Everything you need to know about Robotic process automation in banking industry
Today, banks and other financial institutions must continuously evolve to provide their users with the best customer experience and remain competitive in a saturated financial sector Massive counter competition with virtual banking solutions puts enormous pressure on banks to increase efficiency and optimize resources Lack of skilled resources, sharp spikes in labor costs, and the need to improve process efficiencies are some of the other challenges facing the banking and financial sectors today. Robotic process automation (RPA) has become popular in banking and finance as a result of this
What is Robotic Process Automation (RPA) in Banks?
RPA is a technology used to automate manual business processes to help banks remain competitive in a growing market. RPA Banking provides customers with the ability to automatically process payments, deposits, withdrawals and other banking transactions without manual intervention. Banks can see the ROI of RPA very quickly.
If you are the one who is trying to automate RPA in Banking, you can know How Much Do AI Projects Really Cost . RPA takes full form in banking as the technology continues to grow. More and more people are using digital banking, cryptocurrencies and mobile payments These are just some examples of RPA in banks. These digital transformation projects remain at the top of the list for many banks and will continue to drive overall technological growth in the banking process I
The importance of RPA in the banking sector?
RPA addresses the key challenge of achieving efficiencies while keeping costs as low as possible However, in the banking sector, this goal entails the additional complexity of maintaining an optimal level of security. To meet these needs, Robotic Process Automation (RPA) has become an effective tool Accelerates the transition from labor through services to services through software
RPA and intelligent automation allow banks to execute repetitive processes such as data entry and customer service more accurately and effectively without overhauling existing systems. This frees employees to focus on high value activities while reducing costs, turnaround time, and manual mistakes
The following are the Some of the Top use cases included in RPA:
1.Customer service:
Banks handle a variety of inquiries, from bank fraud to account inquiries to loan inquiries, making it difficult for customer service teams to resolve issues in shorter turnaround times. RPA helps solve low priority queries, so your customer service team can focus on high priority queries that require human intelligence
Artificial intelligence in accounting and finance helps reduce the time it takes to view and onboard customer details on different systems Reduced waiting times and easier rewards have helped banks improve their relationships with customers.
2 Credit Card Processing:
Previously, it would take weeks for banks to verify and approve a customer's credit card application The long wait times made customers dissatisfied and sometimes even canceled their requests. But with the help of RPA, banks can now speed up the credit card sending process It only takes a few hours for the RPA software to collect the customer's documents, perform a credit and background check, and make a decision based on the parameters set about whether the customer is eligible for a credit card. The whole process is completely streamlined using RPA
3.Mortgage processing:
In the United States, it takes 50 53 days to close a mortgage loan It took a long time to get approval because it had to go through a variety of tests such as credit inquiry, job confirmation, and screening. Minor errors on the part of the customer or bank can slow down the process and create unnecessary complexity and delays With the Benefits of AI in banking and finance , banks can now accelerate their processes by removing bottlenecks that delay them based on established rules and algorithms
4.Accounts Payable:
Accounts Payable (AP) is a monotonous process that uses Optical Character Recognition (OCR) to digitize a supplier's invoice, extract information from every field on the invoice, validate it, and then process it. RPA helps automate this process and automatically deposits payments into vendor accounts after error and validation adjustments
5.Fraud detection:
One of the main concerns of the bank was the increase in fraud cases With the advent of technology, the number of cases of fraud has increased. This makes it difficult for banks to verify all transactions and manually identify fraud patterns
RPA uses an 'if-then' method to identify potential fraud and report it to the appropriate department For example, if multiple transactions were made within a short period of time, RPA identifies the account and flags it for potential threats This helps banks investigate accounts and investigate fraud.
6 KYC Process:
Know Your Customer (KYC) is an important compliance process for any bank. This process is so critical that it requires at least 150 to more than 1,000 FTEs to verify a customer, and some banks spend at least $384 million per year on KYC compliance, according to Thomson Reuters. Given the costs and resources involved in the process, banks are now starting to use RPA to collect, screen and validate customer data This allows the bank to complete the process in a shorter period of time with minimal errors and staff.
7.General Ledger:
The general ledger of banks must be updated with all pertinent data, including financial statements, assets, liabilities, income, and costs This information is used to prepare the bank's financial statements and is accessible to the public, media and other stakeholders
Given the sheer amount of detail required by disparate systems to prepare financial statements, it is important to ensure that the general ledger is error-free. Applications of AI in Banking steps in to the rescue in this situation It helps to gather information from other systems, validate them, and update them on one system without errors
8. Report automation:
As part of compliance, banks are required to prepare reports on various processes and present them to the board of directors and other stakeholders to demonstrate the bank's performance. When considering how important the report is to the reputation of the bank, it is important to ensure that it is error-free
There are systems to present the data and templates to present in a digestible format, but what the bank was asking for was accurate, error-free data.Robotic process automation in banking industry helps banks prepare reports with accurate data It collects information from other sources, validates it, arranges it in an understandable format, and schedules sending to other sources.
9 Account Closing Procedure:
Banks receive multiple requests to close accounts each month. Occasionally, the account may be closed if the customer fails to provide the necessary evidence for the operation of the account. The scope of human error also increases when considering the amount of data banks process each month and the checklists they must follow.
10. card management:
RPA can assist with processes such as replacing lost/stolen cards, canceling claims, billing processes, or determining card blocking (based on customer requests). Because these processes are often iterative, automation reduces staff workload, improves cycle times, and improves customer experience
RPA allows banks to send automated notifications asking customers to provide necessary evidence. It can also process account closure requests from the queue according to established rules for a short period of time with 100% accuracy
Let us see the benefits of RPA in Banking: You can seamlessly scale your work when you need it Robots can work longer and do not need to rest. You can manage the growing request volume during peak hours.
Save time: Once the robot application is set up, the time required to perform a specific task can be reduced by up to 90%.
Save money: Deloitte expects cost savings of 30% as a result of its RPA deployment Accenture provides a more optimistic forecast and offers an 80% savings in finance robots for certain tasks
Minimize interference from your IT department: Employees can be trained to manage their own robotic assistant
No additional infrastructure costs: Implementing RPA in finance and finance does not require significant infrastructure changes It is a layer on top of traditional banking applications
Increase the efficiency of human employees: Studies have shown that robots can work up to five times faster than humans in certain tasks As a result, people don't have to waste time and energy on routine tasks and can focus on more fulfilling tasks, which increases overall employee well being and job satisfaction
Reduce human error: Financial RPA systematically handles assigned tasks It improves print quality by eliminating errors that can be made by human nature, such as not paying attention to their duties.
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Banks can do more with less and benefit financially from RPA. Through numerous success stories and customer testimonials, USM Business Systems has helped banking and financial services modernize their service desks through intelligent automation and ensure consistency and seamless execution of compliance norms. If you are looking for an automation partner and want to enhance your banking with intelligent automation, Artificial intelligence development companies in USA are ready to help you.
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