5 RPA Use Cases in Banking Challenges and Uses of RPA in Banking

Automated systems can help identify and manage financial risks more effectively, reducing the likelihood of fraud or other losses. By automating critical operational processes across financial reporting, community banking, chargebacks, deposit operations etc for leading UK bank. You want to offer faster service but must also complete due diligence processes to stay compliant. Using automation to create a cybersecurity framework and identity protection protocols can help differentiate your bank and potentially increase revenue.

Rising operating expenses, compounded by regulatory fines along with fierce regulatory requirements slow processes down as well as influence and result in a poor customer experience. Throwing more people at the problem of finding new and better ways to manage compliance, while cutting down operational expenses is definitely not the answer. Over the last decade, banks and financial institutions are reported to have spent more than $321 billion on compliance operations as well as fines. Banks are estimated to disburse nearly $270 billion yearly, just on compliance operations. Almost more than 10% of a bank’s operating cost is attributed to compliance costs.

Process templates

From digital forms to credit analysis, automation shortens the months-long processing time. Automation speeds up the verification of digital forms and documents provided by customers. A smooth, error-free procedure helps ensure that clients get their funds on time. It is no secret that the banking industry has battled to evolve with the times and stay up with technological advances. Adopting technologies has helped banks provide the best customer experience while remaining competitive in the saturated banking market. In addition, the pandemic has accelerated company measures to react to employee and customer demands, making digital solutions the future of financial services.

With scorching competition within the banking industry, banks are continuously striving hard to provide exceptional customer service to their customers. BPA has enabled banks to provide remarkable service and customer experience. For example, with automated processes, banks are now capable of responding thousands of queries everyday while offering the best possible solutions at the earliest. Finance and Banking industries are amongst the crucial when it comes to economy, and most importantly both of these factors are predominantly driven by sensitive data and information. Enormous volumes of data and intense regulations within the marketplace made it mandatory for these industries to embark upon the digitization journey, to sustain their viability and ensure competitiveness.

Regulatory Compliance

In addition to RPA, banks can also use technologies like optical character recognition (OCR) and intelligent document processing (IDP) to digitize physical mail and distribute it to remote teams. During the pandemic, Swiss banks like UBS used credit robots to support the credit processing staff in approving requests. The support from robots helped UBS process over 24,000 applications in 24-hour operating mode. For example, banks have conventionally required staff to check KYC documents manually. However, banking automation helps automatically scan and store KYC documents without manual intervention. Along with the undoubtful benefits of introducing invention on a wide scale, enforcing RPA in the banking sector demands some legal conditions and constraints for process automation.

• There are hundreds of RPA use cases specific to dozens of industries and departments, it’s difficult to implement them immediately.
• Radius Financial Group relied on RPA in banking to accelerate mortgage processing.
• Mobile banking is a newer form of automated banking that allows customers to conduct financial transactions using their mobile devices.
• Itexus works with central securities depositories (CSDs), investment banks, custodians and other trade players developing systems for trade validation, confirmation, settlement, reporting, and accounting operations.
• This includes registration and revaluation of fund accounting, as well as generating annual customer reports.
• As technology continues to evolve, we can expect even more changes and improvements in the way banks, saccos and microfinance operate – all thanks to automation.

As a proud RPA technology partner with Nintex, our automation technologists have the profound technology expertise to help businesses manage, automate, and optimize business processes more efficiently than ever. Robotic process automation (RPA) is being adopted by banks and financial institutions to sustain cutthroat market competition. RPA is a combination of robotics and artificial intelligence to replace or augment human operations in banking. A Forrester study predicts that the RPA market is expected to cross $2.9 billion by the year 2021. Banks used to manually construct and manage their accounting and loan transaction processing before computerized systems and the internet. Banking automation now allows for a more efficient process for processing loans, completing banking duties like internet access, and handling inter-bank transactions.

Fight Financial Crime

Like many other old multinational financial institutions, CGD realized that it needed to catch up with the digital transformation, but struggled to do so due to the inflexibility of its legacy systems. RPA bots can automatically gather data from disparate sources, including federal bodies, government websites, and news outlets, and input this information into a bank’s internal system following data structuring guidelines. A basic rule-driven robotic process automation is limited in what it can do. Your builders will be the key to unlocking your organization’s full automation potential as they begin to create workflows and weave them into internal processes. You’ll see your team spend less time switching between tools as well since Next Matter can integrate with both external and internal tools.

By minimizing human involvement in many processes, RPA implementation allows banks to cut operational costs by 30% on average. Importantly, while the focus of this RPA strategy was to reduce costs, automation significantly improved the quality of KAS Bank’s business processes. When it comes to RPA implementation in such a big organization with many departments, establishing an RPA center of excellence (CoE) is the right choice. To prove RPA feasibility, after creating the CoE, CGD started with the automation of simple back-office tasks. Then, as employees deepened their understanding of the technology and more stakeholders bought in, the bank gradually expanded the number of use cases. As a result, in two years, RPA helped CGD to streamline over 110 processes and save around 370,000 employee hours.

eBook: Intelligent Automation in Finance and Accounting

Automation is used in processing online loan applications and customer contracts. Robots pre-process loan applications before the customer agents check them, which quickens the application processing time. With the customer contracts automation, the robot retrieves the contracts written by customers online, and then transfers and stores them in the banking system.

