The unprecedented times has marked a turning point in technology and innovation. Banks have been devoting a significant portion of their IT budgets to technology that enable rapid adoption of new market trends and the implementation of revolutionary business strategies. To survive the epidemic, financial institutions are under increasing pressure to restructure their product offerings.
With the transforming business processes across enterprises, the banking industry is expected to develop. Over the coming years, the industry is projected to be driven by the desire to automate redundant processes and provide end users control. Quick Automation, Auto decision, Data Security, and Instant Scalability are four areas where the clients will be focused.
BFSI is a very competitive sector (especially given the significant counter-competition from FinTech and other virtual banking alternatives), banks and other financial institutions must constantly innovate, stay competitive, and provide great customer experiences to users.
Banks and financial organizations are under a lot of pressure to cut expenses and increase production. Banking industry include a scarcity of qualified employees, the need to improve process efficiency, and a dramatic increase in labor expenses, all of which have led to the implementation of Robotic Process Automation (RPA).
We will explore elements of RPA in the banking and financial services sector, as well as its benefits, potential, implementation strategy, and use cases, in this blog.
Robotic Process Automation in Banking Industry
In banking and finance, robotics is described as the application of advanced robotic process automation software to -
Install software robots on desktops and other end-user devices.
Create a workforce of artificial intelligence or virtual assistants.
In the banking business, RPA is a beneficial tool for addressing the banking sector's pressing demands and assisting them in maximizing their efficiency by decreasing costs through the services-through-software paradigm.
Banks and financial institutions must adopt a strategic, rather than a tactical, strategy to exploit this potential. There might be a second wave of automation and AI, in which machines and software bots will perform 10% to 25% of operations across a variety of bank functions, increasing total capacity and allowing employees to focus on higher-value jobs and projects.
According to a recent report, the financial services RPA industry will be worth a stunning $2.9 billion by 2022, a huge increase from $250 million in 2016.
Automation Power
Banks and financial institutions are said to have spent billions of dollars on compliance operations and fines over the last decade. Compliance expenditures account for over ten percent of a bank's operational expenses. Increasing operating costs, compounded by regulatory fines and stringent regulatory standards, slow down procedures and have an impact on customer experience.
Banks and finance institutions can use robotic process automation to minimize manual workforce, improve compliance, limit risks, and improve the overall customer experience. Furthermore, the low-code approach makes automation ideal for banks and financial organizations because there are no additional infrastructure needs.
The key objective of RPA in the banking sector is to aid in the processing of repetitive banking tasks. Robotic process automation (RPA) aids banks and financial businesses in increasing efficiency by engaging clients in real-time and using robots' numerous advantages.
RPA is a complex process that involves substantial personnel training, organized inputs, and governance. These RPA-based banking robots can assist in business operations, once set up and executed appropriately and ensure seamless functioning.
Examples from the banking industry of automation process -
- Automated Reporting
- Customer onboarding
- Know Your Customer (KYC) and Anti-Money laundering (AML)
- Account opening
- Mortgage lending
- Loan processing
Banking and Financial Sector RPA Opportunities
Banking and financial organizations have long been recognized for their time-consuming, manual operations, which have a negative impact on overall productivity and client satisfaction.
Implementing RPA in the banking business provides a fantastic chance to automate some of the following key banking tasks:
Customer service
The volume of daily customer enquiries in banks (ranging from balance inquiries to general account information) is considerable, making it difficult for bank employees to react quickly. RPA implementation solution can help banks automate routine, rule-based operations in order to effectively react to queries in real time, cutting turnaround time.
Processing of credit cards
Credit card applications are another time-consuming process at banks, which normally take several days to validate consumer information before authorizing the credit card.
With a rule-based approach, RPA implementation can help make speedy choices to approve or disapprove the application.
Account Closure
The quantity of account closure requests that banks must handle on a monthly basis is staggering. One factor is client noncompliance with the submission of required documentation.
Robotic Process Automation enables banks to address this problem by tracking all such accounts and issuing automatic notifications and reminders for the submission of essential papers.
Benefits of Implementing RPA in Banking & Finance
- Scalability
- Increased operational efficiency
- Cost-effectiveness
- Risk and compliance reporting
- Availability
- Zero infrastructure cost
- Faster implementation
- Business growth with legacy data
Final Thoughts
Many banks and financial institutions have already begun to implement RPA in their operations, as opportunistic and point-based solutions that are quicker and easier to deploy than large-scale transformations.
RPA, or Robotic Process Automation, services can help in digital transformation for the banking sector if correctly implemented, automating manual, repetitive, and time-consuming processes. The effect of automating such routine processes would be increased productivity, a significant reduction in error rate, and a quick turnaround time.
Having a partner with proven competence in RPA tools, technologies and staffing is critical throughout the RPA implementation process. Not only will this aid banks and financial institutions, but it will also help them determine when and how to move from RPA to next-generation tools like AI and beyond.
We've worked on a variety of use cases at CIGNEX, including new business, customer service, staff onboarding, service desk automation, and more. We've developed a highly disciplined method to creating and deploying RPA systems based on our diverse experience. We collaborate with businesses to develop an RPA implementation roadmap, choose the correct technologies, create a time-boxed proof-of-concept, perform governance, as well as set up the team and test the solution before going live.
Do you want to learn more about how RPA might help you? Please get in touch with us by clicking here.
