In the present scenario, the banking sector is under tremendous pressure. Why? The reason is to enhance productivity and increase efficiency to offer reliable and more secure financial services to their customers.
Now, with the current pandemic due to COVID-19, virtual banking services have taken the central position, and are on the way to become the future of the banking sector. At present, the hot topic in the finance sector is how to manage to work virtually without coming to the office. No need to worry as there is an answer. It is Robotic Process Automation or RPA!
RPA is creating such an environment where the banking and financial sectors can withstand tough competition in the most appropriate manner. From within, RPA is helping it to develop lower-cost and high-quality banking services without compromising security.
As per the study conducted by McKinsey, the next few years will see more than one-fourth of banking procedures passing through automation for streamlining the banking (and other financial) services smoothly. Moreover, banking RPA software will generate business revenue of $900 million by the coming year, 2022.
The given fact indicates that RPA is grasping banking services into its fold to offer better financial services to their needy customers. Today, there will be further digging into RPA and its functions not only to enhance the operational efficiency of the banking sector but also to create goodwill among their loyal customers.
Robotic Automation in Banking Industry
For the last few years, banking institutions have been spending mostly on compiling their operational cost (that comes at $270 billion). Besides, they are also facing issues related to payment of the regulatory fines, rise in expenses, and slow working procedures that have resulted in poor services provided to the customers.
To solve all the above issues, banking institutions have found solace in enterprise RPA that reduces manual work, minimizes the occurrence of risks, and improves customer experience. What’s more, what makes it better than traditional banking institutions is that there is no requirement for the development of new infrastructure without opting for a low-code approach.
Additionally, the main objective of RPA in the banking sector is to erase the repetitive work that reduced productivity. Besides, it engages the customers with real-time scenarios, thus meeting their financial requirements easily.
Moreover, RPA, after proper implementation, takes complete control over the system (that includes sending emails, opening, and closing applications, and transmitting information) from one system to another.
Involvement of RPA in Banking Industry
There is greater utilization of RPA in the banks. To make it look fruitful; its implementation should involve:
- Identification of Correct Procedure for Automation
- Evaluation of overlapping of different applications as well as business processes
- Performing automation to the processes via robots
- Monitor and govern the robots for the creation of excellence
Use-Case of RPA in Banking Industry
So, there are some use-cases where RPA software tools prove to be successful for the banking sector and are as follows:
I. Offering Valuable Customer Services
There is a large volume of customer grievances among customer service centers that are repetitive in nature. It comes as a great drawback as customers have to wait for a longer time and even worse, there is a delay in providing information to them that had been offered to them during the call.
Now with the presence of RPA service solutions, several issues such as password setting, managing complex tasks and automation of multiple financial steps have become somewhat easy. It resolves the customer’s concerns on a priority basis. This not only saves time and effort but also enables banking admin to provide the best possible solution to them with great efficacy.
II. RPA Improves Compilation Procedure for Banking Institutes
For the proper functioning of any financial institution, they must adhere to the rules and regulations strictly. They have to perform several duties like effective communication with staff, monitoring the activities properly, reporting issues, and taking steps to prevent money laundering. Regardless of everything, the objective of the compliance team in an organization is to remain proactive throughout its tenure.
Though adhering to every single rule is a tedious task, but with the presence of RPA, it becomes somewhat easy. It collects a large amount of data to compile it automatically. Thus, there is a saving of ample time for employees to perform such mundane tasks.
In addition, it also makes the KYC process look less expensive for the banking institutions. RPA successfully screens the data provided by the customers, and thus allows employees to focus on other banking works easily.
III. Efficient Report Automation is Possible with Automation
A vital aspect of compiling a project is to prepare its report appropriately. What’s more, it must have accurate data with no room for any error. The banks need to present an accurate report for all their stakeholders to showcase their all-round performance.
For it to happen, RPA collects information from multiple platforms, confirms their authentication, and then produce the info in the specific format as per the present need (with no human error). Furthermore, it also auto-fill the present report format in minimum time to provide the data in multiple formats with great ease.
Moreover, a similar report is also used by the organization to prepare their financial statements perfectly. Why? Because creating a financial statement requires bulk amount of data. Preparing it manually can consume lots of time and effort. Thus, the use of RPA for collecting genuine info is the best way to move forward.
IV. RPA Readily Solves Account Payable Issue for Banking Sector
Account payable is a simple, yet crucial procedure in banking and other financial systems. It includes collecting information from the vendor, verifies it, and then process for further payment. Why is it a perfect case of implementing with RPA? The answer is that it lacks intelligence and thus can be performed efficiently.
Likewise, the RPA tool collaborates with Optical Character Recognition (OCR) to solve the above-given issue precisely. How OCR works? It goes through vendor information, read it from its digital copy and then provide necessary information to the RPA system. Afterward, RPA checks the given information with the info present in its database, and if found right; then it can proceed with payment. Moreover, if any error is found, then RPA generates a notification for its quick resolution.
V. Successful Fraud Detection with RPA
With the arrival of new technology, there is a significant increase in fraud detection. When it happens, it becomes a challenging task to keep a check on every transaction or fraud cases for the bank management. Now, RPA comes with bots that are capable of identifying new frauds through effective utilization of the ‘if-then’ algorithm.
Doing such work manually is not fruitful in solving flaws, instead, RPA software can be beneficial as it completes the overall review within a few minutes and identify even a minute fraud in the system.
Besides, it also takes necessary steps to assess the risks for customers and warn them via notification to prevent further fraud attacks on their banking services. It happens as RPA comes with high-end platforms that offer more robust features as compared to any IT security infrastructure.
Also, RPA service providers take care that their software opts for a predictive approach to find out a flaw even when they sense any doubtful suspect in the system. So, customers can assure them that their data and money are safe with their banks.
Future Road Ahead
There has been significant improvement in the services of the banking sector because of RPA. Moreover, it also makes them highly competitive to withstand immense pressure in the finance market. So, the banking sector is preparing itself to change its approach towards meeting customers’ needs.
Initially, it will be a costly investment. But with the passage of time, it will offer great value to the financial business so that banking institutions can achieve good ROI within a few months. So, the time has arrived to take the central stage to opt for smart banking operations effectively.