With the digitization of banking and financial transactions, the preservation of banking and financial businesses is great for, on the one hand, increasing productivity and, on the other hand, reducing operational costs.
With this growing demand, banks and financial firms are actively implementing robotic process automation or RPA. RPA plays an active role in automating business processes that were previously done manually.
This automation is extremely important especially to operate in a competitive market. Moreover, the return on investment in RPA is also extremely high. RPA in banking and finance companies primarily works by combining both robots and artificial intelligence to augment human operations.
Digital banking solutions, mobile payments and cryptocurrency have increased the demand for RPA in banking and financial institutions for all the right reasons. Below are the ways different banking and finance companies are leveraging RPA.
How do banking and finance companies benefit from RPA?
1. Customer service
In addition to managing financial transactions, banks and financial companies also have to deal with multiple queries on a daily basis.
These queries can be as big as bank fraud, or as minor as when a payment has been made. Sambad Lottery or Dhankesari will be deposited in the bank account. When asking such questions, customers expect a quick response to resolve their issues.
RPA is useful for providing customer service by prioritizing different requests. They are also designed to resolve low priority user queries, allowing the customer service team to focus on the complex queries of the problem.
Additionally, while providing customer service, RPA can also be programmed to automatically verify customer details.
2. Client Onboarding
Customer onboarding is often time consuming as it is a long and tedious process. Previously, banking and finance companies employed people to manually verify documents.
However, with RPA in action, data can be captured from KYC documents that are submitted by the potential customer. Thanks to the technique of optical character recognition or OCR, these documents can be checked automatically by the system.
3 Effective regulatory compliance management
There are many legal and financial regulations that banks and other financial institutions have to deal with. Manually checking whether rules and regulations are being followed or not can be extremely time-consuming and difficult.
RPA can offer assistance in ensuring regulatory compliances are met. Numerous studies have indicated that using RPA can significantly improve the compliance process.
RPA to meet regulatory compliances can be used to identify suspicious transactions and prevent financial losses and also to protect banks and financial institutions from legal issues.
4. Credit Card Processing
A few years ago, an employee would manually approve and then approve or disapprove the credit card application. Because it was done manually, the time needed to do it was extremely high.
However, with RPA, the time required to complete the background check of the customer as well as the verification of parameters such as the credit score of the customer can be done in a short period of time.
5. Report Automation
Almost all financial institutions have to prepare different reports. These financial documents are generally presented to shareholders and the board of directors. The performance is analyzed on the basis of the reports and furthermore, the challenges are identified to improve it.
When preparing such reports, the institution should ensure that all financial statements are free from error.
However, avoiding such mistakes can be difficult for a person as there is a lot of data to manage. RPA has made it easier for banks and financial institutions to manage this data with great precision.
The benefits of Robotic Process Automation are numerous for banks and financial institutions. RPA can be used to grow the business by freeing employees from repetitive work.
This can be useful for improving the scalability of banks and financial institutions. RPA also improves operational efficiency. Additionally, implementing RPA reduces the cost of operational businesses by 25-50%.
An advanced version of RPA can also be used for risk and compliance reporting. Implementing RPA also does not require any infrastructure cost and hence the return on investment is extremely high when implementing RPA.
In addition to this, the implementation of RPA is also faster. In short, RPA can be extremely useful for the growth of any banking and finance business.