Banking & Financial Services

The Banking and Finance industry has gone advanced over the last few years. Robotic Process Automation (RPA) has been effective and powerful tool. Until robotic process automation was evolved as a solution for the banking industry, professionals struggled to connect the many legacy systems being used in this sector. RPA has helped to great extent to manage and retrieve the information effectively. It has also streamlined a wide variety of back office processes that once consumed lot of time for the officials, thus reducing the delays in these processes and significantly reduce the need for human involvement. Some of these back office processes which have been automated are detailed below.

As this process requires several documents requiring manual verification, Customer onboarding in banks is a long, drawn-out process. RPA simplifies this process with by capturing data from these verification documents using OCR technology which can then be mapped against the information provided by the customer in the registration form. On automatic verification, this data can then be ported into the customer management systems, thus assisting in avoiding manual errors while saving both time and effort of the employees.

Every customer facing employee of the bank deals with multiple queries during the course of the day. These queries may range from account information to balance information to application status making it difficult to respond within low response times. RPA can automate such rule based processes to respond to such queries in real time thus reducing turnaround times and free up human resources to conduct more critical tasks.

RPA along with artificial intelligence can be used to resolve queries which needs decision making. Chabots can understand the natural language with the help of NLP, and chat with customer and respond like human.

Use of RPA in the account opening process to extract data from the registration forms and updating the core banking applications has resulted in elimination of errors and reduction in time as opposed to when done manually. The account opening process thus becomes much more straightforward, quicker, and accurate resulting in a sharp reduction in TAT while, at the same time, maintaining complete operational accuracy and mitigated costs.

One of the major reasons for the closure of accounts is due to the non-compliance in the KYC process as the client may not have provided the mandatory documentary proofs required for operating the account. The number of account closure requests that banks have to deal with monthly is enormous. Using RPA helps the bank in tracking these accounts and sending out notifications and reminders for the documents which are required to complete the process. Using RPA banks can also process the account closure requests in the rule-based form in short duration with 100% accuracy.

With the banking industry being a highly regulated one, compliance to all regulations is always a challenging task for banks. RPA facilitates the adherence of banks to the standards. With the help of RPA full audit trails for each & every process can be generated in banking, thus reducing business risks while maintain high process compliance. Not only does this help in reducing the operational costs, but also saves the time taken to perform the task which otherwise would have been done manually with inherent risk of errors.

Providing consumer loans is one of the critical areas of service for any financial institution. This process is extremely process-driven and time-consuming which makes it extremely suitable for RPA adoption. RPA technology can be used to effortlessly handle the processes with clearly defined rules and exceptions, thus reducing the loan processing time tremendously. As a result, the loans can be approved much faster, leading to enhanced customer satisfaction.

Banking regulators have stipulated the Banking customers to fill the Know Your Customer (KYC) form for opening or operating a bank account. For the bank this process requires a huge volume of customer details to be validated within a short duration making the adoption of RPA technology inevitable. The process involves matching and validating the customer information provided with customer’s previously known records. RPA implementation proved instrumental in terms of saving both time and cost as compared to traditional banking solutions. This quick process of validation has enhanced customer experience and has led to improved accuracy in the customer data.

Processing of credit card applications is another time consuming process which would typically take days for validating customer documents submitted during application for the credit card. The long waiting period would often lead to customer dissatisfaction and in some cases lead to the cancelation of the request by a customer. Using RPA banks can now speed up the process and cut down on time by automating collection of customer documents, conducting of credit checks and background checks, and based on set parameters help make quick decisions to approve/disapprove the application with a rule-based approach. By using RPA, the whole process has been perfectly streamlined.

Banks need to routinely prepare reports on their processes as part of the compliance and present it to various stakeholders. Using RPA the banks can prepare these reports with a high level of accuracy. This involves gathering of data from various IT systems, validating the data and arranging it in the required templates which are understandable to everyone. It can further be scheduled to send these reports out to the different sources. Not only does this help in reducing the operational costs, but also saves the time taken to perform the task.

Some of the benefits of RPA in Banking and Finance:

Cost effective

Increased operational efficiency

Reduced Business Response Time

Faster implementation

Leverages Existing Infrastructure



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