The information phoenix of today has rendered data analytics to be time-consuming and error-prone, wherein small inaccuracies can lead to catastrophes, including the banking sector. For instance, a minor error in credit score reporting can lead to loans sanctioned to inappropriate candidates; this is where the Robotic Process Automation (RPA) technology comes in. The advent of RPA enables teams to focus on quality by streamlining various processes. The following are 10 benefits of adopting RPA in the banking and financial sectors.
1. Enhanced Customer Service
Customer service teams receive queries all through the day-night, and they are on their toes solving issues. However, these queries are wide-ranging – from fraud to account-related queries and questions on products and services. Automation can solve queries of n-number of customers/peoples on general daily basis questions. RPA not only saves time, also minimizes errors. RPA saves time for customer service teams by resolving low-priority queries and leaves the high-priority ones to humans. The systematic problem-solving approach helps improve customer relations, as well as retention. Moreso, RPA helps reduce the stipulated time for verifying banking customer details and streamlines redressal.
2. Identification
A critical compliance procedure across BFSIs and NBFCs, the Know Your Customer (or KYC) process takes up anything between 150 to over 1000 FTEs to perform the necessary checks. Apart from the time and cost, there is also the risk of errors. With the RPA, the entire process gets streamlined, and errors are minimized.
3. Compliance
Compliance is an incredibly arduous function, given the complexity and volume of protocols. Also, humans are privy to sickness and fatigue and have a limited window for sublime performance. RPA resolves this dilemma by rendering round-the-clock 24/7 functionality with fewer FTEs (Full-time Equivalent Employee). As a result, task monotony is eliminated, and employee satisfaction is elevated.
4. Enhanced Communication
Just like social media news feeds and notifications, the banking sector communicates through alerts. From a micro perspective, this communication is just a mere message. However, in the realm of the larger lens, this redefines the roles of humans. With the RPA, banking clients now receive automated alerts when a transaction – payment, withdrawal, or predated mutual fund investment – has gone through. Furthermore, information about important events, such as periodic reports or a special conference about new banking regulations, is communicated. The automated message is then the functional result of a pre-fed algorithm that kicks in on D-Day, thereby ensuring timely and accurate communication.
5. Minimize Humane Errors
As humans, we all have our peaks and plunges in our schedules and, but automated machines do not. Furthermore, as humans, we are self-aware of our shortcomings, and we succumb to avenues for reliable information – such as the RPA. Regard it as a demi-god if you may, the RPA saves banking blunders such as wrongful lending and reporting.
6. Detection of Frauds
A crucial concern for banking institutions is the burgeoning number of frauds. The RPA brings any red flags to the concerned officers using the “if-then” method. For instance, a common contention is multiple transactions made within a short time. These and other such patterns serve as green signals for fraud investigation.
7. Credit Card Approvals
Swipe and spend is the 21st-century trend. Behind this seemingly simple task of swiping cards for purchases lies tremendous patience and waiting time. However, the RPA comes to the rescue by reducing the processing and waiting time considerably; it gathers all the required information and scans your background in a matter of hours. You can apply for a credit card in the morning and have the same approved by the day’s end.
8. Processing Mortgage
Just like the process of credit card approval, the process of mortgage approval was cumbersome and time-consuming, too, before the RPA. The RPA technology alleviates bottlenecks such as minor errors using an algorithm and set rules, thereby streamlining the process.
9. Financial or General Ledger
This aspect pertains to the banking institution’s financial stability and comprises information such as revenue, expenses, assets, liabilities and cash flow. When exposed to the public eye, banks are obligated to transparency and accountability. With humans, errors are inevitable. Therefore, RPA comes to the rescue of banks by gathering information, updating and validating it to ensure error-free reporting to the general public, media houses, and other stakeholders.
10. Automated Reporting
An integral internal compliance procedure of banks is the reporting of various processes and the overall performance to the board, auditors, and other stakeholders; thereby making error-free reporting paramount. This is where the RPA serves as a white knight for the bank’s reputation. It gathers information, validates and updates it, arranges it in a user-friendly format, and finally disseminates the same to different sources.
Final Comments
Considering the convenience and functionalities rendered by the RPA, it is an incredible tool that can transform the bankingand financial sectors, starting from identifying customers to delivering satisfactory services. Despite the costly investment, it provides considerable value to businesses across the domains.
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