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RPA in Banking: Top Four Areas to Begin Your Automation Journey

July 1, 2021 - Nitin Todi Principal - Marketing, EdgeVerve


RPA or Robotic Process Automation refers to leveraging bots to mimic user behavior to automate repetitive and rule-based processes. Banks, which use multiple large legacy systems, leverage RPA to automate everyday functions, improving speed, reducing errors, and freeing employees to perform value-added tasks. One of the key reasons for inefficiencies in banking is that processes are performed manually and are time-consuming. From customer onboarding to performing complex document verifications, banks are limited by their staff’s time availability and accuracy.

According to Gartner, around 80% of finance leaders have implemented or are planning to implement RPA.1

Even as banks are tightening their spending, RPA is growing and with good reason. The efficiency, productivity, cost savings, and revenue growth that RPA brings to banks is immense. Let’s look at the four top potential automation use cases and examples in banking.

Top Four Use Cases for RPA in Banking

Transaction management and ledger processing

Ledgers are at the heart of banking systems — recording revenue, assets, liabilities, expenses, and other transactions daily. This can add up to thousands of entries, if not tens of thousands. Yet, today, these processes remain semi-automatic with several mandatory manual interventions, resulting in organizational efficiencies, or worse, persistent inaccuracies. RPA can change that.

Some of the use cases within ledger processes that can deliver significant outcomes for banks are:

Loan processing and disbursement

Traditional loan management function involves a wide range of tasks from processing applications, collecting and verifying documents, and performing creditworthiness checks. These tasks can be automated, including:

With AssistEdge, a large Chinese bank saw a 97% reduction in loan processing time across 5 applications and 27 screens. Hence, automation in loan processing has the power to have a direct impact on a bank’s top-line growth.

KYC verification and compliance

Know Your Customer (KYC) is one of the strictest compliance demands in the financial services industry. A rule-based process, using RPA bots can help improve customer experience, significantly lowering the time to complete manual tasks and reduce costs.

RPA can help expedite KYC and improve accuracy by:

Customer engagement

RPA can automate a vast majority of customer interaction, saving costs and enabling super-fast resolution for customers. Some ways in which banks can achieve this are:

For instance, AssistEdge helped a large Sri Lankan bank automate manual processes, creating a 40% reduction in average call hold time.

In this blog, we have handpicked the top use cases in banking that deliver significant ROI within a short period. However, these are just the beginning. Banks and financial institutions run on legacy systems, involve significant paperwork, process millions of transactions, serve billions of customers, all while being susceptible to severe risks of fraud/malicious activities. RPA can help handle this complexity, at scale, at much lower costs.

Read more on how RPA can improve efficiencies, save costs and optimize resources in the banking industry.

Nitin Todi

Principal - Marketing, EdgeVerve

More blogs from Nitin Todi >

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