The banking and financial sector has grown exponentially in recent years with the implementation of technological advancements that have resulted in faster, safer and more reliable services. In order to remain competitive in an increasingly saturated market, especially with the more widespread adoption of virtual banking systems: banking companies have to find a way to provide their consumers with the most optimal user experience.
Robotic Process Automation (RPA) has evolved into a powerful and efficient solution for meeting these demands. To make long-term financial transactions more organised and automated, RPA has been widely utilised in this business. Robotic process automation has also streamlined a wide range of back office tasks that formerly slowed bank staff. Banks were able to drastically minimise the need for human engagement by transferring many of these boring manual operations from humans to machines, which had a direct impact on everything from levels of performance and efficiency to staff difficulties and expenses.
In addition, large financial institutions such as Axis Bank and Deutsche Bank have made news by deploying RPA to automate business procedures. Customers’ information handled by bank clerks, and manual processes are prone to errors because of the volume of information handled. Globally, banks are looking to RPA to reduce the amount of manual data processing and to eliminate errors in this massive volume of data input.
Process Automation Usecases In Banking
- Customer Service
- Compliance Management
- Payments
- Digital Account Opening
- KYC (Know Your Customer) Process
- Automated report generation
- Customer offboarding
Customer Service
Every day, banks deal with a wide range of concerns, from account information and claim status to balance information, and they do that on a daily basis. Answering queries in a timely manner is getting increasingly difficult for banks. For Ex: RPA can automate rule based procedures to answer inquiries in real time, allowing human resources for more vital duties to be released. Robotic Process Automation (RPA) can also tackle challenges that need decision-making with the use of artificial intelligence.
Compliance Management
The banking sector, which is at the heart of the economy, is heavily regulated and must adhere to a number of compliance laws. Seventy-three percent of respondents to Accenture’s 2016 survey felt that RPA will be a key driver for compliance management. Due to its 24/7 availability and optimum accuracy, RPA boosts productivity by enhancing the quality of the compliance process.
Payments
Payables is the most basic yet boring process that happen in financial system. In this process information about suppliers must be extracted, verified, and then payments is processed. In this scenario, RPA is the right solution because no intelligence is required. An OCR-based robotic process automation solution can tackle this challenge. Using OCR technology, the RPA system may extract information about the vendor from the digital copy’s physical form. To process payments, an RPA will validate information against the system’s data. For instance, if an issue happens, RPA can alert the executive to fix it.
Digital Account Opening
When applying for a traditional credit card, it could take weeks to verify the customer’s information and approve the card. But now banks can process requests within hours with the help of RPA. In order to authenticate information such as required paperwork, background checks, and credit checks, the RPA can communicate with several systems at the same time using APIs to quickly process the verification.
KYC (Know Your Customer) Process
Each and every bank customer must go through Know Your Customer (KYC). Every client’s information is checked across various data sources which delays the process. Banks have now begun employing RPA to validate client data due to the high expense of the traditional method.
Automated Report Generation
Banks, like all other public organisations, must generate reports and deliver them to its stakeholders in order to demonstrate their effectiveness. Due to the importance of this report, there is no chance that any mistakes will be made by the bank’s personnel. Despite the fact that RPA systems give data in many formats, they can construct reports by automatically populating the available report format to create reports without errors and with a minimum of time.
Customer Offboarding
Clients should be requesting to terminate their accounts on a monthly basis. Several factors can lead to the account being closed, and one of them is if the consumer hasn’t given the necessary documentation. These accounts can easily be tracked with Robotic Process Automation, and automated notifications may be sent to the appropriate parties. Suppose if a consumer fails to produce KYC paperwork, RPA can assist banks terminate the account and prevent it from being opened in the future.
Benefits of RPA in Banking Industry
Saving on costs
It has been argued by several that RPA does not lower costs, but rather adds value to an organization’s benefits and efficiency. As a result, different implementations produce slightly varied results. In such a competitive market, banks are still looking for ways to decrease expenses. RPA has been a great help.
Intensifying operational effectiveness
When it comes to influencing the economy, banks are important. Increasing the efficiency of all banks will have a direct and indirect impact on many other sectors. As a complete solution, RPA necessitates extensive personnel training, governance, and thorough configuration.
Building adaptable business
Globalization and technological advancements have forced banks to become more flexible than ever before. Things that happen halfway around the world can have an impact in a matter of hours rather than days. Through robotic process automation (RPA), financial institutions have the flexibility to prepare for any situation and respond quickly.
Data utilization for growth
Data from paper publications can now be digitised and made available to businesses thanks to technology. Banks employ RPA to bridge the gap between processes by utilising existing and new data sources. With all of your data in one place, you can develop faster and more accurate reports for your organisation.
Saving on time
Increasingly, banks are implementing robotic process automation to speed up the execution of processes and improve efficiency. According to research, banks will be able to save up to 75% on expenditures while retaining the quality of their output. HDFC and ICICI use RPA to shorten process execution times by 60 percent, respectively.
Making most out of your resources
No new infrastructure is required to implement robotic process automation. As a result of RPA’s unique ability to integrate into any system, independent of the development technology, it may be used across the company.
Automation through No Code
To automate the procedure, most RPA technologies such as Quickboarding use drag and drop technology. Using no code technique, you may automate a workflow without writing any code or with very little code. Because of this, it’s easy to set up and keep up.
Conclusion
As a result of RPA, banks can do more with fewer employees and reap the financial rewards. According to research 30 percent of respondents had not only used RPA, but were well on their way to implementing it at the company level as well. Because of its many advantages, banks must view RPA as a technology that will bring about positive change in the industry. Lower expenses and increased efficiency via RPA can lead to significant corporate development. However, if you consider the value that RPA delivers to your organisation, you can expect a good return on your investment in the months after you invest in RPA services and software solutions. Smart banking is the way to go!!
