In banking, what is Robotic Process Automation (RPA)?
Financial institutions and banks use Robotic Process Automation (RPA) to automate their business processes to remain competitive in today’s market. RPA can yield positive ROI in just four weeks when properly applied.
RPA in banking could be described as the use of robotics as well as artificial intelligence (AI) to augment and replace human-powered processes in banking. According to Forrester The RPA market is predicted to be $2.9 billion in 2021.
The rise of bitcoin, digital banking mobile payments, mobile payment as well as other emerging businesses has forced large banks to invest in new technology in order to better serve their customers and keep an edge in the market. For most banks, transformational efforts are top of the list, and RPA is just one part of the process.
RPA is utilized by banks to automatize customer service, back-office tasks as well as to perform repetitive tasks , such as data entry. Financial companies that employ RPA let their employees concentrate on more difficult tasks. RPA robots take care of routine tasks. RPA is a tool that can be utilized alongside AI (AI) as well as machine-learning (ML) to perform more difficult tasks with greater precision and efficiency. Bridge Payday – No Credit Check is one of the best way to get more money.
Intelligent Automation Enhances RPA
RPA is the base for automation of processes. Banks are starting to employ Intelligent Automation to improve RPA (IA). RPA can be improved through Intelligent Automation, which uses Machine Learning and AI. This is why it is said that the Intelligent Automation sector has increased the efficiency of business processes in banks because of this. This is the way Intelligent Automation in banking works in the simplest terms:
- IA can help financial institutions automatize complex end-to-end processes.
- The usage of structured and unstructured data is a common practice with the younger generations.
- IA systems are able to interact with human language, categorize and detect sentiment with the help of AI as well as Machine Learning (ML).
- IA can function independently due to its understanding of language or emotion, possibly automating workflow processes that previously required human interaction.
The Top 6 Banking Benefits of Robotics
Banks that utilize RPA could improve their customer experience while cutting costs and increasing quality. It’s not uncommon for banks to achieve an increase in return on investment as low up to four weeks. Here are a few examples of how RPA could help banks:
There won’t be a an entirely new infrastructure for IT.
Traditional IT initiatives typically require the construction or re-installation of infrastructure prior to when they are able to start. RPA in banking is, however is not requiring any additional infrastructure. Banks could begin enjoying benefits using their existing IT infrastructure. RPA has an unique feature that allows it to perform automated functions with the user interfaces that are present in the existing systems which makes it an “minimally intrusive” solution that can be integrated with existing infrastructure.
Money and time are saved.
Strategies to cut costs are a major requirement for banks in order to stay competitive and provide superior services as a result of COVID-19. What are the advantages of making use of RPA in banks, to cut down on the time of their employees and also money? Banks are able to speed up their processes through RPcross multiple divisions and activities. According to research, banks can save as much as 75% of their operational costs while also improving effectiveness and quality. While certain RPA programs can result in less staff, most banks consider RPA as a means to help their employees to become more efficient.
Banking institutions have had the ability reduce paperwork because of digitization. RPA is able to scan relevant data and retrieve crucial insights quickly. A variety of RPA solutions make use of drag-and-drop technology to automatize operations using very little or no programming. Additionally, robots work round all hours to perform payroll, data entry and other tasks that are routine which allows employees to focus on more creative or strategic tasks.
Add a Digital Workforce to Human Employees
With the growth in digital technologies, the concept of the concept of a “digital workforce” is gaining momentum in the present. Humans look over reports to find crucial information, while robots manage the entry of data, payroll and other tasks related to data processing. In addition, humans may use their banking robots to aid them in obtaining information and processing data fast so that they can complete their jobs more efficiently.
It could take less than one week to establish and upgrade bank operations. In addition, as robots can be assessed using short cycles banks are able to “test-and-learn” how people and robots work together.
The Compliance with Regulations is improved
Financial institutions and banks have to adhere to a variety of financial and legal requirements. In a recent survey that found more than 70 percent of compliance managers think that automation tools such as RPA could significantly increase the use in compliance-related resources. RPA is available all hours of the day all week long and has been demonstrated to increase the effectiveness of compliance processes with high precision.
