Business Process Automation in Banking & Finance Industry

Banking is an extremely competitive industry, which is facing unprecedented challenges in staying profitable and successful. This situation demands banks to focus on cost-efficiency, increased productivity, and 24 x 7 x 365 lean and agile operations to stay competitive. As such, financial systems are witnessing dramatic transformation through the deployment of robotic process automation (RPA) in banking, which helps banks tailor their operations to a rapidly evolving market. A study by Juniper Research reveals Robotic Process Automation (RPA) revenues in the banking industry will reach $1.2 billion by 2023. Intelligent automation tools can help banks and financial services companies to transform manual, data-intensive, operations while meeting stringent and ever-changing regulatory requirements.

AI and NLP-enabled intelligent bots can automate these back-office processes involving unstructured data and legacy systems with minimal human intervention. Hyperautomation can help financial institutions deal with these pressures by reducing costs, increasing productivity, enabling a better customer experience, and ensuring regulatory compliance. Banking and financial services run a multitude of functions, both in the background and foreground. The face of banking and financial services has evolved over the past few decades. The banking industry is among the top consumers of information technology and services. As per a Gartner report, Global IT spending in the Banking and Financial Services industry is estimated to reach $742 billion by 2024.

Catching minor mistakes prevents them from compounding into inaccuracies further along. Digital technologies have no doubt made banks’ front-end operations much easier. The convenience of uploading a check via a banking app rather than visiting a brick-and-mortar location has increased the accessibility and ease for consumers. RPA uses an ‘if-then’ method to identify potential frauds and flag them to the concerned department. For example, if there are multiple transactions made within a short time, then the RPA identifies the account and flags it for a potential threat.

Credit Card Application Workflow

When RPA bots are deployed to complete mundane and repetitive processes, it allows human employees to focus on higher-value tasks. This can help drive employee engagement and workplace satisfaction as people are able to spend time on more interesting, high-level work. The implementation of RPA eliminates or dramatically reduces the need for human involvement in repetitive and mundane tasks. This can greatly decrease the likelihood of errors, as well as reduce subjectivity and unconscious bias, the likes of which could contribute to skewed decision making or increase risk.

According to the World Economic Forum, the financial services industry will need an additional $4.8 trillion in digital technology to support the financial sector in the coming decade. By using intelligent process automation, a bank is able to improve the customer experience. A customer is able to carry out transactions through their own devices, e.g., smartphone, tablet, or computer. Intelligent automation allows customers to verify KYC, validate documents, ensure compliance, approve loan documents and more from the comfort of their home, anytime of day without need for a bank agent.

How Intelligent Automation Supports Banking

Apathy in driving future digital transformation and misleading theories about the risks of doing so will only keep everyone in the dark ages (as it were). A system can relay output to another system through an API, enabling end-to-end process automation. Reskilling employees allows them to use automation technologies effectively, making their job easier. 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.

Banks, lenders, and other financial institutions may collaborate with different industries to expand the scope of their products and services. Welcome to the exciting world of process automation in the financial sector! This article will explore how automation is revolutionizing banking and finance, particularly the transformative role of BPMS (Business Process Management Suite) tools.

App Development Process

There were also new challenges in the form of complexities of having multiple systems accessing customer information. Will advances in robotics, artificial intelligence, and quantum computing make machines so smart and efficient that they can replace humans in many roles today? The answer, if you believe the assertions of many experts, seems like a yes. Feel free to check our article on intelligent automation strategy for more.

While these advancements bring interruption, they don’t cause obliteration. These banks empower the two-layered influence on their business; Customer, right off the bat, Experience and furthermore, Cost Efficiency, which is the reason robotization is being executed moderately quicker. The rising utilization of Cloud figuring is acquiring prevalence because of the speed at which both the AI and Big-information arrangements can be united for organizations. Utilization of cell phones across all segments of shoppers has urged administrative centers to investigate choices to get Device autonomy to their clients along with for staff individuals. Consistence hazard can be supposed to be a potential for material misfortunes and openings that emerge from resistance.

