When Christopher Latham Sholes invented the typewriter in the 19th century, the keyboard had only two rows of characters and limited punctuation. The involvement of an investor and several others, including telegraph operators, influenced the change to a four-row layout and placing keys so that the most often-used keys were not adjacent, which would have resulted in more jamming of the mechanisms. This resulted in the QWERTY keyboard we know today. Yet, one lesser-known reason behind the character placement was to increase typing speed. This was because splitting up commonly used letters meant more alternation between hands, so the same couple of fingers weren’t doing all the typing while the others rested on the keys. Creating efficiency has long been a main goal for inventors and engineers when they design new technology, and emerging technology like automation is no different. When bankers hear “automation,” they often picture complex robotic systems or massive IT investments — something only global institutions can afford. However, automation isn’t just for big banks. In fact, it’s often community financial institutions (CFIs) that stand to gain the most from automating routine, repetitive tasks that consume time and create operational risk.Automation isn’t about replacing people; it’s about amplifying them. When designed thoughtfully, it can free employees to focus on the high-value work that truly strengthens relationships and drives profitability.The Hidden Cost of Manual WorkEvery bank has them: the daily reconciliations, data uploads, compliance checks, and report compilations that quietly absorb hours of staff time. These processes may be familiar, but they’re rarely efficient.According to an Accenture report, 39% of bank employees’ workloads could be made easier or completed through automation. The hidden cost isn’t just time — it’s opportunity. Manual workflows increase error rates, delay decision-making, and slow response to customers.A Harvard Business Review feature on automation notes that employees using automation tools report higher productivity, lower stress, and more time to deepen relationships with customers and other stakeholders.Starting Small, Scaling SmartAutomation doesn’t need to begin with a multimillion-dollar overhaul. The most successful initiatives start small — often in operations, lending, or compliance.Common “first wins” include:
- Automating report generation (e.g., daily balance sheets, wire logs).
- Streamlining document workflows, such as routing approvals for loan exceptions or account onboarding.
- Reconciling transaction data between systems automatically rather than manually exporting spreadsheets.
Industry guidance on automation emphasizes a “crawl, walk, run” approach — starting with low-risk tasks and scaling as confidence grows. For CFIs, this gradual model keeps budgets manageable and demonstrates quick ROI.Overcoming the Human HurdleThe biggest barrier to automation isn’t technical — it’s cultural. Employees often fear that automation will eliminate their roles. However, when framed correctly, it becomes clear that automation enhances rather than replaces human value.EY notes that intelligent automation in banking should be treated as an opportunity to redeploy staff into higher‑value, innovation‑driven work, rather than simply a headcount reduction tactic. Staff trained to oversee or design automated workflows often acquire transferable skills in process improvement and technology collaboration — skills in high demand across the financial sector.Transparency is key. Leaders should communicate early that automation is about reallocating talent, not reducing it. Showing employees how automation eliminates tedious steps — such as duplicate data entry or manual exception tracking — helps build trust and enthusiasm.Aligning Automation with Risk and ComplianceAutomation also strengthens control environments. Manual processes often rely on individual judgment, which can vary day to day. Automated workflows enforce consistency, timestamp activity, and provide clear audit trails — all of which regulators appreciate.Automating routine processes can significantly reduce human error and improve reliability, provided those tools are embedded in a well‑governed risk framework with strong security controls and ongoing oversight.The Community Bank AdvantageWhile large banks automate to cut costs, CFIs can automate to enhance service. Faster onboarding, quicker loan decisions, and more accurate reporting all translate into better customer experiences.Moreover, smaller institutions can be more agile — able to test, refine, and scale automation faster than their larger counterparts. By combining human judgment with digital efficiency, CFIs can deliver the personalized attention their customers expect — with the responsiveness they increasingly demand.Automation isn’t a future goal; it’s an everyday tool. For CFIs, it’s a way to compete smarter, not bigger.