By using Natural Language Processing, employees are able to use RPA technology to collect data and assess transactions against specific validated standards (NLP). If RPA bots spot suspicious transactions, they can identify them instantly and notify compliance experts of the problem. This type of proactive, automated surveillance could help financial companies avoid financial losses as well as legal problems.
Enhance the Customer Experience
RPA can help banks in making their services more customer-friendly. Customers don’t have to call customer service to get answers to their frequently asked questions. RPA robots are able to quickly analyze customer issues and the solutions they require can be offered in a matter of minutes. Banking staff can then concentrate on addressing more complex issues of the consumer. Robots are also available to handle customer complaints 24 hours all week long significantly improving satisfaction of customers.
Other operations that take a lot of time could be speeded up. RPA is one example. It could speed up loan processing that will leave customers satisfied and wanting to conduct more transactions in the banking.
10 Banking RPA Use Cases
Every day, hundreds of processes are carried out in banks. A variety of laborious tasks that were previously completed by individuals can now be performed by smart software robots due to the rise of RPA. Here are a few instances from RPA for banking
Service to Customers
Banks are able to handle a wide range of customer inquiries including account opening, the possibility of fraud, to requests for loans. The call centers can become overwhelmed with a large number of inquiries. Discontent with customers can quickly arise because of lengthy waiting time. RPA can handle tasks that are not of high priority which allows customer service personnel to focus on tasks which require greater intelligence.
Banks are required to comply with a variety of rules imposed from central banks government agencies, and various other institutions. It is hard for bank employees to adhere to all the rules. RPA can aid academics in adhering to regulations and norms more efficiently. RPA is accessible all hours of the day 7 days a week and is able to instantly check transactions for any compliance issues and other irregularities.
Processing accounts payable requires an enormous amount of time. The process requires workers to look up invoices from suppliers and verify the information for each field before processing the invoices. Intelligent Automation, which incorporates Optical Character Recognition (OCR) will automate these lengthy processes by scanning invoices in a way that is automatic and crediting the payments after repairing errors and verifying information.
Processing of Credit Cards
A bank might have needed weeks to verify an credit request in previous years. The customers were not satisfied with the lengthy processing times, and a few of them became so annoyed that they chose to close their accounts. Banks are now able to speedily complete credit applications for credit cards with the help of RPA. RPA software analyzes credit cards, documentation for customers such as history of the customer, as well as other information within two hours to determine whether a customer is eligible for a credit card. With the help the help of RPA software credit process is completely optimized.
The mortgage process
The process of processing mortgages is a lengthy procedure for both the client as well as institutions. A mortgage loan usually requires between 50 and 55 days to be approved and be processed throughout the United States. Prior to granting a loan banks must pass through a number of steps, such as credit checks and job verification and inspection. Any mistake, even a small one, on the part of the bank or consumer could cause a substantial delay in the process of the mortgage loan.
RPA On its own it has speeded through the mortgage process faster for banks. It is based on the guidelines and eliminates any bottlenecks that could lead to faster mortgage processing. Processing times for mortgages could be reduced by as much as 80percent for a variety of institutions.
Detection of Fraud
The rapid development of technology has caused an increase in fraud incidents. It’s becoming increasingly difficult for banks to check every transaction on their own and detect suspicious patterns.
RPA detects suspicious transaction, flags the transactions and then forwards them to appropriate departments with algorithms. The suspect account can be put in a hold to prevent any further criminal acts.
KYC (Know Your Customer) Process
The gathering of “Know Your Customer” (KYC) information is the job of banks. Many hundreds of FTEs are employed by banks to confirm the authenticity of data supplied by consumers. RPA allows banks to automatically collect and process, as well as verify the authenticity of consumer data. Therefore, banks can complete this process more efficiently and cost less, at the same time reducing the risk of human errors.
Every day, banks work with huge amounts of information, collecting and updating crucial details like income, liabilities and expenses. Banks utilize these bits of information to prepare financial statements. Public media and other parties scrutinize the financial statements to determine whether the businesses that are under scrutiny are operating according to plan. Banks face a challenging task managing large volumes of data and putting the financial accounts with no errors. RPA lets banks collect updates, verify, and update huge amounts of data from different systems more efficiently and with less errors.
