Digital Lean Operations: Smart Automation and Artificial Intelligence in Financial Services

Babich V, Birge J, Hilary G (eds) Innovative Technology at the interface of Finance and Operations. Springer Series in Supply Chain Management, Springer Nature, Forthcoming.

14 Pages Posted: 8 Jan 2021 Last revised: 16 Jan 2021

See all articles by Robert N. Boute

Robert N. Boute

KU Leuven - Faculty of Business and Economics (FEB); Vlerick Business School - Operations & Technology Management Center

Joren Gijsbrechts

ESADE Business School

Jan A. Van Mieghem

Northwestern University - Kellogg School of Management

Date Written: January 15, 2021

Abstract

The financial services industry covers banks, insurance companies and investment managers, as well as transaction or message processing companies. To streamline billions of daily transactions, lean principles and operational excellence programs have found theirway to financial service firms. Today, the resulting cost and risk reductions are further enhanced by embracing newdigital technologies—such as those falling under the umbrella of Industry 4.0. These digital technologies stimulate a new wave of operational efficiency improvements by making processes more automated, autonomous, and smart. Inspired by Boute and Van Mieghem (2021), we provide a framework to evaluate the transition towards digital, autonomous and smart operations in financial services. We report our findings from the digital operations journey of Euroclear, a service provider of settlements for securities transactions, on their quest for increased automation and autonomy. We also shed light on the potential of artificial intelligence in financial services. Data-driven solutions may support financial service firms from purely descriptive models and methods with strong predictive power, towards prescriptive decision-making algorithms.

Keywords: Digital, Lean, Industry 4.0, autonomous, automation, financial, artificial intelligence

Suggested Citation

Boute, Robert N. and Gijsbrechts, Joren and Van Mieghem, Jan Albert, Digital Lean Operations: Smart Automation and Artificial Intelligence in Financial Services (January 15, 2021). Babich V, Birge J, Hilary G (eds) Innovative Technology at the interface of Finance and Operations. Springer Series in Supply Chain Management, Springer Nature, Forthcoming. , Available at SSRN: https://ssrn.com/abstract=3747173 or http://dx.doi.org/10.2139/ssrn.3747173

Robert N. Boute

KU Leuven - Faculty of Business and Economics (FEB) ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

Vlerick Business School - Operations & Technology Management Center ( email )

Belgium

Joren Gijsbrechts

ESADE Business School ( email )

Av. de Pedralbes, 60-62
Barcelona, 08034
Spain

Jan Albert Van Mieghem (Contact Author)

Northwestern University - Kellogg School of Management ( email )

2001 Sheridan Road
Evanston, IL 60208
United States

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