Embarking on banking transformation? Consider automated controls

In 2025, the mantra for banking and capital markets is "Be bold." With anticipated U.S. interest rate cuts and streamlined regulations, many banks are positioning themselves to explore growth opportunities.

The imperative of technology modernization

To thrive in this evolving landscape, banks should prioritize technology modernization. Staying ahead of shifting regulations and market dynamics requires speed and agility—essential elements for growth. Outdated legacy platforms often hinder transformation, making it imperative to adopt systems that support scalable and flexible operations.

However, with increased velocity comes the need for stronger safeguards. Many banks face challenges in maintaining financial stability, compliance and security, all while pursuing higher ROI. Medium enterprise (ME) banks typically encounter unique pressures—from resource constraints to the pace of regulatory change—making holistic risk mitigation strategies important.

Stay ahead with automated controls

To help manage these demands, many banks are strengthening their operational resilience by assessing that business transactions and customer data are precise and secure. Automated controls offer a technology-enabled solution, continuously monitoring and managing operations to support precision, efficiency and compliance.

Manual processes can result in inefficiencies, errors and vulnerabilities to fraud or non-compliance. Automated controls help reduce these risks by streamlining operations and reinforcing compliance, enabling banks to focus on strategic growth.

The hidden costs of manual controls

Manual controls can carry hidden financial burdens. These include time-consuming processes and secondary checks by internal and external stakeholders. Human errors can also introduce costs in the form of corrections and delays.

In one PwC engagement, a client analysis uncovered over 81,000 hours spent annually on control-related tasks. Beyond direct costs, manual processes limit innovation and delay strategic initiatives. Automation allows teams to redirect focus toward high-value activities and data-driven decision-making.

Integrating smart controls for seamless compliance

Automated controls help align with regulations from agencies like the Office of the Comptroller of the Currency (OCC) and the Federal Financial Institutions Examination Council (FFIEC). These directives focus on safety, soundness and operational oversight.

Automated systems enable organizations to more efficiently incorporate and respond to regulatory updates—improving compliance while building a scalable governance model. With this foundation, banks can reduce error rates, avoid corrective action and reallocate resources toward innovation.

Steps to enhance automated controls

• Assess your current control environment: Identify opportunities to enhance or automate existing controls.
• Integrate compliance requirements: Embed regulatory requirements into the control framework.
• Leverage technology: Utilize advanced technologies like AI to support continuous compliance, security and operational efficiency.

The Workday advantage

Workday offers powerful capabilities to automate controls and enhance operational resilience. Features include:

• Business process workflows: Pre-transaction assessments through configured approval chains help prevent downstream errors.
• Routing rules and approval tools: Enforce policy-aligned approval hierarchies and segregation of duties.
• AI-enabled detection: Spot patterns and potential risks before they can impact financial reporting.
• Ecosystem extensibility: Expand internal control functionality via native platform innovations.

Innovation in action

As a Built on Workday collaborator, PwC is developing custom control applications that can go beyond core features. Drawing on real-world client insights, we co-develop solutions that help clients proactively detect anomalies and maintain control integrity.

Examples of Workday automation in banking

• Automated reconciliations: Match transactions to general ledger entries for improved precision.
• Regulatory compliance monitoring: Track and document activities to help meet SOX and other regulatory requirements.
• Expense management automation: Enforce policy-driven expense approvals to help prevent unauthorized spending.

These approaches support compliance, improve operational efficiency and enhance the overall control environment.

Embrace the power of automation

Automated controls can do more than streamline compliance—they support a foundation for strategic growth. By proactively responding to regulatory changes and improving operational integrity, banks can stay ahead of evolving challenges and seize emerging opportunities.

Ready to build a smarter control environment? Let’s talk.