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Since the inception of technological advancement, the banking and finance industry has been growing rapidly and providing faster, reliable, and efficient service to their customers.

But to remain in the competition and for significant growth in the ever-emerging market, banking firms have to find better-driven solutions.

This article will explain how the banking and finance industry can leverage the benefits of RPA in their business. Besides, this article is extracted from the webinar which was presented by Manohar, Uday Birajdar, Shiv Kumar Nagrajan, Santosh Kute, and Anurag Desai in partnership with AutomationEdge, Race Online and HDFC bank. In this webinar, presenters shared their experience of RPA in the banking industry and the use cases that they implemented in their organization. Moreover, they also shared how to quantify success with the right measurement and the right strategy.

The banking industry generally has several tasks such as data entry, customer service activities, account maintenance, trial balancing, and much more.

Using RPA to automate these tasks can give a better advantage to employees dedicating more time to the core functions that would generate revenue and optimize the cost.

Due to this advancement, RPA has been significantly adopted by many banking firms to automate their IT operation and workflows.

In one of the case studies, a large banking firm processes approximately 5 million loan applications every year. AutomationEdge bots help to reduce processing time in credit management which enhances customer experience and efficiency.

Mashreq bank which is a well-known bank in the middle east, uses AutomationEdge bots to automate 50% of their IT tickets. 10000+ IT tickets are resolved per month using AutomationEdge

Major banks like HDFC Bank reduces the processing time of the loan per application from 40 minutes to 20 minutes. They process around 5 million loan applications per year. They have used the BOTs in retail assets, retail banking, corporate banking, and IT operations. Yes bank automates Month-end salary transfers. The bots are doing End to end automation with OCR for processing the salary of the employee.

Moreover, these banking firms have not only used RPA as automation but they have embedded their services with hyper-automation that is embedded with machine learning and artificial intelligence, and big data.

In this way, it helps the banking and finance industry at each step of the workflow by providing relevant solutions as per the task and workflow.

There are several processes in the banking industry that can be automated to free up humans from manual work. Let’s find out what are they and how they can be automated.

RPA & IT Process Automation in Banking Industry

RPA has a range of applications in the banking and financial service segment that can automate tedious and complex tasks into simpler ones.
Above all these applications keep track of essential and non-essential functions which might be missed by humans

Some of the RPA automation processes are Customer on-bording, off-bording, salary processing, credit application processing –loan application, customer facing enterprise chatbot, MIS reporting and analytics, Mainframe system automation, batch job automation, Reconsilation, CRM process automation, payment operation, loan closure, social media automation, ATM Transaction and chargeback operations, fraud detection, AML automation, card operations, KYC document processing and indexing

  • Credit Card Processing
    Over the last few years, more and more people have started using credit cards rather than cash and debit cards. With the increasing demand for credit card services, banks are receiving a lot of applications. It takes weeks to investigate the customer data and approving the credit card. This long wait ruins the customer experience. But RPA can use certain predetermined rules and regulations to validate the customer data and approve or disapprove the applications.
    [ Also Read: Automate Credit Card Processing to Enhance Customer Experience]
  • KYC Process
    Know your customer or KYC process is an essential and mandatory process for bank customers when they open a new account. This whole process includes more than 1000+ FTE to perform the necessary check. But RPA can be a great help in streamlining the KYC process. By using RPA banks can easily validate customer information by comparing the previous financial data in a short time with minimal error and human intervention.
  • Account Closure
    Account closure is another lengthy process that creates a struggle for bank employees. With a great amount of customer data, closing the account every month requires a set of information, and accessing them manually is a tedious and error-prone task. With RPA, banks can easily send automated notifications and calls for required documents and close the account in the absence of required documents.
  • CRM Process Automation
    When it comes to the banking industry, customer relationship management holds the top priority. In a single day, a bank receives multiple money-related and document-related queries that need immediate human intervention. By automating the customer service with RPA, banks can use Artificial intelligence chatbots and virtual agents embedded with NLP to identify repeated customer queries and respond to them in real-time with accuracy and a low error rate.
  • Fraud Detection
    With the advent of technology, cases of bank fraud are increasing at a faster pace and keeping track of all the transactions and bank details is error-prone with humans whereas RPA can easily track the fraud in transactions and triggers the alarm in real-time and reduces the time taken for necessary action.
    [ Also Read: Robotic Process Automation (RPA) in Banking Industry [Updated 2021]]

The banking and finance industry can do more with less human intervention and scale the banking business with Robotic process automation.

Benefits of RPA and IT Process Automation In Banking

RPA might look like a complex process but it offers several benefits to the banking and finance industry. Here are some of its benefits-

  • Enhance Operation Efficiency
    The banking industry has a vital role in influencing the economy and business of a country. By employing RPA in each step of the banking workflow, operational efficiency can be enhanced and make the whole process faster and efficient. Recently, HDFC bank has 200 RPA bots performing loan processing and making the banking operation simplified.
  • Cost Saving
    RPA helps in automating the tasks that are repetitive and error-prone for humans. By taking the actual place of humans, RPA can reduce the cost spent on handling multiple tasks. Many researchers have stated that it reduces approximately 25-30% of the cost and easily gets in sync with the existing infrastructure.
  • Reduce Operational Risk
    With so many tasks in hand, bank employees often struggle with managing the error-prone workflow butut with RPA, chatbots and virtual agents with natural language capabilities can perform human activities and eliminate the chance of manual error and enhance the customer experience.
  • Expedite Business Growth
    With the implementation of RPA in the banking industry, banks can save up to 75% of the cost without compromising the output quality. In this way, it enables you to provide a superior experience to your customer that enhances your business prospects. It also allows you to plan and report disasters and better business strategies.

With innumerable advantages and use case scenarios, RPA in the banking industry is going to survive for the longest. Banks that implement RPA can drive more effective internal processes and easily boost revenue generation in no time with a little effort.

Watch our complete webinar on Leveraging Robotic Process Automation (RPA) & IT Process Automation in Banking Industry here.