RPA in Banking: Industry Examples, Benefits, and Implementation

Analyzing client behavior and preferences using modern technology can help. This is how companies offer the best wealth management and investment advisory services. Banks can quickly and effectively assist consumers with difficult situations by employing automated experts. Banking automation can improve client satisfaction beyond speed and efficiency. To successfully navigate this, financial institutions require to have a scalable, automated servicing backbone that can support the development of customer-centric systems at a reasonable cost. Establishing high-performing operational teams led by capable individuals and constructing lean, industrialized processes out of modular, universal components can bring out the best.

An Accenture study found that banking executives now expect that AI-based technologies will not only transform their industry, but will also add net gains in jobs. Let’s discuss components of banking that can benefit from intelligent automation. Simplify your close processes with financial close automation software that work to solve any problem, no matter how complex. With an effective task monitoring solution, individuals can quickly adapt to changes in tasks due to unexpected circumstances, recently hired employees, or reassignment in roles. Instead of having to rely on in-office computers to get your job done, you can access and complete the financial close in any remote location.

What Is Banking Automation?

One application is the difficulty humans have in responding to the thousands of questions they receive every day. For instance, intelligent automation can help customer service agents perform their roles better by automating application logins or ordering tasks in a way that ensures customers receive better and faster service. Digital workflows facilitate real-time collaboration that unlocks productivity. Lastly, you can unleash agility by tying legacy systems and third-party fintech vendors with a single, end-to-end automation platform purpose-built for banking. When it comes to maintaining a competitive edge, personalizing the customer experience takes top priority.

Using traditional methods (like RPA) for fraud detection requires creating manual rules. But given the high volume of complex data in banking, you’ll need ML systems for fraud detection. During the pandemic, Swiss banks like UBS used credit robots to support the credit processing staff in approving requests. The support from robots helped UBS process over 24,000 applications in 24-hour operating mode.

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Most of these can be included in the system with little to no modification to preexisting code. In addition, they can be tailored to work with as many existing systems as feasible and provide value across the board. Automation can help standardize processes and workflows while allowing COOs and heads of operations access to these workflows and quickly adapting them when needed without having to train their teams on new processes. When asked why customers started using a neobank compared to a traditional bank, 32% of survey respondents listed price and easy access as reasons, while 30% said the speed of service. Neobanks emerged after tech giants (like Gates) began to think about digital transactions for money. Today, companies that can offer small investors and businesses access to the financial world are the ones coming out on top.

With the use of automatic warnings, policy infractions and data discrepancies can be communicated to the appropriate individuals/departments. Invoice processing is a key business activity that could take the accountant or team of accountants a significant amount of time to guarantee the balance comparisons are right. Back-and-forth references and logins into various systems necessitate a hawk’s eye to ensure no mistakes are made, and the figures are compared appropriately. Some of the most obvious benefits of RPA in finance for PO processing are that it is simple, effective, rapid, and cost-efficient. Invoice processing is sometimes a tiresome and time-consuming task, especially if invoices are received or prepared in a variety of forms.

Banking and Automation- the two terms are synonymous to each other in the same way bread is to butter – always clubbed together. We live in a digital age and hence, no institution of the global economy can be immune from automation and the advent of digital means of operations. In fact, banks and financial institutions were among the first adopters of automation considering the humongous benefits that they get from embracing IT. Companies in the banking and financial industries often create a team of experienced individuals familiar with the entire organization to manage digital acceleration. This team, sometimes referred to as a Center of Excellence (COE), looks for intelligent automation opportunities and new ways to transform business processes. They manage vendors involved in the process, oversee infrastructure investments, and liaison between employees, departments, and management.

• Banks can do fraud checks, and quality checks, and aid in risk reporting with the aid of banking automation.
• The elimination of routine, time-consuming chores that slow down processes and results are a significant benefit of automating operations.
• Helping deliver enhanced digital customer experiences, zero-touch self-service, and streamlined processes across the regular, everyday back and front office transactions.
• It delivered a 40% improvement in efficiency and a 70% reduction in processing time.
• Automation is fast becoming a strategic business imperative for banks seeking to innovate – whether through internal channels, acquisition or partnership.

As mentioned earlier, customers and employees are the cornerstones of the banking sector. You have to constantly be on par with your customers and a few miles ahead of your competitors for the best outcomes. This minimizes the involvement of humans, generating a smooth and systematic workflow. Comparatively to this, traditional banking operations which were manually performed were inconsistent, delayed, inaccurate, tangled, and would seem to take an eternity to reach an end. For relief from such scenarios, most bank franchises have already embraced the idea of automation. Completing same-day funds transfers can require time-consuming manual processes.

What is Banking Automation?

This is great for listing branch locations, loan officers, loan offerings, and more. For easier form access and tracking, consider creating a Portal for all customer forms. This tool automates alerts, assigns deadlines, and tracks form completion. An understanding of bank accounts and services is essential to understand the function of automation in banking. Banks offer a variety of services for both personal and commercial accounts. Banks can use intelligent automation to extract data from ID and financial documents, reducing the need for manual data entry.

An approval screening is performed where it identifies any false positives. If you are interested to learn more about the use of Nividous RPA in the banking industry, watch the on-demand webinar on ‘RPA in Banking and Financial Services’ today. There are numerous RPA use cases in banking in addition to what is mentioned in the infographic. The list below highlights some of the most rewarding RPA use cases in the banking industry. As per Gartner, the market size for RPA solutions is estimated to reach $2.4 billion by the year 2022.

Use cases for RPA in Banking

The best way to look at intelligent automation in the future is as a solution that can deliver improvements across the entire customer journey. Inaccurate financial reporting can have a significant negative impact on a bank’s operations. Add in regulations and strict compliance standards, and the wiggle room for inaccuracies dramatically decreases. Repetitive discrepancies can result in damage to reputation and lead to non-compliance and fraud if not addressed and corrected outright. By automating certain tasks within the financial close process, the risk for human error is decreased and the level of accuracy increases, effectively mitigating potential write-off risk.

As we analyze what automation means for the future of banking, we must look to draw any lessons from the automated teller machine, or ATM. The ATM is a far cry from the super machines of tomorrow; however, it can be very instructive in understanding how technology has previously affected branch banking operations and teller jobs. It helps banks stay ahead in the competition and relevant in the market that is flooded by emerging financial technology and innovations. Along with that, it is one of the biggest contributors to the significant growth of the business. The process of approving a mortgage loan took more than 60 days before automated processes were initiated.

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Banking Automation software reduces the number of manual controls, reporting errors, and operational costs of the finance and accounting function. Automation in banking substantially enhances regulatory compliance and reporting processes. Financial institutions must adhere to a myriad of regulations and reporting requirements, which can be a complex and time-consuming endeavor.

• If further information is needed from the customer, the form can be sent back to them with clear instructions.
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• Business processes like account closing, dispute tracking and rate changes are vital, but they shouldn’t monopolize internal resources like brain power, time and dollars.
• In the banking and financial sectors, the information related to the customers is of utmost importance.

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