How To Implement Robotic Process Automation (RPA) In Finance And Banking?

 How To Implement Robotic Process Automation (RPA) In Finance And Banking?

RPA in finance can be defined as the use of robotic applications to enhance (or replace) human endeavours in the financial sector. The RPA helps banks and accounting departments automate repetitive manual processes, allowing employees to focus on more complex tasks and gain the competitive advantage of the organisation.

Basic rule-based robotic process automation is limited to what it can do. It simply follows the rules to automate tasks without variation. For example, it can log into an account, move some files and log out.

Robotic Process Automation in Banking Sector has dramatically streamlined a wide variety of back-office processes that once plagued bank employees. By shifting these tedious, manual tasks from man to machine, banks have been able to significantly reduce the need for human intervention, which has a direct impact on everything from performance and efficiency levels to staffing issues and costs.

Customer service

Banks deal with many questions every day, from account information to application status to balance information.

RPA can automate such rule-based processes to respond to questions in real time and reduce turnaround time to seconds, with the help of artificial intelligence freeing up human resources for more complex tasks, RPA can also solve decision-making questions.

By using NLP, chatbot automation allows bots to understand the natural language of chatting with customers and to respond humanely.

RPA for accounts payable

When completed manually, it takes a long time for employees to digitise vendor invoices, verify all fields, and only then process payment so maintaining accounts payable. RPAs can perform this function in enhanced accounting with Optical Character Recognition (OCR).

OCR invoice information can be extracted and sent to robots for verification and payment processing. If errors occur, the system will notify the bank employees.

Credit card processing

Traditional credit card application processing can take weeks to verify customer information and approve credit cards. The long wait period is unsatisfactory for clients and cost to banks. However, with the help of RPA, banks can now process the application within hours.

Read More: How much does it cost to build digital banking app like RAKBANK

The RPA can simultaneously talk to multiple systems to authenticate information, such as required documents, background checks, and credit checks, and make decisions based on the terms and conditions for approving or approving the application.

Mortgage loan

In the United States, it takes approx. A mortgage loan takes 50 to 53 days to process. The mortgage loan process is done through various checks such as credit checks, repayment history, employment verification and inspection. A small error slows down the process.

Since the process is based on specific rules and checks, the RPA speeds up the process and clears the hurdle to reduce the processing time from days to minutes.

RPA Get to Know Your Customer (KYC)

KYC is a time consuming process that banks have to perform for each customer. It can handle up to 1000 full-time equivalent (FTE) hours and up to $ 384 million a year in a compliant manner.

Alert Investigation also takes time, but up to 85% of daily alerts are false positives and about 25% require senior analysts to review the level. With all efforts, banks are losing € 50 million a year on KYC compliance sanctions.

Fraud detection

One of the key concerns of banks with the adoption of digital technology is fraud. It is extremely difficult for banks to keep track of all transactions in order to detect probable fraud. However, by minimising the reaction time, RPA can track transactions and increase the flag for fraudulent transaction patterns that are possible in real time. RPA fraud can be prevented in some circumstances by restricting accounts and halting transactions.

Account closing process

Due to such a large number of customers, it may need to receive some account closing requests on a monthly basis.

With robotic process automation, it is easy to track such accounts, send automated notifications and schedule calls for required document submissions. The RPA also helps banks to close accounts in exceptional cases such as customers' failure to provide KYC documents.

There are many benefits of RPA in the banking and financial services industry. Some of the most popular are described below -

• Accelerates customer onboarding

• Increases income and cash flow

• Reduces operating costs

• Manual automates the process

• Reduces human interventions that increase process efficiency

• Reduces customer loss

• Provides a better customer experience

• Reduces churning

• Improves customer satisfaction quality

• Builds customer loyalty and trust

• Improves data quality

• The industry stabilises best practices

Read More: How ai is disrupting the banking industry

The end

Many leading banks have already begun to re-strategize their performance models to influence automation-lead distraction and RPA is one of the key technology enablers in the current situation. We have worked with USM Business, an artificial intelligence development company in USA on a number of automation usage cases across industries, including customer service desk automation, employee onboarding, risk compliance management and retail fraud detection.

Many of these solutions affect general automation with RPA, while others are more complex with many other technologies incorporated locally into a fully hyper-automation capable platform.