How Banking Process Automation Can Transform Your Financial Institution

Identify them on your process map, prioritize based on the benefits their automation can yield, and develop and document a set of possible case scenarios of the selected workflow. After the most tedious tasks are automated, you can move at your own pace towards full automation. Radius Financial Group relied on RPA in banking to accelerate mortgage processing. Before RPA, loan processors would feel overwhelmed handling 30 loans in their pipeline, but now with their robotic assistants, they feel comfortable managing up to 50 loans without feeling stressed. According to McKinsey, general accounting operations have the biggest potential for automation in finance. Automation can help you free yourself of mundane actions that drown your reps in inefficiencies and replace them with complex business challenges that need the human touch.

• Consider automating both ingoing and outgoing payments so that human operators can spend more time on strategic tasks.
• One reason is the non-compliance on the part of the clients in the submission of mandatory documents.
• Handling multiple teams across different geographies can be tedious for even your best managers.
• By minimizing human errors in data input and processing, RPA ensures that your bank maintains data integrity and reduces the risk of costly mistakes that can damage your reputation and financial stability.

For these reasons, many financial institutions have been investing in Robotic Process Automation (RPA) to reduce costs and improve compliance. By implementing smart banking process automation, your financial institution can provide customers the digital experiences they expect. At its core, banking process automation is about building workflows that are automated, paperless, and secure.

Just like customer onboarding, RPA has made the account opening process convenient, quick and accurate. It eliminates the transcription errors between the banking system and new account requests, which automatically improves the data quality of the system. Through RPA integration, multiple banks are using robots for their account opening process. What these robots do is fetch information from the forms and automatically fills data into different host applications.

How is RPA used in Banking? RPA use cases in banking

With the involvement of an umpteen number of repetitive tasks and the interconnected nature of processes, it is always a call for automation in banking. The best way to look at intelligent automation in the future is as a solution that can deliver improvements across the entire customer journey. Resulting in a significantly more efficient, dependable, and secure banking service. A number of banks such as Citigroup, Capital One, and JPMorgan Chase are already using technology like artificial intelligence to aid workers or have automated parts of tasks to eliminate jobs.

The automated banking processes are performed seamlessly without any errors. Being in the financial sector, banks are most required to be conscious and attentive about the data that they handle. The processing of data through automated banking reduces such risks and errors to zero. With time, the operating expenses are rising and the stringent regulations impose hefty regulatory fines. This results in slow processes and brand damage leading to poor customer experience. Hiring more people to find new solutions to manage operations while cutting down operational costs is not a reliable answer.

Nowadays, many banks have developed sophisticated mobile apps, making it easy to do banking anywhere with an internet connection. People prefer mobile banking because it allows them to rapidly deposit a check, make a purchase, send money to a buddy, or locate an ATM. If the accounts are kept at the same financial institution, transferring money between them takes virtually no time. Many types of bank accounts, including those with longer terms and more excellent interest rates, are available for online opening and closing by consumers. There are some specific regulations and limits for process automation when it comes to automation in the banking business, despite the undeniable advantages of bringing innovation on a large scale.

Platform Solutions

RPA in banking helps in generating full audit trails for each & every process, so as to reduce business risk as well as maintain high process compliance. Once correctly set up, banks and financial institutions can make their processes much faster, productive, and efficient. Customer onboarding in banks is a long, drawn-out process; primarily due to several documents requiring manual verification. RPA can make the process much easier by capturing the data from the KYC documents using the optical character recognition technique (OCR). This data can then be matched against the information provided by the customer in the form.

For business or retail accounts, banks offer business loan services, checking/savings accounts, debit and credit card processing, merchant services, and treasury services. When integrated with your accounting software via automated data synchronization, online banking facilitates real-time access to core financial data. This empowers you to make informed business decisions based on up-to-the-minute financial insights.

Automated data management in the banking industry is greatly aided by application programming interfaces. You may now devote your time to analysis rather than login into multiple bank application and manually aggregate all data into a spreadsheet. This is due to open banking APIs that aggregate your account balances, transaction histories, and other financial data in a unified location. Employees no longer have to spend as much time on tedious, repetitive jobs because of automation. We’re discussing tasks like analyzing budget reports, maintaining software, verifications for card approval, and keeping tabs on regulations. By automating routine procedures, businesses can free up workers to focus on more strategic and creative endeavors, such as developing individualized solutions to customers’ problems.

The banks have to ensure a streamlined omnichannel customer experience for their customers. Customers expect the financial institutions to keep a tab of all omnichannel interactions. They don’t want to repeat their query every time they’re talking to a new customer service agent.

It would be a big problem if the study suggested urgent corrective actions. This would also put the organization out of touch with the ground reality of its market. Therefore, leaders can generate new opportunities by capturing sales signals from existing customers and targeting them through email, WhatsApp, and social campaigns. Automating claims processing will be a critical step to achieving that goal.

