With the technologies advancing exponentially, automated solutions have forayed into all the major industries, including the banking domain. As a result, the demand for Robotic Process Automation (RPA) in banking has recently increased considerably, with the companies bound to implement the solution to gain an edge over the competition.
As the application of RPA in banking is receiving a lot of attention of late, it has taken a giant leap forward to alter the functional dynamics of the banking sector. The induction of RPA into the financial landscape can be attributed to RPA’s capabilities to lessen the cycle time and boost accuracy and productivity with better regulatory compliance.
However, before heading too far ahead, let us first delve into the fundamentals of RPA, its benefits, and other subtleties.
Robotic Process Automation is a solution that helps enterprises automate manual business procedures efficiently so that employees can invest more time in value addition tasks rather than tedious ones. For example, RPA applications in banking allow banks to stay competitive and flourish in the financial landscape by permitting customers to automatically process payments, deposits, withdrawals, and other banking transactions without manual intervention.
Major benefits of RPA:
Well-planned strategy: Suitable planning to implement RPA in banking business processes is one of the major deciding factors of growth as well-planned and followed strategies can help the industry focus on pre-RPA execution concerns.
Identifying processes that require automation: Identifying processes that can be automated is one of the essential steps for successful RPA execution. Hence, this becomes the perfect time for Process Discovery to pitch in, which is leveraged to define, map, and analyze a company’s business processes.
Build rational ROI prospects: The most challenging element of RPA implementation is identifying ROI and the time invested for its realization.
Training employees: Once the planning is done, the company must program the staff to easily withstand various challenges associated with automated solutions. Hence, tutoring and mentoring them with automation services will enable the bank and the staff to attain correctly assessed results.
Joining forces with relevant teams: As soon as the classification process is done, businesses must develop the required teams comprising individuals from the IT and business departments of the company to work in unison.
Regulatory Compliance: RPA implementation in banking helps them abide by their legal and financial regulations easily as RPA tools could substantially augment the use of the required compliance resources.
Accounts Payable confirmation: With accounts payable being a time-consuming process, it directs the employees to automate vendors’ invoices and then validate the data before dispensing it. Following it, IA can systematize these tedious processes by mechanically reading the invoices and crediting the payments after rectifying the errors and confirming data.
Customer Experience: Banks improve their customer experience via RPA in retail banking with the consumers reaching out to the staff to receive the solutions to many common problems. The tools can quickly examine the customers’ doubts and offer solutions to their inquiries.
Mortgage loan processing: For mortgage loans, banks must go through several steps, such as credit checks, employment verification, and inspection, before approving the loan. This process is easily overseen through RPA automation.
Fraud detection: It has become difficult for banks to check every transaction manually. As a result, the fraud cases are increasing with each passing day. However, RPA software can use algorithms to identify fraudulent transactions, identify them, and send them to the relevant subdivisions.
Know Your Customer (KYC) process: Banking institutions are also liable for amassing Know Your Customer (KYC). Hence, banks utilize hundreds of FTEs to corroborate the correctness of customer information.
Report automation: It is one of the primary use cases of RPA that helps the banks to prepare financial reports with accurate information.
Account Closure Process: Banks can send automated reminders through the RPA application if the consumers have not furnished the required proof for the account closure process.
With the COVID-19 pandemic affecting most financial institutions’ businesses adversely, it is now more imperative for the banking industry to implement RPA as urgently as possible. It will not only expedite the processes and generate higher revenues but also make up for the lost time and business during the pandemic.
The banking industry will skyrocket with the consumers now vying for infallible, secure, and faster solutions provided the right set of RPA applications such as AssistEdge is executed. Hence, this strategy is bound to empower the banking institutions to reshape the banking ecosystem’s growth trajectory.