HBL’s digital journey fueled by automation

For HBL Bank, digitalization is a means to a greater end: the financial inclusion of unbanked and under-banked communities. HBL’s customer base now stands at over 37 million, the largest in the industry, and triples its numbers from just five years ago. HBL's digital transformation journey—led by HBL Konnect, HBL Mobile, and robotic process automation (RPA)—has revolutionized the way the Bank connects with its clients, enabling them to manage their finances with ease.

HBL's team of experts, led by Syed Azeemushan Afaque Ahmed, Head of AI & Robotics at HBL, strongly believes that it a digital transformation is crucial for its customers. “We initiated HBL’s journey into intelligent process automation in 2021.”

With complete backing from its leadership, HBL implemented the technology across various functions in the Bank - first picking sub-parts of processes and then eventually for end-to-end processes in compliance and a few areas in operations.

Within a short span of three years, HBL is well on its way to becoming a unique success story in Pakistan with more than 100 live automations built and managed by a dedicated team of engineers and analysts forming a dedicated center of excellence (CoE). These early successes planted the seeds of a bolder AI and automation strategy that would truly reshape the Bank and drive digitalization not only in HBL but also set new practices in the region.

To kick-start this vision, a large-scale proof of concept (PoC) was needed to bring it to life by streamlining an entire process from start to finish. This would demonstrate the far-reaching benefits of automation and pave the way for a wider roll-out.

We aimed to create a process that redefined banking, one that would elevate our clients’ experience. After all, we are more than just a bank.

Syed Azeemushan Afaque Ahmed • Head of AI and Robotics at HBL

Naturally, as happens in any drastic change in the long-standing way of doing work, resistance to change is expected. Identifying processes for transformation is often the simplest part of any transformation project. However, the true challenge lies in managing change and fostering a collaborative spirit among users. Collaboration was the only way to go the next mile, and as an outcome, Azeem teamed up with Mahin Choudry, Head of Compliance Automation and Digital Enablement at HBL.

Sowing the seeds of automation

After much deliberation, the process of sanction screening for new customers in the compliance department was shortlisted as the perfect candidate for automation. Every time someone opens a bank account, HBL uses industry-leading software to ensure that they are not on any international and local sanction lists. This flags any potential issues to ensure HBL remains compliant and does not create an account for someone who should not have one. This process must be completed in three hours to ensure the Bank does not keep customers waiting.

Automation was not just a technological necessity for the compliance department; it became a customer-centric requirement. We could not keep new customers waiting, yet just hiring more compliance staff would become unwieldy.

The HBL Team

And so, the robots arrived. 15 digital workers, operating 24/7, now handling over 80,000 cases each month, end-to-end. Today, the bots perform 95% of all new customer screenings with near-perfect accuracy, leaving only a fraction for human intervention, freeing up compliance officers to focus on more complex cases. Yet, getting there was not so easy. When asked about the challenges they faced, Azeem and Mahin Choudry pause, reflecting with the smiles of those who have realized a goal despite the barriers and setbacks “It was a journey,” Mahin says with understatement.

Pruning the challenges within compliance

The success of HBL’s automation project was not just a matter of numbers and statistics; it was a real, human story, brimming with determination, hard work, and dedication. “The senior management was fully backing us,” Mahin continues, “And even at the junior level, staff were intrigued by the software and the idea of no longer having to work overtime.”

But between these groups, there was a resistant population. Azeem adds, “Some had anxieties about automation stealing their jobs. Others simply did not understand it or asked why we had the right to question their ways of working.”

It was an uphill battle. “We needed a thick skin to keep pushing through,” Mahin admits, Self-doubt crept in, and the duo wondered if they had bitten off more than they could chew. She adds, “We often thought ‘maybe they are right’ when we were faced with constant resistance.”

Simple explanations and encouragement were not enough to shift entrenched mindsets. They needed hard data. Irrefutable proof of automation’s value. Updates flew out that showcased the robots’ impressive performance, but pushbacks and complaints persisted, with some even questioning the data’s accuracy.

Mahin smiles, “Then, one day it just changed. The cynicism that once permeated the air dissipated. The impact on the process became undeniable. Staff morale soared and we were able to see a real shift in mindsets around automation.”

Tackling the biggest fear head-on, the HBL CoE team recalls, “We assured everyone: no one would lose their job to automation. If they had less manual work to complete, they would move up, not out.” HR played a crucial role in this, providing career development support and ensuring a smooth transition for those impacted into different roles requiring value creation.

“We celebrated every small win,” says Azeem. “We gave out certificates and rewards to those who embraced automation. Building relationships was key. We understood their pain points, sat down for a candid chat, and helped them navigate their jobs alongside the bots.”

Growing for the future

Success in compliance is fueling a wider digital transformation. Today, the automation team boasts 50 robots managing 135 processes across the business, with ambitious plans for 150 more by the end of 2024. Looking to the future, the dynamic duo envisions infusing AI into the Bank’s processes, equipping the bots to handle new scenarios, and evolving regulations with ease.

Wherever a manual, repetitive task exists, I’d like to automate it, freeing staff for more challenging and rewarding roles.

Mahin Choudry • Head of Compliance Automation and Digital Enablement at HBL

Azeem echoes this sentiment further, with his sights set on a “near zero back office,” where every automatable process runs seamlessly. He declares, “We see a future where automated workflows minimize manual intervention. That is the future we are building.”

HBL stands poised to become a truly digital bank, with a lot more end-to-end processes becoming more automated.

Planting the seeds for success

Abrar Mir, Chief Innovation & Financial Inclusion Officer at HBL, states that based on the successive learning of smaller to now large-scale POCs, we as an organization now have much greater confidence to move towards our goal of “near zero back offices,” so that in a fully digital future, that is not very far, we can offer real-time decisions and product and service to our customers on a 24X7 basis. He further goes on to say that the customer of the future is not going to settle for anything less, and that is the bare minimum every organization will have to deliver to remain relevant to customers of the future.

HBL’s journey offers valuable advice for any organization embarking on a similar path. With a voice seasoned by reflection, HBL opines:

• “Know what you want to achieve and why.” HBL’s unwavering focus on its customers was the key.

• “Get the right people. You need experts who know the inside workings of the process being automated, the pain points, and the potential pitfalls.” Need for a team that not only understands the technology, but also the emotional complexities of the processes being transformed.

• “Celebrate successes, but also use setbacks as opportunities to adapt and evolve.” Change Management is another crucial element. “Put people at the heart of the process and build relationships.”

• Importance of leadership sponsorship. “Having the Executive team and BOD behind you is crucial,” to help achieve something which was once perceived as impossible.

This is not just a story about spreadsheets and robots. It is a saga of transformation to the benefit of customers. The path to digital success lies in the courage to change a system and a commitment to put people first. It is about nurturing potential. HBL has carefully cultivated a culture of change, one where automation enables human workers to reach their full potential and is now blossoming in this new digital landscape.