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The Banking and Financial industry is seen to be growing exponentially over the past few years with the implementation of technological advancements resulting in faster, more secure, and reliable services. To remain competitive in an increasingly saturated market – especially with the more widespread adoption of virtual banking – banking firms have had to find a way to deliver the best possible user experience to their customers. As per Gartner, the pandemic has catalyzed the business initiatives to adapt to the demands of employees and customers and make digital options the future of banking services.

Internally, the challenge to maximize efficiency and keep costs as low as possible while also maintaining maximum security levels has also increased. To answer these demands, Robotic Process Automation (RPA) has become a powerful and effective tool.

RPA has been significantly adopted in this sector, for making time-consuming banking operations more organized and automated. According to reports, RPA in the banking sector is expected to reach $1.12 billion by 2025.

Robotic process automation has also dramatically streamlined a wide variety of back-office processes that once bogged down bank workers. By shifting much of these tedious, manual tasks from human to machine, banks have been able to significantly reduce the need for human involvement, which has had a direct impact on everything from performance and efficiency levels to staffing issues and expenses.

Recently, the largest banks in Japan made news for implementing robotic process automation to save labor costs and gain operational efficiency. Major banks like Axis Bank and Deutsche Bank have also made news for implementing RPA to automate business processes.

Bank employees deal with voluminous data from customers and manual processes are prone to have errors. Banks around the world are considering RPA to minimize the manual processing of this huge data to avoid errors. Processing data manually is also a time-consuming task. Simple validation of customer information from 2 systems can take seconds instead of minutes with bots. Introducing bots for such manual processes can reduce processing costs by 30% to 70%. Several processes in the banks can be automated to free up the manpower to work on more critical tasks.

RPA has a plethora of different applications in the BFSI segment to free up the manpower to work on more critical tasks. Some of these processes include:

  • Customer Service
  • Compliance
  • Accounts Payable
  • Credit Card Processing
  • Mortgage Processing
  • Fraud detection
  • KYC
  • General Ledger
  • Report Automation
  • Account Closure Process
  • Account Origination & Receivable
  • Surrender
  • Collection
  • Underwriter Support
  • Deposits & many more…

  • Customer Service
    Banks deal with multiple queries every day ranging from account information to application status to balance information. It becomes difficult for banks to respond to queries with a low turnaround time.
    RPA can automate such rule-based processes to respond to queries in real-time and reduce turnaround time to seconds, freeing up human resources for more critical tasks
    With the help of artificial intelligence, RPA can also resolve queries that need decision-making. By using NLP, Chatbot Automation enables bots to understand the natural language of chatting with customers and respond like humans.
    [Also Read: Automation Takes Over the Risks of Underwriters to Create a Stout Loan Management System]
  • Compliance
    Banking being the center of the economy is closely governed and needs to adhere to many compliances. According to an Accenture survey in 2016, 73% of respondents believed that RPA can be a key enabler in compliance. RPA increases productivity with 24/7 availability and the highest accuracy improving the quality of the compliance process.
  • Accounts Payable
    Accounts payable is a simple but monotonous process in the banking system. It requires extracting vendor information, validating it, and then processing the payment. This does not require any intelligence making it the perfect case for RPA.
    Robotic Process Automation with the help of optical character recognition (OCR) solutions can solve this problem. OCR can read the vendor information from the digital copy physical form and provide information to the RPA system. RPA will validate the information with the information in the system and process the payment. If any error occurs, RPA can notify the executive for resolution.
  • Credit Card Processing
    Traditional credit card application processing used to take weeks to validate the customer information and approve credit cards. The long waiting period was dissatisfaction to customers and cost to banks. However, with the help of RPA, banks now can process the application within hours. RPA can talk to multiple systems simultaneously to validate the information like required documents, background checks, credit checks and take the decision based on rules to approve or disapprove the application.
  • Mortgage Loan
    In the United States, it takes approx. 50 to 53 days to process a mortgage loan. Process of approving a mortgage loan goes through various checks like credit checks, repayment history, employment verification, and inspection. A minor error can slow down the process. As the process is based on a specific set of rules and checks, RPA can accelerate the process and clear the bottleneck to reduce the processing time to minutes from days.
  • Fraud Detection
    With the introduction of digital systems, one of the major concerns of banks is fraud. It is really difficult for banks to track all the transactions to flag the possible fraud transaction. Whereas RPA can track the transactions and raise the flag for possible fraud transaction patterns in real-time reducing the delay in response. In certain cases, RPA can prevent fraud by blocking accounts and stopping transactions.
  • KYC Process
    Know Your Customer (KYC) is a mandatory process for banks for every customer. This process includes 500 to 1000+ FTEs to perform necessary checks on the customers. According to Thomson Reuters, banks spend more than $384 million per year on KYC process compliance.
    Considering the cost of the manual process, banks have started using RPA to validate customer data. With increased accuracy, banks no longer have to worry about the FTEs and the process can be completed with minimal errors and staff.
  • General Ledger
    The banks must keep the general ledger updated with information like financial statements, revenue, assets, liabilities, expenses, and revenue which is used to prepare financial statements. Financial statements are the public documents that are then accessed by the public, stakeholders, and media. Considering the amount of detailed information in the statement, errors in the report can very badly affect the bank’s image.
    To create the statement, the bank needs to update information from the multiple legacy systems as these systems cannot integrate, verify it and make sure that the general ledger is prepared with no errors. With this amount of data from multiple systems, it is bound to have errors. Here comes RPA to the rescue. RPA is independent of the technology and can integrate data from multiple legacy systems to present in the required format even if the data in the systems are not in the same format. This reduces the huge amount of data handling and time.
  • Report Automation
    Like all other public companies, banks need to prepare reports and present them to their stakeholders to show their performance. Considering the importance of the report, there is no chance for the bank to make an error.
    While RPA systems provide data in multiple formats, they can create reports by auto-filling the available report format to create reports without errors and minimum time
  • Account Closure Process
    With such a huge number of customers, it is supposed to get some account closure requests monthly. There can be various reasons for the account closures and one of them is when a client has failed to provide the mandatory documents.
    With Robotic Process Automation, it is easy to track such accounts, send automated notifications, and schedule calls for the required document submissions. RPA can also help banks to close accounts in exceptional scenarios like customers failing to provide KYC documents.

Banks can do more with less human resources and rip the financial benefits with RPA. A survey in the financial section by PricewaterhouseCoopers shows that 30% of the respondents were not only experimenting with RPA but were on the way to adopting it enterprise-wide.

With many success stories and client testimonials, AutomationEdge has been helping banking and financial services to modernize their service desk with intelligent automation and ensure consistency and flawless execution of compliance norms. If you are looking for an automation partner and want to elevate the banking operations with intelligent automation, AutomationEdge is happy to serve you. Request a demo here or visit www.automationedge.com to know more about call center transformation with AutomationEdge’s RPA.