RPA in the Financial Sector: The Key to Simplifying Your Banking Operations

The banking sector has witnessed huge transformation over the past few years. The most prominent financial institutions of today are continuously looking for innovative solutions to offer better services to customers. One such boon of technology that can completely change the way banks operate is Robotic Process Automation. Let’s delve deeper into RPA and its various aspects.

What is RPA in Banking?

The concept of automation has gained huge popularity in the banking sector. It eliminates manual intervention from various time-consuming processes like account opening and other customer services. This can help banking companies streamline their business processes. They can also reduce a significant amount of costs.

Advantages of RPA in Banking:

RPA offers banking firms and financial institutions with a lot of perks:

Operational Efficiency:

RPA implementation can help financial institutions and banks make their process faster and more efficient. This allows for improved business operations.

Cost Reduction:

RPA can save up to 20% of your processing time and cost. The cost-effectiveness depends on how seamlessly you implement RPA at your organisation.

Improved Accuracy and Compliance:

RPA can help generate audit reports for every process within the organisation. This helps reduce business risk significantly. It also maintains high process compliance.

Enhanced Customer Experience:

RPA can be used to improve the user satisfaction rate. Customers no longer have to wait hours before their requests can be processed.

Key Use Cases of RPA in Banking:

Here are some of the major RPA use cases in banking:

Customer Service:

Banks may have to deal with thousands of queries every day. These queries are mainly related to account information and application status. Banks find it difficult to respond to all these queries within a minimum period. RPA can be used to attend to the customer queries in real time. This helps free up human resources. The turnaround time to resolve a query is also reduced.

Compliance:

Banking firms need to adhere to a lot of rules at all times. RPA can play a significant role in accomplishing this. This increases the productivity and accuracy of various processes. This ensures that these financial institutions abide by laws.

Fraud Detection and Prevention:

Undesirable activities are occurring quite frequently in banks. It has become difficult to track all the transactions and detect malpractices. RPA can be used to track all these transactions seamlessly. They can easily raise a flag for possible fraudulent transactions. RPA also helps in preventing fraud by stopping transactions and blocking accounts.

Credit Card Processing:

It may take several weeks to validate the customer details manually before processing a credit card. Upon verification, the bank can approve the card. This long wait can easily end with RPA. RPA solutions can be used to validate all the customer information within hours. The credit card can be dispatched in a week.

Regulatory Reporting

Banks prepare various reports and present them to stakeholders to offer insights into their performance. These reports are of extreme importance, and there is no scope for error in any of the published reports. RPA systems can be used to draft reports accurately. This can be done by auto-filling data from the systems into the chosen report formats. This helps save time.

Account Reconciliation:

The account reconciliation process can become quicker and more accurate with RPA. Automation can systematically eliminate duplicate data. It can also serve account recognition requests with accuracy. This enhances the data quality of the overall system. The customers can also handle their accounts with greater ease and convenience.

KYC Process:

KYC has become mandatory for all bank customers. This process may include over 1,000+ FTEs to perform the necessary checks. Considering the time and cost involved in the manual process, banks have started using RPA to validate customer data. This has increased accuracy to a significant extent.

General Ledger:

Banks must keep their general ledger updated with all the crucial information like assets and liabilities. This helps them to prepare financial statements. RPA in banking can bring this data on a single platform. It also helps present the data in the required format. The accuracy is also enhanced.

Account Closure Process:

The desire to close an account is sometimes voluntary. Account closure also becomes necessary when the client fails to provide mandatory documents or the KYC is still pending. RPA can help banks close accounts in all kinds of scenarios. It can also send automatic notifications and schedule calls with the customers for the submission of various documents.

Cash Collection and Deposits:

Collecting cash from various points and depositing it in different branches can be time-consuming. RPA can assist with cash collection and deposit. It can take care of the records from multiple sources and integrate them onto a single platform. The security of transactions is also maintained. There is no risk of theft.

Account Origination Process:

Account origination can be time-consuming. The banking staff has to go through multiple stages to complete the origination process. Implementing RPA helps save the need to collect data manually. It also removes errors across the various processes. The regulatory requirements and compliance are also met.

Implementation of RPA in Banking

Following are the steps to implement RPA in banks:

Assessment and Planning:

The first step is to assess your organisation’s needs. This involves identifying the various financial areas for automation. The step also requires you to develop a multifaceted roadmap for the RPA implementation process.

Selecting the Right RPA Tools:

Without a proper RPA tool, you cannot execute the implementation process successfully. Identify and evaluate the right providers who would systematically support the design and implementation of RPA.

Developing and Deploying RPA:

Next, you choose the right RPA tools, it is time to develop the RPA solution and deploy it in your environment. While deploying RPA, ensure that you repeatedly test the solution so that you don’t face any bugs during production.

Change Management

A proper change management process needs to be in place at all times. That way, if any new change has to be implemented within the system, it can be done seamlessly without disrupting the original workflow.

Future Trends of RPA in Banking

With Industry 5.0 knocking at the door and technology changing the global business paradigm, it goes without saying that the future of RPA in banking looks bright. Robotics and automation, along with human expertise, will facilitate the following situations in the nearest future:

AI and RPA Integration:

The integration of RPA with AI can create intelligent automation systems. These systems perform tasks accurately and also learn and adapt over time. They help in the better resolution of complex problems.

Expanding Use Cases:

With each passing day, new use cases of RPA are coming to light. These use cases can be integrated into your RPA solutions so that you can enjoy enhanced services.

RPA as a Service:

Nowadays, many companies are planning to offer RPA as a service. This will save you the burden of implementing RPA from scratch. You can only opt for the services that you require.

In the end…

There are multiple benefits of RPA in banking. Banks and financial institutions can leverage these advantages to improve all their functional areas. RPA can also offer banks with a good ROI. So, if you plan on implementing RPA, it is high time that you contact Silver Touch Technologies and avail of their services. This will help you achieve an excellent outcome from your investment. Your banking processes can also be streamlined without any hindrances.

FAQs For RPA in Banking: