With banking and financial transactions going digital, the preservation of banking and financial firms are tremendous to primarily, boost productivity and secondly, cut the operational cost.
With this rising demand, banks and financial firms are actively implementing Robotic Process Automation or RPA. The RPA plays an active role in automating the business processes that were previously done manually.
This automation is extremely important especially to function in a competitive market. Also, the return on investment in RPA is also extremely high. RPA in banking and financial firms mostly work by combining both robots and artificial intelligence to augment human operations.
Digital banking solutions, mobile payments and cryptocurrency have increased the demand for RPA in banking and financial institutions for all good reasons. Stated below are the ways in which different banking and financial firms are leveraging RPA.
How are Banking and Financial Firms Leveraging RPA?
1. Customer Service
In addition to managing financial transactions, banks and financial firms also have to deal with multiple queries on an everyday basis.
These queries can be as big as bank frauds, to as minor enquiries like when a payment won through Lottery Sambad or Dhankesari will be deposited in the banking account. When making such queries, the customers expect a quick reply to solve their issues.
RPA comes in handy in providing customer service by prioritizing different queries. They are also designed to resolve the low priority queries of the users and this allows the customer service team to focus on complex queries of the issue.
Also, while providing customer service, RPA can also be programmed to verify the customer details automatically.
2. Customer Onboarding
Customer onboarding is often extremely time-consuming as it is a long and drawn-out process. Previously, banking and financial firms used to employ people to manually verify the documents.
However, with RPA in action, the data can be captured from the KYC documents which are submitted by the potential customer. With the help of the optical character recognition technique or OCR, these documents can be verified automatically by the system.
3 Efficient Handling of Regulatory Compliances
There are many legal and financial regulations that banks and other financial institutions need to deal with. Manually checking whether the rules and regulations are followed or not can be extremely time-taking and tough.
RPA can offer help to ensure that the regulator compliances are met. Many studies have indicated that using RPA can improve the compliance process extremely.
RPA for meeting the regulatory compliances can be used to identify suspicious transactions and prevent financial losses and also, protects the banks and financial institutions from legal problems too.
4. Credit Card Processing
A few years ago, an employee used to manually validate and then approve or disapprove the credit card application. Because it was done manually, the time taken to do it was extremely high.
However, with RPA, the time taken to carry out the background check of the customer along with checking the parameters like the credit score of the customer can be done within a short span of time.
5. Automation of Report
Almost all financial institutions have to prepare different reports. These financial documents are usually presented to the shareholders and board. The performance is analyzed based on the reports and further, the challenges are identified to improve it.
When making such reports, the institution should ensure that all the financial statements are free from error.
However, avoiding such errors can be tough for a person because one needs to handle bulk data. RPA has made it easier for banks and financial institutions to manage this data with high accuracy.
The benefits of Robotic Process Automation are many for banks and financial institutions. The RPA can be used to grow the business by freeing the employees of the repeated task.
This can be useful in improving the scalability of banks and financial institutions. RPA also improves operational efficiency. Also, implementing RPA cuts the cost of the operational firms by 25-50 percent.
An advanced version of RPA can also be used for risk and compliance reporting. Implementing RPA also requires zero infrastructure cost and therefore the ROI is extremely high when implementing RPA.
In addition to that, the implementation of RPA is also faster. In short, RPA can be extremely helpful for the growth of any banking and financial firm.