Robotic Process Automation In Banking
RPA in the banking sector means the use of specialized software and tools to perform recurring, rule-based, and high-volume tasks. For instance, accounts payable, audits, and other similar tasks are easily carried out with the help of automation incorporated in the companies.
“Researchers at Hadoop estimate that the potential savings that companies will experience with RPA by 2025 are between $5 trillion to $7 trillion. Statista believes that the RPA industry will be worth $3.1 billion by 2019 and $4.9 billion by 2020.
What is robotic process automation?
Robotic process automation is a type of software that is designed solely for the automation of time-consuming and monotonous functions and does not correlate with human intelligence. RPA in the fintech and banking sector operates through a determined workflow that provides robots with specific explanations on what needs to be done at each step. Once robotic process automation software has received a roadmap, it can independently run the necessary programs and perform tasks as specified by the requirements.
Where RPA can be used in the Banking and Financial Services Industry?
- Integration with Legacy Systems
RPA can be easily integrated with legacy systems using UI automation.
- Fetching Data from Multiple Systems
It can collect data from multiple systems for quicker decision making by providing an intelligent report.
- Fraud Detection
RPA bots can use for the detection of patterns to stop transactional fraud.
- Faster & Custom Reporting
RPA bots may produce reports within minutes of the annual meeting and audit required.
- Automate Customer Query Solution
With AI, RPA can understand the natural language of emails and chats to provide resolution to customer queries.
Why is Robotic Process Automation the best solution for the Banking and Financial Services Industry?
Automatic Report Generation:
A regular requirement of a bank is to generate compliance reports of fraudulent activities in the form of a suspicious activity report or SAR, which must be verified by compliance officers and read manually and fill in the details in the SAR, which is an extremely tough process and takes a long time. RPA with a natural language generation capability, the whole process will be done quickly in record time, where it can be read through the process and extract the necessary information for SAR filling, which leads to a reduction in operating costs and also saves time.
A majority of customer onboarding problems can be eradicated or managed better if banks focus on automation and reduce manual labor. RPA mimics the actions your employees take while executing repetitive compliance activities in various applications, eliminating time-consuming, error-prone manual data entry. By ensuring timely completion of the processing bank can realize the availability of accurate data.
The whole process can easily be automated by using RPA tools to extract data from KYC using OCR, which can then be matched to the data provided by the customer. If there is no discrepancy, the data can be entered automatically in the customer management portal.
By implementing RPA, the process of opening an account has become much simpler, faster, and more accurate. Automation directly eliminates errors that may exist between the core banking system and the new account opening request, thus enhancing the quality of the system’s data.
Robotic Process Automation (RPA) applications that execute routine, rules-based tasks without human intervention can significantly improve the mortgage loan experience. While banks have made substantial progress in automating basic business processes, workflow, and functions related to mortgages, RPA can enhance efficiency by supplementing existing workflows. It allows for the automation of various tasks that are crucial in the mortgage lending process including loan initiation, document processing, quality control, etc. This helps in faster completion of the process leading to enhanced customer satisfaction.
Loan Processing has always been considered a very tedious process, even though banks have automated it to some extent, but further automation will bring down the processing to a record 10-15 minute process. This will lead to increased customer satisfaction and reduced workload on employees.
There is a large volume of common customer queries making it difficult for the staff to respond to them with low turnaround time. The customer needs to select and input the data as required. And, RPA can monitor most of the concerns. But, it will give faster resolutions with higher accuracy. Besides that, it can also generate reports for detailed analysis that the company can use to prevent further problems.
Credit Card Processing:
Credit card processing is one of the most cumbersome and tedious processes due to its extensive validation checks. But by implementing RPA, we can make a quick decision to either approve or disapprove the application with a rule-based approach.
Account Closure Process:
There is an enormous amount of account closing requests monthly which the bank has to deal with primarily due to the non-compliance on the part of the customers. RPA can help in solving this by easily tracking all such customers and sending them automatically generated notification and reminder for submission of required documents
RPA has already gathered a huge customer base for all the businesses that are looking for reduced cost and increased efficiency. It seeks to develop human resources in a way that minimizes the efforts made while maximizing the benefits that are reaped. RPA is a technology that has the potential to transform the financial services sector.