Why culture is key: Bringing your credit colleagues on board with your automation overhaul 

Ask a finance professional how their working day has changed in the past five years and they’re sure to mention automation. Some teams have brought AI into their everyday, while others have stuck with paper-based processes. 

No matter where your organisation is in their automation overhaul there are many steps to consider when climbing the credit maturity curve. Perhaps the most overlooked factor of them all is people, the employees expected to work with new technology.  

Join us as we explore the link between people and transformation, the importance of buy-in from your colleagues and the benefits automation brings everyone. 

Stakeholder buy-in: the ultimate automation challenge 

A recent global survey revealed that more than half (52%) of digital initiatives fail to meet businesses’ targets.

One of the strongest suggestions why, is the volume of changes in the modern workplace. According to Harvard Business Review, the average employee is hit by 10 change initiatives a year. Individuals are at risk of ‘change fatigue’ and many automation projects stall as a result – not because of technology, but because of people. 

63% of managers cite culture as the biggest barrier to automation. Often because finance leaders underestimate the need for training, communication and buy-in. Securing support from credit analysts, underwriters and managers is an essential part of every successful transformation project.

How culture affects automation success 

Employees need the ‘why’. According to PwC, 44% of workers say they don’t understand why changes are happening, directly undermining buy-in for automation projects. 

Automated decision-making is a game-changer but people need to understand what it means for their role and education is vital. Without cultural readiness, tools can fall out of favour quickly or may be used incorrectly.

Organisations who prepare the right way and exhibit key transformation behaviours report a 73% chance of meeting or exceeding their project goals. In credit-risk functions, this could mean faster time-to-decision, fewer manual overrides and higher analyst satisfaction. 

Despite uncertainty, recent surveys show that 74% of employees are positive about change and ready to adapt to new ways of working. It’s up to finance leaders to bring them along for the journey.

Ramping up readiness, step by step 

Taking the automation leap can feel intimidating but it doesn’t need to be. Choosing systems that integrate with your existing technology is a must but there’s more that you’ll need to consider.

To give your project the best chance of success it’s important to gradually build cultural readiness using the following steps:

• Step 1: Involve stakeholders early and communicate openly. This could mean assigning an automation transformation lead. An employee on the frontline to vouch for new processes and ways of working.

• Step 2: Provide training and not just tools. Hosting workshops with the opportunity for colleagues to ask questions should help to mitigate teething problems. Remember to schedule refresher sessions too.

• Step 3: Celebrate small wins to build momentum. Automation is likely to fast-track your way to reaching business goals. Measure and communicate the difference it makes to keep teams invested long after launch day.

For more tips on launching your automation overhaul, read our blog: Five essentials for your credit risk transformation project

How automation benefits everybody involved 

Automation is a growth driver that brings smarter decisions faster, the ability to respond swiftly during uncertain times and scalable efficiency that ticks all the compliance, governance and auditability boxes.

Here are just some of the ways teams feel the difference for themselves:

For finance heads and directors

Applying data-driven criteria at scale ensures consistency and objectivity. This enhances governance, reduces exposure to risk and enables directors to demonstrate that credit policies are being executed with discipline and precision across the organisation. 

It gives managers control over their systems and workflows and ensures that work is performed in a controlled environment that prevents errors and mistakes. This allows managers to demonstrate to stakeholders that they always meet their obligations in terms of compliance and governance. 

For credit managers

Automation supports credit managers with their daily and repetitive duties, which frees up their time for strategic activities. 

As credit managers’ work becomes more data driven and less prone to human error, they can put their skills to the best possible use. They may even be given opportunities to have their say when defining decision-making processes. 

They can analyse their own decisions and provide feedback on how to improve the decision engine. In other words, they have greater insight into the data and are better integrated into process optimisation.