Banking involves a lot of manual activities which are repetitive and time consuming. The Banking systems have evolved from managing ledger management manually to Core Banking Systems (CBS). With the evolution of Indian economy and hordes of banking products and services available, there has been an exponential growth in the banking business.

It is no surprise that the banking industry trends tend to change but the lending trends rather stay consistent. When it comes to giving a loan, the request for a loan application goes through an entire complex process of approvals. A lot of steps in this process are rule based and some need to follow a specific trend and many of them are manual interventions.

In the recent past there have been a lot of examples where the borrower has not been able to repay, however there has been no responsibility taken by the sanctioning committee for the default. Analysis of the cash flows of the organization, future plans, repayment plans have to be put in place before the loan can been approved. In this process, credit ratings play a major role. Individuals with credit ratings above a certain value are considered as ‘low-risk’, who can pay their debts on time. While this is just one of the examples, there are various other rules that have to be applied before a loan is sanctioned.

Of late, you would have seen a tremendous increase in bankruptcies being declared by premium businesses. The bank’s limitation in recovering the money in case of liquidation of businesses. As per the latest examples given by the SMEs across banking industry, there is enough and more existing data that can throw some light on the trends in non-performing assets.

Getting to know the pattern of the financial ratio’s calculated from the cash flows varies from sector to sector but there is no trend that is followed by the banks currently.
There are lot of applications that need manual intervention for the amount to be approved but there has been no trend to the applications being approved, usually the application is approved based on a lot of other factors which go unaccounted. To stop this there has to be a trend analysis study of all applications and they have to run through the rigorous checks for the approval.

The biggest bottleneck in banking industry is the repetitive nature of activities being performed which have rules but end up taking lot of time because it still runs on lot of old school methods. Identifying the trends/processes and rules will not only save time but help in reducing the turn-around time and decrease losses.

Banks need to look at automation projects as an investment. This in-turn helps in quick results with less resources in the loan processing department. Considering the extensive change in the psychology of our economy we would need to get the approval processes automated with least intervention in the manual decisions so that the approvals are quick. This will also help in optimizing manpower efficiency. Getting a competitive edge over our competitors and quick processing can become one of the USP’s of the bank upon adopting automation.

This is the hour where banks need to transform digitally for achieving a competitive edge over other banks and gaining an exponential increase in revenue. With AssistEdge, a leading RPA product integrated with Artificial intelligence, EdgeVerve is best suited to meet these requirements of digital transformation. With its parent company as Infosys Ltd. the technology stack available is undebatable. So are you ready to start?

Retail banks have been the pioneers in adopting Robotic Process Automation (RPA) for their business operations. As per a survey report by Everest, the adoption rate of RPA by retail banks has increased from 20% in 2012 to 50% in 2017¹. With such a fast moving platform being adopted across industry, no bank can afford to delay responding to the call for scale, which will significantly enhance the digital experience for their customers.

70% of banks are expected to invest in technology to strengthen their competitive positioning and build market share over the coming three years². To increase their own customer base and have an advantage over others, banks are focusing on becoming a world-class digital player. No bank would want to lose a customer to another that offers faster processing and convenience.

There are many aspects that are changing in the digital banking world. Banks will not just compete with other banks but also other digital payment mediums or micro banks, such as Paytm, Googlepay, Mobikwik, Paypal etc. These mobile enabled platforms have made finance management as easy as swiping your phone screen to answer a call. The new entrants in the Fintech space who are now threatening the traditional banking business are Apple & Samsung with the launch of their mobile credit technology, which use biometrics, thus making them highly secure.

Automating this from the RPA perspective cannot happen today without involving the mobile devices in the RPA process. And mobile devices cannot yield results without a knowledge management system with artificial intelligence. Can you imagine a human workforce without their dependency on mobile devices? Wouldn’t it be a disconnected world if you are not able to leverage the most powerful source of information which we carry every day?

It matters to the bank as the mobile device is the digital face of the bank interacting with the customer. The customer behavior is well understood by the bank application which resides on the customer mobile device. At the same time, automating it would mean dealing with those many exceptions and a customer doesn’t forgive bad experiences at all.

To manage this change in the banking organization, the below technical process will be needed:

In doing so, the bank will face the following challenges:

With a market leading and innovative RPA product like AssistEdge, EdgeVerve will be able to fit amongst the existing RPA infrastructure. Since the technology infrastructure is managed by the same parent company – Infosys, there will be no outages or disruption in the existing way of RPA and customer experience. One such example is the industry leading Finacle banking suite which not just powers banks but runs critical banking infrastructure for many nations.
On the other side, AssistEdge is leading the Intelligent Automation market with its capabilities of Knowledge, AI, Vision, Machine Learning, Natural Language and Speech capabilities. These capabilities have smoothly integrated with the enterprise existing infrastructure in the past and AssistEdge has successfully enabled top 50 banks across the globe to scale up to the call of workforce automation and excellence.
As a bank, you will have to act on choosing the right product and service now, to be a market leader through digital banking and RPA. Start today in creating an enriching digital banking experience for your valuable customers.

References:

1 – https://www2.everestgrp.com/Files/previews/Everest%20Group%20-%20Banking%20BPO%20Annual%20Report%202018%20-%20Complimentary%20Abstract.pdf

2 – https://www.ey.com/Publication/vwLUAssets/ey-global-banking-outlook-2018/$File/ey-global-banking-outlook-2018.pdf