Robotic Process Automation In Banking

The banking industry, as always, is in a state of constant flux. You keep up. Adapt. Stay Ahead.

According to PWC’s report titled “Financial Services Technology 2020 and Beyond”, compared to other sectors 81% of CEOs in the banking industry are focused on the pace of technological change. Why so?

Banks are constantly on the lookout for:

• Improving customer experience
• Staying ahead of the competition
• Hassle-free and faster processes

To all these main concerns, what could be the best digital solution? Enter robotic process automation, also known as RPA. RPA is different from business process automation (BPA) in the banking industry. BPA is an automation strategy that involves optimization of processes, process modelling, and integrations, among others. But RPA is more of automating repetitive tasks that mimic human behaviour to complete tasks.

What is RPA and How does it work?

RPA is an enterprise automation technology in which attended and unattended bots are used to execute repetitive tasks by augmenting human behavior. Robotic process automation can perform simple to complex tasks across all departments within the organizations. Examples include data entry/data processing, payroll processing, hiring and onboarding employees, inventory management, help desk, customer operations, and a lot more. RPA has been in existence for over four decades but has found its sweet spot in the 2000s, and it has become even more popular post the pandemic.  

What is robotic process automation in banking?

When it comes to back-end processes, banks are on the heavy side. As the processes are more to do with figures and crucial data, any slip-ups could prove highly risky.

Robotic process automation helps banks automate all such simple, rule-based or repetitive and back-end tasks. For instance data entry and customer service tasks like updating customer information, answering their basic questions, etc.  RPA augments human behaviour and performs actions without human intervention. Automating such manual tasks can significantly increase productivity and streamline operations.

Why do banks need RPA?

Banking is one such industry that is plagued with critical and complex processes, where majority are repetitive. In the post-COVID world, where digital consumers are on the rise, banking institutions are forced to innovate and ramp up their workflows and processes with new technologies to give their customers an omnichannel experience across all channels - mobile, social media, email, etc. And the best fit here is robotic process automation.

Power of automation in banking

RPA has been used by many financial institutions across the globe to improve efficiency and reduce costs. It has proven to be one of the most effective ways to enhance operational performance. Here are some key benefits of using RPA in banking:

1. Cost-savings

RPA is an cost-effective solution for banking. Approximately, RPA can help save 25-50% of the overall. In a report titled “Rise of the robots” by KPMG states that “In the next 15 years, it’s likely that 45-75 percent of offshore jobs in the financial services sector will be performed by robots… …translating into 75 percent of cost savings for firms.” 

2. Enhanced customer experience

As RPA empowers banks automate processes or frequently asked queries such as bank balance, account information, loan information, the turnaround time is significantly reduced which increases customer satisfaction. 
Banks use RPA to help customers access services quickly and efficiently. This improves customer satisfaction and retention rates. 

3. Increased productivity

As RPA automates end-to-end workflows, users don’t have to spend time and efforts in basic tasks.  

4. Faster time to market

RPA enables easy integration with legacy applications and existing architecture, which means you can start using it right away.

5. Better risk management

Risk management is one of the most important factors to consider, especially in banking. The good news is that RPA can help reduce risks in operations. RPA can reduce errors, help organizations stay compliant with regulations, empower them to make better decisions; RPA can keep the systems and the customers’ data safe and secure.  

What Is The Impact Of Robotic Process Automation In Banking?

According to Grand View Research, comparing the global RPA market share by application, the BFSI sector contributed a 29% share of the revenue. This can be attributed to the fact that the banking industry is replete with repetitive tasks. However, RPA does come in many shapes and sizes. 

Traditional RPA serves only as a starting point for an enterprise’s automation strategy. As opposed to attended bots waiting on the wing, there are cognitive bots that can give end-to-end complex processes a facelift. Once the stakeholders get through the change and realize what can be achieved, advanced technologies like AI, OCR, and Analytics can be integrated into the core operations.

Watch Webinar: Traditional RPA is Dead: Cognitive RPA is the Future

Article source: https://article-realm.com/article/Health-Fitness/32101-Robotic-Process-Automation-In-Banking.html