Why Banks Should Bank on Robotic Process Automation - Android

It is undeniable that banks and financial institutions are constantly undergoing rapid evolution to deliver the best customer experience and… Read More

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It is undeniable that banks and financial institutions are constantly undergoing rapid evolution to deliver the best customer experience and maintain their edge in this ever so competitive financial landscape.

Boosting operational efficiency and optimizing resources has become more important than ever before for banks, thanks to the rise in virtual banking solutions. Moreover, the dearth of skilled resources, rising personnel costs, and the need for process improvements have driven the banking and finance sector to adopt robotic process automation (RPA).

RPA in the finance industry has been instrumental in overcoming the most pressing challenges of maximizing efficiency and cost reduction in the banking sector. This exponential growth of RPA in financial services can be highlighted by the fact that RPA is estimated to be a whopping $2.9 billion industry by 2022.

The banking industry, as we know it, involves a lot of manual and repetitive work. The primary aim of RPA is to assist the banks in managing these tasks, enabling the staff to focus on other higher-value work. Even in Pakistan, forward-thinking banking and insurance institutions are increasingly incorporating RPA in their processes.

RPA Use-Cases in Banking

While there RPA can be applied to a large number of use-cases in the banking sector, here are a few where RPA can unlock unprecedented value:

Account Opening

RPA turns the cumbersome and repetitive process of account opening into a simpler, quicker, and accurate affair. Software robots – the basic unit of RPA – are being employed by global banks in their account opening processes to extract information from input forms and subsequently feeding it into different host applications.

This results in the elimination of error-prone, time-consuming, manual data entry process, and a steep decrease in the turnaround time while maintaining complete accuracy and reduced costs.

Report Generation

Generating suspicious activity reports or SARs is a usual requirement for banks and financial institutions to ensure compliance. The process is extremely repetitive and time-consuming, as it involves compliance officers to read all the reports and manually fill in all the necessary details in the SAR form.

RPA infused with natural language processing capabilities can read through these lengthy documents, extract, and input the required information in the SAR, tremendously reducing the operational costs and the time taken to perform the task.

Anti-Money Laundering (AML) and Know Your Customer (KYC) Process

In banking, KYC rules are the mandatory steps that institutions must take to verify their customers’ identities. AML operates on a broader level; they are measures institutions take to combat money laundering and other malicious activities.

AML and KYC are both data-intensive processes, making them extremely suitable for RPA as it saves both time and cost – be it automating the manual processes or catching suspicious transactions.

Audit & Compliance

Audits are an integral element for a bank to ensure compliance and all the required reports need to be furnished to the auditors. RPA bots are used to find all the customer accounts’ year-end balances and return the audit to the auditor in a Word document, thereby dramatically reducing the average time of an extensive audit from several days to mere minutes.

Additionally, RPA can also help in detecting anomalies by conducting QA tests on data that is error-prone or includes monetary payment. This can significantly reduce errors in important payment processes and improve customer satisfaction. Furthermore, RPA can scan regulatory announcements for future changes as and when new information is released.

This can reduce the time spent in identifying the regulations and decrease the possibility of noncompliance fines due to errors.

Loan Processing

Loan processing is widely considered to be a tediously slow and repetitive process that has already been automated by banks to a certain extent. However, RPA further accelerates the process by bringing the processing times down to an astounding 10-15 minutes.

RPA also enables easy automation of various crucial tasks in the mortgage lending process, including loan initiation, document processing, financial comparisons, and quality control. As a result, loans can be approved much faster, resulting in enhanced customer satisfaction.

In addition to the above, RPA’s flexibility, scalability, and broad scope of the implementation in the banking industry unlock tremendous opportunities to automate other critical tasks such as customer service, credit card processing, account closures, account statement generation, password change requests, and more.

Systems Limited, Pakistan’s premier global technology company, has been at the forefront of providing cutting-edge RPA services to the banking industry. Learn how the company significantly enhanced Pakistan’s fifth-largest commercial bank’s operational efficiency while reducing overall costs through RPA.

Conclusion

If implemented correctly, RPA can be incredibly transformative for the banking sector by enhancing productivity, increasing accuracy, and significantly reducing process turnaround times. Partnering with the right technology provider is critical for a successful implementation. Not only does this bring the intended results, but makes the journey to next-gen automation and beyond much smoother.

If this is the journey that you wish to embark on, contact Systems Limited.

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