Top 10 RPA use cases in banking

Automation is the advent and alertness of technology to provide and supply items and offerings with minimum human intervention. The implementation of automation technology, techniques, and procedures improves the efficiency, reliability, and/or pace of many duties that have been formerly completed with the aid of using humans. With the use of financial automation, ensuring that expense records are compliant with company regulations and preparing expense reports becomes easier. By automating the reimbursement process, it is possible to manage payments on a timely basis.

For optimal results, the RPA software can be trained with inputs from the compliance officers on the parts of each document which best fit each section of the report. Since RPA can be applied to a large number of business process automation projects, there are various well-defined use-cases in this space. KYC is a time-consuming process that banks need to perform for every customer. It can eat up to 1000 full-time equivalent (FTE) hours and $384 million per year to perform this process in a compliant manner. Alert investigation is also time-consuming, while up to 85% of daily alerts are false positives, and around 25% need to be reviewed by level-two senior analysts. With all the efforts, banks are losing €50 million per year on KYC compliance sanctions.

And as the financial sector evolves, IA will play an increasingly crucial role in helping banks stay competitive and meet their customers’ changing needs. The banking industry is under pressure as consumers shift their spending to tap into new technological frontiers. Banks are turning to artificial intelligence (AI) to provide more personalized experiences, drive customer engagement, and automation in banking industry reduce delivery costs. AI can help banks detect fraudulent activity, provide recommendations on products and services, and optimize back-office processes. By operationalizing and harnessing the power of AI, banks can remain competitive in the digital age. A study by Juniper Research reveals Robotic Process Automation (RPA) revenues in the banking industry will reach $1.2 billion by 2023.

First, it is crucial to identify the appropriate use cases such as repeatable and structured processes then prioritizing these based on alignment with business objectives. There are many examples of how intelligent automation is currently helping banks and how it can help banks stay competitive both today and in the future rife with evolving regulatory compliance. In the end, it boils down to how well intelligent automation is executed within the end-to-end customer and employee journey. In the event of missing, or incorrect, account numbers intelligent automation can be used to send alerts and/or responses.

• They can also freeze compromised accounts in seconds and streamline fraud investigations, among other abilities.
• With AI, robots can “learn” and make decisions based on scenarios they’ve encountered and evaluated in the past.
• Digital workflows facilitate real-time collaboration that unlocks productivity.
• Contact us to discover our platform and technology-agnostic approach to Robotic Process Automation Services that focuses on ensuring metrics improvement, savings, and ROI.
• By implementing banking automation, you can free up your team’s time and resources away from manual tasks to focus on more pressing matters.
• Whether your bank experiences surges in workload during peak periods or needs to streamline operations during quieter times, RPA can adapt to the changing demands of your business.

Now, field sales are online and genuinely remote due to sales automation platforms. With the mobility CRM app, managers can automatically set up daily plans and derive performance reports for their reps. Underwriting terms for a finance product have always been subjective to the customer and the underwriter. What surprised me was that the loan officer was aware of the details I shared.

Services

At Maruti Techlabs, we have worked on use cases ranging from new business, customer service, report automation, employee on-boarding, service desk automation and more. With a gamut of experience, we have established a highly structured approach to building and deploying RPA solutions. We work hand in hand with you to define an RPA roadmap, select the right tools, create a time boxed PoC, perform governance along with setting up the team and testing the solution before going live. One of the benefits of RPA in financial services is that it does not require any significant changes in infrastructure, due to its UI automation capabilities. The hardware and maintenance cost, further reduces in the case of cloud-based RPA. One of the other time-consuming processes at banks is credit card applications, which typically take several days for validating the customer information before approving the credit card.

Any data from the onboarding of the customer to the current period can be retrieved without any hassle. In the case of data entry, data from structured and unstructured loan documents can be entered automatically, moving further into loan processing and account opening systems. Automation in banking operations reduces the use of paper documents to a large extent and makes it more standardized and systematic. Even manually entered spreadsheets are prone to errors and there is a high chance of a decline in productivity.

Manual data reconciliation can be challenging, where the teams have to check the data on cashbooks, bank statements, etc. which may involve several banks. Bots can take up the job of verifying every entry against the bank data and other records. In case of discrepancies, the bot will immediately alert the members for intervention on the particular record.

Intuitive banking process workflow software like Cflow can be used for automating the banking workflow. Automation also helps in overcoming the risk and compliance issues that banks are facing due to major policy changes that occur frequently. Fourth, a growing number of financial organizations are turning to artificial intelligence systems to improve customer service. To retain consumers, banks have traditionally concentrated on providing a positive customer experience.