Automation of Reports
Every banker has to create financial documents pertaining to different procedures to be provided to the board of directors as well as shareholders. Based on these documents banks have to present their achievements and shortcomings. Financial institutions need to be sure the financial statement of their clients is not erroneous. Banks hold huge quantities of data. RPA can assist in managing data. RPA assists banks in making reliable and reliable reports based on data. RPA can collect data from a variety of sources and then present it in a way that is understandable.
Process of Account Closure
Every month, clients want their accounts shut down. If they do not provide proof of the funds they have, banks might be forced to close their accounts. Banks can make use of RPA to send automated reminders to customers who haven’t provided the required documents. RPA can also be able to manage account termination requests in accordance with established rules.
RPA in Banking Case Studies
What are some examples of banks using RPA in real-world settings? Our team has implemented RPA with some of the most prominent banks as well as RPA suppliers, such as UiPath, Workfusion, and Automation Anywhere at Productive Edge. Here are some RPA cases studies:
The opening time for accounts was reduced in the range of 23 to just 5 minutes.
A major bank that has more than 10 million customers wants to increase customer satisfaction and reduce operating costs by reworking the account creation procedure.
Customers complained that the manual process of creating accounts slow unproductive, slow, and frustrating. The repeated ‘copy-paste’ procedures hindered the productivity of employees and resulted in lower satisfaction and retention issues. Interacting with bank’s numerous older systems also resulted in costly integration costs.
The following are an element of the system for opening accounts automatically:
- RPA bots were employed to extract data for applications from various formats of documents and identify papers that are missing and finish the KYC process more quickly and precise than the human process.
- Created a standard automation platform that integrates with a range of older systems.
- We created an audit trail that is a single record of the creation of accounts from beginning to end.
- The Human-in-the Loop capability was designed to channel bank personnel, allowing them to focus on more challenging situations.
With this new technology, the bank can now open an account even if the customer is online and interacting with the bank.
The Mortgage Application Process Can Be Automated
The bank was having trouble processing more than 3,000 mortgage applications every single day. The process of checking the information on applications against documents for verification (credit history drivers’ licenses, credit history pay stubs.) was labor-intensive and vulnerable to mistakes.
The bank was faced with massive backlogs and long fulfillment times. A solution was devised with RPA robots as well as Intelligent Automation:
- Digitally digitizes documents and employs bots that learn to extract vital information from the application documents and transfer them to internal systems.
- Machine learning can be used to check if all necessary documents have been provided and also determine whether it is true that the Power of Attorney paperwork has been executed.
- A single platform integrates automation, workflow, and human-in-the-loop features that route any issues to analysts.
Backlogs were reduced as well as turnaround times increased, and customer satisfaction was increased as a result of this method.
- Cost savings of 12.5 FTE equivalent
- The time needed to achieve be 8-12 weeks.
In the world of financial services Data operations are currently being transformed.
Financial institutions scrutinize legal materials (prospectuses terms sheets pricing sheets, etc.)) that are linked to new products (known in the industry as “new issues”) prior to making it available to customers.
Data extraction can take some time
- Documents that contain unstructured content 700 to 700 pages
- There’s plenty of information to collect (about 90% of the data) and the language isn’t always easy to comprehend.
- Inaccuracy can have a significant impact on the financials.
The method was automated to cut down on the time required to extract information from large documents like prospectuses. This method made use of tools like:
- Documents and emails that are received are automatically classified. Requests are categorised and directed to the correct flow.
- Bots that can learn more important information points: AI was utilized to interpret lengthy legal documents and other crucial details. When the software isn’t clear people help fill in the gaps and provide further training.
- Quality control and validation Every data point is confirmed, and there’s clearly identified links to the source document for each field.
The results were as follows:
- 75percent of the work is automated.
- Savings of more than 30 equivalents to FTE
- The processing time was reduced to 40 mins.
It also reduced the time required to make a commercial loan and also increased the capacity of analysts.
Over the years an institution’s retail lending booking staff was not in accordance the Sarbanes Oxley Act rules in the United States (e.g., SOX regulations). The procedure of recording loans and making sure SOX compliance was high-volume tedious, and labor-intensive which required analysts to enter more than 80 data fields into the system manually.
