Effects of RPA in Banking and Financial Industry
The banking and finance industry has seen exponential growth over the last few years. This has resulted in the need to adapt to the most modern technologies in order to be remain etitive on the market.
With the increasing adoption of virtual banking, the main concern is to provide the best user experience while trying to ensure maximum security. In addition, banks also need to maximize efficiency while keeping costs as low as possible.
Robotic Process Automation (RPA) has become a powerful and efficient tool for banks with so much to manage within budget and timeline. Leading global banks around the world have already adopted RPA for automated and more organized banking operations.
Through RPA, we can efficiently and effectively handle most of the tedious back-office work that puts the bank's employees under pressures. By implementing RPA into the banking and financial sectors, banks and organizations can significantly, save a lot of money and can improve performance, speed, and efficiency.
In addition, this could be the perfect way to reduce errors while processing large amounts of data. Not to indicate that it can complete data much faster and reduce processing costs by up to 70%.
Advantages of RPA in Banking
While banks are always looking for cost-cutting measures, RPA implementation can save up to 50% of bank operational costs.
With process automation in the banking industry, total processing is much quicker and more convenient.
Due to growing competition, banks need to be more agile and resilient than ever before. RPA is the best way to achieve stability and flexibility in operations.
Through RPA, banks can merge obsolete data and new data into a single system to make processes simple and efficient. It also helps to deliver faster and more reliable results in order to build organizational strategies.
Use Cases of RPA in Banking
In the BFSI segment, RPA can be applied to multiple processes to minimize human resources and error. For example, chatbots may take the place of customer service executives to answer customer inquiries, complete processes of KYC, credit card or account closure, fraud detection, processing of mortgages, collection, and much more. With Robotic Process Automation in banking, one can easily imagine how much time and money will be saved.
Let us explore the most common use cases for better understanding
Better Customer Experience and Service
Every day, banks receive multiple inquiries. Some inquiries are related to loans or accounts; others include financial fraud, debit cards, or transaction-related issues. The customer service team may find it very difficult to address these queries in a short period of time. However, by introducing RPA, the bots can handle generalized problems, and the customer support team can handle complicated inquiries.
Faster Processing of Credit Cards
Until a few years ago, the authorization of credit cards was a lengthy procedure thattook several days for only validation and approval. Thanks to robotic process automation in finance, it takes just some hours to collect the necessary documents, execute credit and history checks, and make the decision to approve or disapprove the application. The whole process from verification to dispatch has become much faster, referring to a growth in the number of credit card users.
Compliance Reporting
There is a wide range of compliance rules for banks, and banks need to collect a lot of reporting data. By implementing RPA in banking and finance, enforcement of the regulations is made easier. Many challenging processes involved in the gathering of data can be automated to improve banking operations and risk management functionality.
Faster KYC (Know Your Customer) Processes
According to Thomson Reuters, 'numerous banks spend around $384 million each year on KYC compliance'. Due to such massive costs involved with KYC processes, this becomes a great use case of RPA. Through automation n banking and financial services, banks can accumulate customer data, evaluate, and validate more quickly with fewer errors and manpower.
Fraud Detection
With technology on the rise, the number of suspicious transactions is also increasing, and it is almost impossible for banks to monitor all transactions manually to identify fraud detection. To minimize such problems, the role played by RPA in banks and financing is crucial as the AML (anti-money laundering) systems automatically monitor suspicious transactions.
Mortgage Loan
Lending is one of the essential areas of service for any banking institution. The reason that the mortgage lending method is highly process-driven and time-consuming makes it highly relevant for RPA automation. RPA technology can be used for easily handling the process (and exceptions as well!) with defined rules. RPA makes it easy to automate the various tasks that are essential to the mortgage lending process, including the initiation of loans, data management, financial comparisons, and quality assurance. As a result, loans can be approved much faster, leading to increased customer loyalty.
Report Automation
The manual process of reporting is time-consuming, boring, and prone to errors. However, RPA systems involve all the data and can quickly fill in the necessary details in the report without any errors. This will help decision-makers to develop a strategy more quickly to gain an advantage.
Account opening process
With RPA, the lengthiest process of opening an account becomes much simpler, faster, and more accurate. Automation systematically eliminates the data inconsistencies that existed between the core banking system and the new account opening requests, thus optimizing the system's data quality. An excellent example of this at global banks use robots in their account opening process to extract information from input forms and then feed it to different host applications.
Parting Thoughts
The modern solution for smart banking operations is Robotic process automation, which gives banks a significant advantage and an excellent customer experience.
Sirma Business Consulting
Sirma Business Consulting’s automation tool iBORG is a hybrid of robotic test and robotic process automation. IBORG provides a user-friendly interface and makes it easy to automate any task. IBORG can perform wide range of testing operations and can enhance end-to-end testing efficiency. Contact our team for further guidance on the adoption of Robotic process automation and test automation tool IBORG that will help in increasing organization productivity and efficiency.