The BFSI sector has witnessed tremendous growth in recent years. Despite the pandemic and shrinking economy, the banking sector remains strong because of its widespread adoption of virtual banking and emerging technologies like Robotic Process Automation (RPA). As per Gartner research report, the pandemic has acted as a catalyst for business initiatives and making digital options the future of the banking industry.
In this article, we will go through RPA use cases in banking along with the major benefits of implementing RPA in the sector. Let’s start with understanding the concept of RPA in banking and its scope in ensuring the growth of the sector.
What is RPA, and How Can It Transform Banking?
Banks and financial institutions have adopted emerging technologies for remaining competitive in the market by offering personalized and rich experiences to their customers. Robotic Process Automation (RPA) is one of the promising technologies that assist banks to maximize efficiency and reduce various expenses.
A recent survey has revealed that as many as 80% of finance leaders have either implemented or are in the process to implement RPA for enhancing speed and accuracy in the sector. Some of the top benefits of RPA in banking include streamlining the workflow and automation of repetitive, time-consuming tasks. These benefits can increase overall efficiency and productivity over the period.
Here we mention the top five RPA use cases in banking.
5 Use Cases Where RPA Can Help Banking Sectors to Achieve Maximum Efficiency
Automation is the key to success in this challenging and competitive scenario. Talking about the banking sector, RPA can bring automation in all the major operations ranging from loan processing to fraud detection and KYC to Accounts payable.
Loan and Credit Card Processing
Both these processes are tediously slow and require a lot of attention to the details. RPA can bring down the loan and credit card processing duration of weeks and months to some minutes by bringing automation. Systems can combine RPA and ML to make proper decisions quickly.
Account closure requests can be a big headache for bankers. The customer’s non-compliance and other reasons can make this task difficult every month. RPA can handle this issue by tracking all accounts and sending the necessary notifications to customers regularly.
Know Your Customers (KYC)
It is one of the most critical and yet frustrating compliance processes for your bank. As per the Thomson Reuter report, few banks spend at least USD 500 million every year on KYC. RPA can collect the customer’s information and validate it perfectly to save time, effort, and money.
Accounts Payable (AP)
AP is a monotonous and daunting task that includes data extraction from all the necessary fields in the invoice and their quick validation. RPA can empower banking executives to credit all payments automatically to the vendor’s account after quick and accurate validation.
Expanding horizons of the banking sector increase the risks related to fraud and suspicious transactions. It is, therefore, necessary for banks to strengthen their fraud detection mechanism. RPA can take an ‘if-then’ method to identify such frauds or transactions quickly.
Other important RPA use cases in the banking sector are mortgage processing, fund transfer, and reconciliation.
Benefits of Implementing RPA in Banking and Financial Services
Let’s start with a Mckinsey report. It says that around 60% of occupations can automate more than 30% of activities with the help of RPA. Here are some of the key benefits of implementing RPA in the BFSI sector.
RPA promotes accuracy by eliminating human intervention in the process. In other words, RPA implementation can remove the possibility of human errors and custom bots remain available on a 24*7 basis.
Banks do not need additional IT infrastructure or hardware as RPA solutions are based on the Internet and cloud technologies. It can reduce the IT infrastructure of the banks while automating the system.
Chatbots can improve the customer experience and other bots can handle internal repetitive tasks to improve the employee’s experience. It saves the time and effort of users while increasing their efficiency and enhancing experiences.
Implementation of RPA in banking is useful in handling mundane and repetitive tasks. When RPA solution performs these tasks effectively, the bank staff can streamline their workflows and improve operations.
RPA solutions enable bank employees to focus more on bringing innovative financial products. As the RPA solution can handle monotonous tasks, banks can work on expanding operations and increasing the scope of their services.
However, it is necessary to choose the right platform and RPA service management company to leverage all these benefits for your bank.
Read more: Unlocking the Power of RPA in Marketing
How to Choose the Right Platform & RPA Service Provider For Your Bank
You can start your RPA implementation journey by defining the scope of the RPA solution in line with your bank’s objectives and necessities. You can consider the following aspects to choose the right RPA partner for your bank or financial organization.
Check the Integration Capacity
Your RPA platform should be user-friendly and capable of integrating with an existing banking system. It should support third-party software and the network of your bank seamlessly and continuously.
Optimum speed and seamless performance of the RPA solution for banking need to be ensured before moving ahead with implementation. You can ask for extensive quality tests and consider other parameters for ensuring high performance.
Find Cost of Ownership
The total cost of ownership (TCO) of your RPA banking solution is another essential factor to consider. You can measure it by taking various factors including vendor prices, license fees, maintenance costs, and installation costs.
Ask for Vendor Support
Strong vendor support is essential for ensuring a successful implementation of a customized RPA solution. RPA service management should be excellent so that you can get the advantage of streamlined deployment, user training, and regular updates.
When it comes to handling multiple RPA robots at once, the scalability and accessibility of the platform and the RPA tool matter. Also, it is necessary to integrate technological advancements into the RPA tool for banking.
RPA is capable of bringing revolutionary changes in the thriving banking sector. It benefits banks in transforming processes digitally and getting an edge amid intensifying competition. RPA service management can save time and costs for the banking industry while ensuring better resource utilization and higher customer or employee satisfaction. You can choose the right RPA partner to leverage the benefits of this futuristic technology.
Silver Touch Technologies CA is a renowned RPA services provider in Canada. We help emerging enterprises minimize redundant processes and optimize core processes using software bots. Our custom RPA solutions can enable entrepreneurs to increase the productivity of their organizations in a cost-effective way. Do you want to discuss the scope of RPA for your company? Just drop us a line at email@example.com and embark on the RPA journey!