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. Like CGD, KAS Bank carefully explored RPA use cases, conducted multiple proofs of concepts, and only then engaged in the enterprise-wide implementation. This calculated approach helped the bank to reveal various IT bottlenecks and discover the most value-adding RPA use cases. With five RPA bots, the bank automated 20 financial business processes, including treasure operations, obligation payments, internal invoicing, and calculating and booking. Rather than spending valuable time gathering data, employees can apply their cognitive abilities where they are truly needed.

Improve banking experience with back-office automation

Through AI and Intelligence automation, we’re qualified to train these machines to learn the habits of customers and give better service over time. Branch automation can also streamline routine transactions, giving human tellers more time to focus on helping customers with complex needs. This leads to a faster, more pleasant and more satisfying experience for both teller and customer, as well as reducing inconvenience for other customers waiting to speak to the teller. Mortgage loan systems have been amplified by the technological transformations, but especially by the process automation.

• A multinational banking and financial services institution headquartered in Singapore wanted to undergo large-scale digital transformation to drive up process efficiencies for increased productivity and revenue enablement.
• Companies in the banking and financial industries often create a team of experienced individuals familiar with the entire organization to manage digital acceleration.
• As a part of compliance, banks have to prepare a report about their various processes and present it to the board and other stakeholders to show the performance of the bank.
• Unlike humans, RPA bots never get tired and perform tasks with the same accuracy regardless of the task complexity, which reduces the probability of errors.
• Automation helps banks streamline treasury operations by increasing productivity for front office traders, enabling better risk management, and improving customer experience.
• We partner with our clients to automate their operations model, overcome staffing shortages and hiring challenges, and transform legacy processes to improve bank efficiency.

Applying intelligent automation across the trade finance process from digitalization, sanctions screening and fraud checks, to customer communications, reporting, and audit. To improve ESG disclosures and investment decisions, financial services firms need to develop an effective data management strategy with these four components. Get your business future-ready with industry-aligned IT and process automation solutions. Implementing the RPA solution in banking generally begins with the identification of accurate and feasible processes.

Build a New Operating Model for Financial Services with Intelligent Automation

For more complex scenarios where a system needs to learn and adjust over time., Itexus deploys cognitive Intelligent Process Automation (IPA) solutions. Not only is this a time-consuming process when done manually, but it also leaves room for error with data-keying across systems. Bots can recognize indistinguishable entries, synthesize data stored in different formats across systems, and harmonize accounts directly.

Low interest rates, the cost of digital transformation and increased competition are all squeezing profitability. Many financial institutions are prioritizing projects that drive a fast return on investment in areas such as banking operations, remote working, and customer experience. While the general digitization of banking services has accelerated the issuance of credit cards, the process still requires human support. In most cases, an RPA bot can approve credit card applications by itself, substantially quickening the process and increasing customer satisfaction. An RPA bot can access various systems to verify applicants’ identity, perform background checks, and approve, disapprove, or, in rare cases, direct customers to a human employee. Essentially, the loan processing volume is capped by the number of employees dedicated to the task.

Automation of Mortgage Loan Processes

Indeed though RPA was developed in the 2000s, it positively started entering the market only after 2015. That’s why the technology is fairly youthful in terms of legal regulations it requires to be enforced – the ones specifically issued by the central banks, the government, and other parties. The introduction of fintech (finance tech) has disrupted financial services with its superior accessibility and innovation. Traditional banking services are scrambling to adjust and retain their hold, metadialog.com with gig economy, cryptocurrency, and blockchain further testing the mettle of the industry. The scope of streamlining key institutional healthcare processes goes beyond just eliminating paperwork or reducing the amount of time it takes to process, file, or store a form. By supporting your teams, bridging system gaps and assisting patients, our Emerging Technology Pods can deliver high-impact solutions for provider groups, treatment networks, and third-party revenue cycle managers.

An excellent example of this is global banks using robots in their account opening process to extract information from input forms and subsequently feeding it into different host applications. Unlike humans, RPA bots never get tired and perform tasks with the same accuracy regardless of the task complexity, which reduces the probability of errors. The ever-strengthening regulatory scrutiny around KYC and rising compliance costs, encourages banks to turn to automation. In many cases, banks are reluctant toward KYC automation, because the cost of revamping a well-established web of many connected, yet disparate systems is often unjustifiable. Regardless of the industry, today’s consumers expect things faster than ever. With the exponential rate of technological advancements propelling the speed of service, this trend will hardly subside.