA and core outsourcing

Here are the most common misconceptions about WLA and outsourcing your core:

1. Automation is redundant if we outsource our core.
   Even if your core banking processes are managed off-premises, numerous workloads and processes remain in-house. Beyond the core, workload automation can integrate scripts of any language into end-to-end, cross-platform workflows and manage siloed technologies from legacy systems to the cloud, virtualization, and Internet of Things (IoT) through a single, integrated platform.
   
   For example, WLA can automate document imaging and storage processes to streamline workflows and take advantage of limited resources. Similarly, automation can help streamline other key workloads, such as the automation of extract, transform, and load (ETL) processes in a repeatable way for data warehouse, AI, and other applications. This reduces system complexity and minimizes the need for human intervention and effort.
   
2. WLA only makes sense for large institutions.
   Leaders at community banks and credit unions often assume that workload automation is a solution designed only for large-scale operations, due to limited technology budgets and internal resource constraints. However, the introduction of cloud-based solutions has leveled the playing field, making workload automation more accessible and cost-effective for organizations of all sizes. Cloud platforms offer outstanding scalability and affordability by eliminating the need for extensive infrastructure investments and reducing maintenance costs.
   
   

   If deployed optimally, a modern WLA&O solution like OpCon that offers enterprise-level power and flexibility more than pays for itself. In fact, organizations that use OpCon to automate hundreds or even thousands of manual tasks on the daily can save over $375,000 on average every year. *

   With customizable solutions and pay-as-you-go models, even smaller community financial institutions can leverage workload automation to streamline their operations, improve efficiency, and compete with larger institutions.
   
3. Automation limits control and flexibility.
   Another misconception about workload automation is that it’s inflexible and unable to adapt to evolving business needs. However, modern automation solutions are designed to be highly adaptable and customizable. These platforms allow financial institutions to create workflows that align with their specific requirements, enabling them to accommodate changes and scale operations seamlessly. Whether it's integrating new products and services or complying with regulatory updates, workload automation provides the necessary flexibility to adapt quickly to market dynamics and organizational needs.
   
4. WLA compromises data security and compliance.
   When cloud services were first introduced nearly two decades ago, many industry leaders were concerned about perceived shortfalls in security and regulatory compliance. Time has shown that workload automation actually enhances security and compliance by easing the management of role-based privileges and automatically logging all activities to create an audit trail. It also enhances business continuity and disaster recovery protocols through self-healing routines designed to keep operations humming even during unplanned interruptions.
   
5. Automation is coming for our jobs.
   In light of the recent emergence of ChatGPT and other large language AI models, many in the industry are understandably concerned that the rise of automation will lead to significant job losses in financial services and other industries. While it’s true that automation was developed to replace repetitive and mundane tasks, its purpose is to augment human efforts, not supplant them entirely. By automating routine tasks such as data entry and report generation, employees can focus on more strategic and customer-centric roles that require critical thinking and creativity. Workload automation enables employees to utilize their skills effectively, leading to increased job satisfaction and better overall productivity.

Modern WLA&O solutions like OpCon are enabling financial institutions of all sizes to automate hundreds or even thousands of manual tasks each day. As a result, they’re able to reduce or eliminate costly human errors from their business-critical processes, harmonize communication among cloud-based and legacy systems to enable optimal operational efficiency and performance, and give their staff time back to focus on the latest strategic initiatives like digital transformation.

Every month you go without implementing OpCon, you miss the opportunity to contribute over $30,000 back to your business.* That means the longer you wait to adopt OpCon workload automation and orchestration, the more your bottom line and operational efficiency will suffer.

As competition for market share grows stronger by the day, how long can you afford to wait?

*Based on conservative internal calculations by SMA Technologies for OpCon customers that automate at a pace of 105 seconds per task (i.e., 30 seconds to key a manual task, 60-second wait time between tasks, and 15 seconds to verify successful completion of the previous task) at a rate of $34.85 per hour (i.e., average hourly rate for a full-time employee assuming no premium pay for overtime, holidays, nights, or weekends). These calculations don’t include any expenses for errors, re-processing, or other manual operations-related items.