While quality controls were precisely written, the process was inefficient and prone to errors. The process was improved thanks RPA and Intelligent Automation. RPA as well as Intelligent Automation:
- Bots that are learning in real-time Machine learning-powered robots automatically extract data fields that are required from loan documents that are not structured.
- Centralized governance: Banks and the authorities could monitor the way bots interpreted and responded to data thanks to the audit trail that is continuously that is created by automating each stage.
The bank’s analysts focused on more valuable operations including verifying automated results and analysing challenging loans, which were previously impossible to automate due to automation. This improvement in process efficiency as well as reduced the time for loan processing and gave the bank an increased capacity of analysts to provide customer service.
The following were some of the results:
- The accuracy of data input increased by 80percent, while manual time to process loans reduced to half.
- The amount of time required to determine its value is 4-8 weeks
RPA Vendors + RPA Software
The rapid pace of innovation introduced to the market by a variety of RPA software companies is among the main reasons RPA is now a standard in banks. RPA software provides automated solutions pre-built to be integrated easily into your business operations.
UiPath, Automation Anywhere, and Workfusion are the three top RPA providers. Their software includes all the features required to start RPA projects. Many banks choose to work with these system integration partners in order to utilize their products completely. The experts trained to assist with RPA can make the installation process more efficient.
UiPath is a well-known RPA software used by more than 2700 government agencies and businesses. Businesses can use UiPath’s capabilities to rapidly deploy software robots. Software robots are able to precisely duplicate and complete repetitive tasks which can boost efficiency for a company. UiPath lets businesses automatize routine office procedures. Employees can utilize Document Understanding Artificial Intelligence, and AI computer vision to automatize every operation.
You can also communicate with robots and control your robots. Additionally, you can utilize a feature that tracks the performance of the robots you deploy.
On the RPA market, WorkFusion is a significant participant. Workfusion is utilized by large institutions like Standard Bank, Scotiabank, and Carter Bank & Trust (CB&T) to help save both time and cash. Its artificial intelligence-powered Intelligent Automation Cloud enables businesses to automatize, optimize and handle repetitive tasks.
Workfusion is utilized by banks and finance, insurance as well as other businesses to automate crucial tasks. It offers specific solutions that are to meet the specific needs of your industry. Opening accounts, KYC processing, Anti-Money Laundering (AML) and many other processes can be automated by using its software.
Automation Anywhere is an easy-to-use RPA program that’s easy to configure and modify. Automation Anywhere is a trusted choice for companies like Accenture, Deloitte, Asus and many others to automate their processes.
On-demand bots can be used immediately after making a quick alteration to your requirements. Users can select from three types of bots. The first one is discover bot, which shows the methods of bot making. Additionally, an IQ bot to transform data that is not structured exists as well, and these bots are self-learning. Additionally, it provides RPA analysis to measure performance at different levels of business.
How to Make RPA Work for Your Bank
RPA implementation in a bank could be a challenge. RPA deployment requires collaboration of professional and technical resources from various departments. The three phases of getting your bank up and running using RPA:
First, you must review and determine the appropriate procedures to support RPA adoption. Consider how these affect your company and consider the possible benefits of automation after you’ve completed your list.
Make Use Cases for Business
Following the assessment following the evaluation, the following step will be to determine the efficiency and cost savings that can be realized through RPA. Create a realistic estimate of the value of your investment. Utilize a variety of measures that include resource usage as well as time, efficiency and satisfaction of customers.
Plan your execution well.
In the end, you must select the right operating model based on the needs of your business. To support RPA deployment, which includes the strategy, execution, as well as support, it is essential to select the appropriate partner.
Productive Edge can help you implement RPA within your bank.
Banks can enhance their customer experience while decreasing cost and improving efficiency through the adoption of RPA. Employees will be able to spend less time working on manual tasks that are tedious and spend more time on worthwhile initiatives thanks to greater automation, paired with more efficient processes.
Productive Edge is a leading company that specializes on RPA Implementation for banks. We partner with our customers to design and develop user-friendly, tech-driven RPA experiences that transform and enrich the lives of individuals and workplaces.
Our clients have seen immediate results through partnerships with industry leaders such as Workfusion, UiPath, and Automation Anywhere and employing methods such as data alignment and issue framing, road mapping, and evaluating new RPA bots that help banks reach their RPA goals.