IA can also help identify potential money laundering schemes by detecting suspicious transactions or patterns that might indicate fraudulent activities. This ensures compliance with regulatory standards and saves innumerable costs by avoiding legal or reputational risks. With intelligent automation, your digital workforce can scale to handle data securely, developing new and more efficient ways to work entire processes and adapt to constant change. Credit risk management as a whole benefit from automation because it is now easier, more efficient, and less expensive to implement. For most medium-sized businesses, this is a great way to safeguard their accounts receivable for the foreseeable future.

Employees feel empowered with zero coding when they can generate simple workflows which are intuitive and seamless. Banking processes are made easier to assess and track with a sense of clarity with the help of streamlined workflows. Cflow is also one of the top software that enables integration with more than 1000 important business tools and aids in managing all the tasks. With the rise of numerous digital payment and finance companies that have made cash mobility just a click away, it has become a great challenge for traditional banking organizations to catch up to that advanced service. Most of the time banking experiences are hectic for the customers as well as the bankers.

Several banking functions like account opening, accounts payable, closure process, credit card processing, and loan processing, can be effectively automated for a seamless customer experience. Banking process automation enables improved productivity, superior customer engagement, and cost savings. Robotic Process Automation (RPA) has become increasingly important in the banking industry due to its ability to revolutionize the way banks operate.

According to The Financial Brand, 2018; 42% of consumers report that they now use their banking provider’s mobile app more now than they did 12 months ago. Almost every bank and credit union now have its own mobile application; however, just having a mobile banking doesn’t imply its being used to its full potential. Banks face challenges to keep their clients delighted, and provide a mobile banking experience that’s quick, easy to use, fully featured, secure, and routinely updated. For example, an automated finance system is able to monitor customer patterns, e.g. frequency of transactions.

Banking automation can improve client satisfaction beyond speed and efficiency. The elimination of routine, time-consuming chores that slow down processes and results are a significant benefit of automating operations. Tasks like examining loan applications manually are an example of such activities.

Banks can personalize customer service by creating a more human-like experience through intelligent chatbots that will make customers feel more valued and appreciated. Use Conditional Logic to only ask necessary questions, which improves the customer experience and creates a shorter form. Use Smart Lists to quickly manage long, evolving lists of field options across all your forms. This is great for listing branch locations, loan officers, loan offerings, and more. For easier form access and tracking, consider creating a Portal for all customer forms. This tool automates alerts, assigns deadlines, and tracks form completion.

Robotic process automation (RPA) collects data from various sources, checks its accuracy, organizes the data in a usable manner, and then notifies the appropriate parties at the appropriate times. This will aid decision-makers in developing plans more quickly to obtain an advantage. Companies may communicate with customers 24/7 with a customer care automation platform. Chatbots never get tired or bored, so their replies and assistance are always good. Businesses can save on overtime, maintenance, and other expenses by having their platforms operate outside of office hours.

However, today, organizations can invest in advanced reporting and analytics platforms to avoid this problem. For instance, with LeadSquared, you can set up dashboards/smart views to analyze the performance of their teams/products/regions, and much more in real-time. This helps leaders set up appropriate incentives, promote growth, and align your business with the market reality. Today, many companies use automated underwriting platforms to calculate loan terms and insurance premiums for their new/existing customers. These could be offers about the different range of cards, benefits of using the credit card, intimation of pre-approved cards, etc. With LeadSquared, we could bring together all our processes and teams into a single enterprise-wide solution.

Role-based security features are an option in RPA software, allowing users to grant access to only those functions for which they have given authority. In addition, to prevent unauthorized interference, all bot-accessible information, audits, and instructions are encrypted. You can keep track of every user and every action they took, as well as every task they completed, with the business RPA solutions. Robotic process automation (RPA) is poised to revolutionize the banking and finance industries.

As a business process automation expert, I can confidently state that the impact of automation in banking is nothing short of transformative. It is not just about digitizing manual tasks; it’s about reshaping the entire business model to deliver better value to customers and stakeholders. You can foun additiona information about ai customer service and artificial intelligence and NLP. Whether it is about customer service, fraud detection, risk management, or compliance, automation is making banking simpler, faster, and more efficient. In this article, we will explore the impact of automation in banking and how it is revolutionizing the financial landscape. The financial landscape is ever-evolving, and one of the critical drivers of this change is automation.

RPA in the banking industry serves as a useful tool to address the pressing demands of the banking sector and help them maximize their efficiency by reducing costs with the services-through-software model. A baby stroller and car seat company wanted to automate its accounts payable validation process. The company has branches at various locations, and each one sends its financial documents in its own unique format, which differs from other departments. It is tedious to process all this manually and validate if the provided information is consistent with the bank’s statements. A basic rule-driven robotic process automation is limited in what it can do. In such cases, automation can help comply with regulations and reduce risk.