Banking, financial services, and insurance (BFSI) is a pivotal and hectic sector where companies deal with lengthy processes of servicing financial products and services and implementing various productive strategies to enhance the welfare of customers.
As one of the key industries in driving and enhancing the economy of a country, banking and finance corporations are usually involved in creating redundant tasks. This includes organizing documents, clearing consumer queries, recording consumer and tax information, and being constantly alert to prohibit fraud and money laundering. Dealing with these mundane tasks can hinder productivity. So now, BFSI firms are incorporating RPA software to manage their daily operations.
Robotic Process Automation, or RPA, is an innovative software technology that utilizes the adeptness of software bots to replicate and perform human tasks such as building, deploying, monitoring, and managing without requiring manual intervention.
With proper RPA software, firms can alleviate the stress of repeating mundane tasks and instead input instructions to the bots to perform the mundane tasks. Thus, businesses will be able to perfectly streamline and automate their work and also reduce costs significantly.
The benefits companies garner from implementing RPA systems in their workflow are plenty. It is impossible to discuss them in a few words. So, here is an article detailing the benefits of Robotic Process Automation, especially in the Banking and Finance sector.
Why should banking & finance niches leverage RPA?
1. Enhanced customer experience
Nothing improves a company’s reputation more than positive word-of-mouth about how they treat their clients. Most organizations probably place the most significant emphasis on the customer experience, and the banking and financial industries are no exception. However, working in a busy sector leaves no time for efficient customer cooperation and communication.
RPA systems, on the other hand, enable banking app development projects to incorporate bot technology, which will attentively attend to customer inquiries and provide pertinent solutions to work with consumers. Today’s banking app development projects are designed to be interactive and intuitive. Integrating RPA technology will benefit businesses because the bots can tackle issues efficiently and quickly. The bots also play an influential role in automating and processing monetary transactions through mobile applications.
2. Repetitive tasks in banking operations are reduced
It is not surprising that banking and financial firms handle many tasks daily. Most of them are crucial and will take hours to process. However, instead of spending the workforce on mundane tasks, organizations can simply employ RPA systems to handle the mundane workload.
Loan processing, credit card application, Know Your Customer (KYC), and Anti-Money Laundering (AML) are some of the repetitive workloads almost every banking organization works on. With efficient RPA systems, firms can simply input the necessary data, access, and instructions, and efficiently manage the processes, saving time, resources, and money.
3. Increased productivity and efficiency
Another expected outcome of RPA systems is how they accomplish processes swiftly and effortlessly. These systems listen and follow instructions, leaving no space for ambiguity. Unlike manual processes, bots do not possess shortcomings.
Repeating redundant, mundane tasks every day can not only be hectic but also disrupt employees’ overall productivity. However, with RPA handling mundane tasks, employees need not associate themselves with energy-draining tasks. Instead, they can focus on operations enhancing the firm’s prosperity. According to Gartner, banking automation can save up to 25,000 hours of avoidable rework caused by human errors.
4. Cost savings
Eliminating redundancy and reducing the need for manual intervention means that banking and finance firms can significantly reduce the extra costs they spend on resources, systems, and workforce.
Employees could avoid repeating duties like entering new data and conducting manual processes. Utilizing this technology in the financial system can cut costs by about 25–50% due to increased efficiency, low energy use, and reduced time.
5. Improved reliability and accuracy
Humans are prone to make errors; it is natural. However, sometimes even the slightest mishaps might cause a grave mistake that might cost hefty losses for the firm. And, in unfortunate circumstances, it might even cost the customers’ good reputation.
But these worries can be easily alleviated with the incorporation of RPA systems. With RPA, the systems will handle the process accurately and efficiently. Tons of data and processes can be efficiently managed with the
newest form of technological wonders such as AI and ML. Also, RPA solutions cannot be deterred by data outages and are available 24/7. The data is backed up efficiently, automatically, and regularly. So even if any unfortunate incident and downtime might occur, it will last only for a short time, and the process will continue efficiently soon after.
6. Extract information with accuracy
Every process in a bank is handled with high precision and security. However, human mistakes are inevitable, and with tons of data stored in systems, it can be challenging to locate the relevant data and interpret them precisely.
RPA, an infusion of sophisticated technologies such as AI and ML, can easily store the essential information for any requested query in the ocean of data stored in systems. Also, when there are discrepancies or missing info on invoices, automated processing utilizes third-party databases to accurately collect information to streamline Accounts Receivable and Accounts Payable processes. However, with RPA, this process can be done within a matter of time.
7. Use for accounts receivable
One of the challenging tasks, accounts receivable, can cause significant losses in case of a mistake. Monitors accounts receivable manually is time-consuming and requires entering a lot of data. Therefore, relying on an effective RPA system will aid businesses in correctly monitoring and managing their accounts.
RPA bots will automatically generate invoices for your clients to expedite the payment processes. RPA bots will also send email notifications and reminders to ensure everyone is paid.
8. Offer credit score alerts
Credit scores depict the creditworthiness of a client. Bank institutions must keep track of the credit scores to ensure and avoid significant liability issues. With RPA, financial firms will also be able to monitor the credit score of their clients regularly.
With proper instructions, organizations will be appropriately notified when consumers’ credit score drops below a certain threshold. Before a consumer officially begins to declare bankruptcy, the banking automation software can monitor the status of credit scores, predict the possible outcomes, and offer guidance on navigating potential disasters.
9. Credit cards processing
The application process for credit cards might take minutes; however, the time for validation and approval used to take weeks. That is before the introduction of RPA systems.
RPA will do a fantastic job of streamlining the credit card processing procedure. Skimming through a mountain of paperwork and making numerous inquiries to thoroughly research and confirm a customer’s background information will be necessary. The entire checking procedure is completed quickly and precisely, and a final decision to approve or deny the credit card request is made based on predetermined criteria.
10. Mortgage processing
The application and validation process for mortgage loans took an unbelievable time. However, with recent technological developments, consumer patience is thin, which might impact the firm’s reputation. This is because the banks require credible information on the customer’s previous finances, loans, properties, and other details.
Considering the efficiency and reliability of RPA systems, banks can process and validate the required information within a short time. Without the slightest occurrence of error and discrepancies, banks can quickly validate the approval for mortgage loans.
11. Anti-money laundering (AML) and fraud detection
Banks are no strangers to fraud and other miscellaneous activities aimed to deteriorate the reputation of the banks. There is no exact process to pinpoint fraud, so banks will usually employ several approaches to identify common fraud occurrences.
However, these screening processes are better carried out by RPA systems. These systems will perform several processes to identify the credibility of any application or transitions and will detect frauds in a limited time. With the implementation of RPA systems, banks and financial institutions can compare the typical patterns of fraud and put a halt to them. Thus, preserving the reputation of the organization for a longer time.
12. Lower IT expenditures
RPAs are not expensive functionalities. With minimal investment, financial firms of any size can implement the systems without requiring a skillful IT team.
Most RPA bots do not require extensive coding knowledge to learn the system’s intricacies and operate them efficiently. Also, since the system automates the tasks, firms will not need additional IT experts.
Bottom line
Data inaccuracies in the banking and financial industries can escalate into costly errors. Additionally, in a fast-paced and hectic sector like banking, businesses must adopt the most advanced technologies to guarantee that the procedure is carried out skillfully and precisely.
Banking and financial organizations need the help of RPA systems infused in banking app development projects, which completely streamline the redundant activities and perform them effectively, for anything from background checks to banking automation.
Companies can enjoy the aforementioned advantages and a stress-free administration of business operations using appropriate RPA technologies.