We have developed a data wrapper that allows you to get the most out of your technology investment by integrating with the apps you currently use. Filter and access documents in seconds with advanced filtering options and version control. An investment portfolio analysis report details the current investments’ performance and suggests new investments based on the report’s findings. The report needs to include a thorough analysis of the client’s investment profile.

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. The requisite legal restrictions established by the government, central banks, and other parties are also relatively new. Thus, as per Institute for Development and Communication (IDC), nearly 44 trillion gigabytes of data were generated in 2020. The generation of such a massive amount of data in the financial sector is anticipated to fuel the demand for AI and automation in banking. AI-led chatbots provide intelligent services based on your customers’ profiles and needs enabling agents to focus on higher-value outcomes.

• Banking process automation enables improved productivity, superior customer engagement, and cost savings.
• In this article, we will use the RPA term to imply both regular and intelligent process automation.
• To learn more about Genesis Systems, their close challenges, and how Adra helped their accounting teams evolve to a more modern process, download the case study.
• Legacy systems can be connected entirely, while unstructured data can be organized too.
• Robots have a high degree of flexibility in terms of operational setup, and they are also capable of running third-party software in its entirety.

With the rise of Blockchain technology, banking firms are implementing risk management methods that make it harder for hackers to steal sensitive data like customers’ bank account numbers. Current asset transactions are being replicated on the Blockchain as part of industry trials of the technology. It’s beneficial for cutting waste, beefing up on safety, completing deals more quickly, and saving cash. At times, even the most careful worker will accidentally enter the erroneous number.

Digital Transformation, a digital-first mindset, emphasizes on reframing the way banking and financial organizations work to deliver new value propositions through leveraging RPA, AI and other advanced automation technologies. Digital transformation allows banks and financial services companies to integrate new technology solutions, bringing workflows and departments together to achieve performance gains. Reduced manual efforts, improved process turnaround time, an ability to manage end-to-end processes with minimal human involvement are some of the most valued benefits of adopting digital transformation. The banking and financial services industry provides multidimensional services, with several processes running at the front and back end.

When you automate these tasks, employees find work more fulfilling and are generally happier since they can focus on what they do best. By making faster and smarter decisions, you’ll be able to respond to customers’ fast-evolving needs with speed and precision. AI and ML algorithms can use data to provide deep insights into your client’s preferences, needs, and behavior patterns. RPA does it more accurately and tirelessly—software robots don’t need eight hours of sleep or coffee breaks. Based in Tulsa, Oklahoma, Managed Outsource Solutions (MOS) looks forward to discussing your challenges with you.

Instead of several days or weeks being allocated to a portion of the financial close, the turnaround for reconciliations is accelerated, keeping all financial employees on top of the close. The process is so crucial that it involves at least 150 to even 1,000+ FTEs to perform checks on the customer, and according to Thomson Reuters, some banks spend at least US $384 million per year on KYC compliance. Considering the cost and resources involved in the process, banks have now started using RPA to collect customer data, screen it, and validate it. This helps the banks to complete the process in a shorter duration with minimal errors and staff. The process took time as the application had to go through various scrutiny checks such as credit checks, employment verification, and inspection before approval.

Earlier, it took weeks for a bank to validate and approve the credit card application of a customer. The long waiting period resulted in customer dissatisfaction, sometimes even leading to a customer cancelling the request. However, with the help of RPA, banks are now able to speed up the process of dispatching the credit cards. It takes just a few hours for RPA software to gather documents of the customer, make credit checks and background checks, and take a decision based on set parameters on whether the customer is eligible for a credit card or not. With so many compliance rules, it becomes an arduous task for the banks to comply with each of them.

A minor error from the customer or bank’s side could slow down the process and lead to unnecessary complications and delays. With RPA, banks can now accelerate the process based on set rules and algorithms and by clearing the bottlenecks that delay the process. Implementation of RPA technology is but one component of a successful transformation program.

IA collects and structures data from CIMs to make informed decisions saving time and due diligence. Want to automate your processes but feeling confused with where to start? Financial RPA can automate a large array of reporting tasks, including monthly closing, reconciliations, and management reports.

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