Did you know that employees spend approximately 40 % of their time performing tasks that are easily capable of being automated? In particular, this is the case at financial institutions, where staff are suffocated with chores such as manually entering data, filling out paper forms, scanning, and so on. On the other hand, in this day and age of technology, these operations are easily capable of being automated. The RPA in banking and finance industry is a good example of where automation, often known as RPA, comes into play.
The use of scripts, programs, or bots that can carry out repeated tasks by adhering to a set of criteria that are described in the script or code is something that banks might potentially take advantage of. Even if RPA only saves 20% of the time that employees spend on their jobs, the boost in productivity would be enormous.
What is RPA in Banking and Finance?
RPA facilitates the digital transformation of financial institutions and banks by automating lengthy manual processes; this enables personnel to concentrate on more critical responsibilities and ultimately contributes to increased customer satisfaction and a competitive advantage for the organizations. Robotic Process Automation (RPA) serves as a highly beneficial instrument in addressing the urgent requirements of the banking industry while enabling organizations to optimize efficiency through the reduction of operational expenses.
The majority of automation in finance is concentrated in routine accounting operations, according to a McKinsey forecast. Meanwhile, only 56% of business development functions can be automated. It is safe to say that all industries have implemented robotic process automation (RPA) into their operations at this point; however, the banking and finance sector is currently at the forefront of this trend.
Also Read: Why Robotic Process Automation is the Future of Business
Role of RPA in Banking and Finance Sector
In the banking and financial industry, personnel often dedicate a significant amount of time to manual tasks, we are not solely discussing document-related processes. Loan approval, account opening, and customer care processes often rely on manual or rules-based procedures.
Automating a large number of rules-based operations in banks and financial organizations can result in substantial time savings. Bank employees are excessively burdened with work. If 20% of the operations in the banking and financial sector are automated with RPA, it will allow them to concentrate on crucial tasks.
Here are some of the rules-based banking processes that can be automated with RPA:
- Scanning documents
- Data input
- Supervising account-related actions and safeguarding consumer security
- Notifying clients
- Automated marketing
- Tasks related to creating an account
- Data validation
- Loan authorization
Therefore, many manual tasks in banks can be mechanized through the use of Robotic Process Automation (RPA).
Also Read: How RPAs Are Used for Business Automation
Top Benefits of Implementing RPA in Banking and Finance
1. Enhanced Client Experience
Positive word-of-mouth has the unquestionable power to build or destroy a company’s reputation. The client experience is highly valued by businesses, and the banking and financial sectors are no exception. Regretfully, working in a busy industry gives little time for effective communication and customer service.
In this case, the RPA system plays a significant role since it enables banks to integrate bot technology, which will carefully handle consumer enquiries and provide appropriate solutions to collaborate with clients. Additionally, the best bots are crucial to the automation and processing of financial transactions and consumer onboarding via mobile apps.
2. Efficiency in Scaling
Because of their scalability, robots can handle particularly heavy loads during busy periods by meeting the need for instantaneous responses. Another benefit of RPA is that it frees up bank staff from repetitive activities, allowing the bank to focus on more inventive growth plans.
3. Saving Money
Financial institutions can significantly cut down on the additional expenses associated with resources, systems, and personnel by doing away with redundancy and reducing the need for human interaction.
Manual process scheduling and data entry are two examples of tasks that employees may easily avoid doing again. Thus, thanks to improved efficiency, lower energy consumption, and saved time, this technology can help the financial system save around 20-25% of expenditures.
4. Save Money on IT
Using RPAs is not going to break the bank. Any size financial organization can incorporate digital systems with minimal functionalities and no specialized IT staff needed. Robotic software can often learn and operate complex systems with little to no specialized coding knowledge.
Companies will save money on hiring IT specialists because the solution automates their work.
Checkout our Trending Blog: Top 10 Guidelines for Efficient Robotic Process Automation
5. Improved Accuracy and Dependability
It is normal for humans to make mistakes. But in other cases, even minor slip-ups could lead to a major error that costs the company a fortune. Furthermore, it could potentially damage the consumers’ reputation in certain terrible cases.
The good news is that problems can be quickly and readily resolved by incorporating RPA systems. Robotic process automation allows the systems to efficiently and accurately handle the process. Modern technical developments, such as artificial intelligence and machine learning, also make light work of the massive amounts of data and procedures.
Remember that RPA solutions are accessible at all times and are not affected by data outages. Not only that, but the data is automatically, regularly, and efficiently backed up. As a result, any problems that do occur will only be temporary, and the procedure will resume normally very quickly thereafter.
6. Business Expansion
Banks and the financial services sector are utilizing both new and old data in their RPA implementation to close the gap between processes. Banks can produce better and faster reports for business success when crucial data is initiated and made available in a single system.
Also Read: How Robotic Process Automation Can Contribute To Retail Growth
Final Words
A comprehensive understanding of the database platform, enterprise resource planning (ERP) customer relationship management (CRM) platforms, and any other management platforms utilized by the bank is required to successfully implement RPA in banking and finance business. RPA software implementation for a bank is a very personal issue, as you can see from the previous sentence. To have a well-planned RPA project, get in touch with Aeologic Technologies. To have an understanding of the technologies that your bank employs, we collaborate with your internal IT staff.
