Robotic process automation (RPA) is a form of business process automation technology that allows employees to configure computer software, or a “robot,” to capture and interpret existing applications for processing transactions, manipulating data, triggering responses and communicating with other digital systems. In the banking sector, RPA is often used to automate processes such as account opening, customer onboarding, claims processing and KYC checks. In this blog post we take a look at 10 amazing RPA examples in banking that will Amaze You.
What is RPA?
Robotic process automation (RPA) is a type of artificial intelligence (AI) that automates repetitive tasks. It involves the use of software robots or bots that are deployed to interact with enterprise systems in the same way as human beings. By doing so, RPA can help banks to speed up processes, reduce costs, and improve customer service.
Robotic process automation (RPA) is a type of software that simulates human tasks. It must used to automate business processes such as customer service, accounting, and HR. While it was once only used by large banks and insurance companies, RPA is now being adopted by small businesses as well.
There are many reasons to love RPA. Perhaps the most obvious one is that it can save you a lot of time and money. Automated tasks executed quickly and accurately, reducing the need of work.
What is RPA in finance and banking?
Getting started with RPA Examples in Banking? Financial RPA can defined as the use of robotic applications to increase (or replace) human efforts in the financial sector. The RPA assists banks and accounting departments to automate manual processes, allowing employees to focus on the most important tasks and the company to gain competitive advantage.
The basic robot-regulated process is limited in what it can do. It simply follows the rules to perform tasks automatically without variability. For example, it may log into an account, move some of the files, and log out.
To develop the RPA, banks use intelligent automation by adding artificial intelligence technologies, such as machine learning and the ability to process natural language. This enables the RPA software to manage complex processes, understand human language, sense emotions, and adapt to real-time data.
10 Amazing RPA Examples in Banking
RPA is a type of artificial intelligence (AI) that automates repetitive tasks. We provide examples of RPA in banking and financial services.
Robotic process automation (RPA) is one of the most exciting and fastest growing technologies in banking today. RPA is a software that helps you automate your business processes. It mimics the way you do things on your computer, by automating the tasks that you do repeatedly.
RPA has already used to great effect by banks all over the world. Here are 10 Amazing RPA Examples in Banking:
By 2019, the cost of complying with anti-money laundering laws totals $ 31.5 billion in financial institutions in the US and Canada. According to a study, highly skilled analysts who should be able to detect such crimes spend about 75% of their time collecting data and putting another 15% into the system. Both functions can performed automatically allowing anti-fraud professionals to focus on their core business.
The automated financial automotive system can further assist in the investigation of money laundering by using the “then” approach to detect potential fraud. For example, if multiple transactions made in a short period of time, the RPA may mark the account as a potential threat and report it to the relevant department.
2. RPA For Production Report/Report Generation
The financial RPA can automatically perform a wide range of reporting activities, including monthly closing, reconciliation, and management reports.
In terms of compliance, banks and financial institutions are required to prepare detailed reports on their operations and challenges and submit them to the board of directors. These scripts are built with a large amount of data, which makes them tedious and error-prone. However, financial robots and banks can collect data from a variety of sources, present it in an understandable format, and generate accurate reports.
As Society General Bank of Brazil compiled the RPA for reporting on its processes, it automatically created a workflow that previously required six hours of working days.
In addition to assisting employees to report, RPA banking can also assist law enforcement officials in processing suspicious activity reports (SAR). Instead of reading long documents in person, officials relied on powerful software for processing natural language. Such a system can generate the required information and complete the SAR form.
3. Accounts Payables RPA
When done in person, managing paid accounts is time consuming as employees need to digitize merchant invoices, verify all fields, and only then process payment. An RPA on accounting that is enhanced by recognizing visual cues (OCR) can take on this role. OCR can extract invoice information and forward it to robots for verification and processing. In the event of errors, the system will notify bank employees.
Our internal expert shared the following example from his portfolio.
The Children’s Controller and Car Seat Company wanted to automate the process of verifying its paid accounts. The company has branches in various locations. And each sends its own financial statements in its own unique way, different from the other departments. It is troubling to consider all of this in person and to make sure that the information provided complies with the bank statements.
Automatically doing this verification work has brought in about $ 300,000 in annual savings.
4. RPA for mortgage processing
This is one of the most common cases of RPA banking and financing. According to The Mortgage Reports, closing a loan can take banks 60 days. Lending officials must go through many stages, including job verification, credit check, and other forms of evaluation. In addition, a minor mistake made by an employee or applicant can greatly reduce the case. The automated financial system can reduce credit processing time by 80%, which will be of great benefit to both banks and customers.
Radius Financial Group relies on the RPA for banking to speed up the processing of loans. Prior to the RPA, loan analysts felt frustrated at managing 30 loans in their credit line, but now with their robotic assistants, they felt free to manage up to 50 loans without feeling pressured. This arrangement has allowed Radius to reduce borrowing costs by 70%.
Smart robotic automation has allowed Radius to thrive even in the COVID era. The company has registered a 30% higher interest rate on the industry compared to the Mortgage Bankers Association. The company also has an average income of 50% above the average banking sector.
5. RPA know your customer (KYC)
KYC is a time-consuming process for banks to do for all customers. It can cost up to 1000 equal full-time (FTE) and $ 384 million a year to make this process compliant. Warning investigations are also time consuming, while up to 85% of daily alerts are false, and about 25% need to be reviewed by top level analysts. By all efforts, banks are losing 50 million euros a year on KYC compliance penalties.
The automatic introduction of the robotic financial system into the KYC system will minimize errors, which would require unpleasant interactions with customers to solve problems. Therefore, the RPA will speed up customer entry and improve customer experience.
6. Developing a Communication Center
As many physical interactions with customers do not work or operate in limited quantities during the COVID-19 crisis, banks face a large number of incoming calls on their communication centers. RPA tools and chatbots can help manage much of this traffic. For example, Bots can handle common questions related to account statements and activities. While questions that require personal decision-making are referred to the appropriate knowledgeable staff.
7. Commercial Financial Services
Banks can use RPA solutions to increase their financial performance in trading and improve their presence in the supply chain. India’s leading bank uses Nividous RPA for automated processes related to issuing, managing, and closing credit cards – a highly preferred financial trading tool. The automation enabled by Nividous RPA Bots improves the conversion time by 70%, improves process visibility by 80%, and also brings a 50% reduction in operating costs.
8. Customer Login
The process of getting customers to the banks is very complicated, mainly due to the verification of a few IDs. Know-Your-Customer (KYC), an integral part of the boarding process, incorporates important operational efforts for such document authentication.
According to a recent survey conducted by Thomson Reuters, the cost of conducting KYC compliance and due diligence of customers could be significant, ranging from $ 52 million per year (bank) to approximately $ 384 million.
Nividous has developed KYC solutions that include RPA and computer vision (CV) and intelligent character recognition (OCR) to extract relevant information. And verify your identity as provided by the customer in the application form. Automation not only helps to eliminate hand-made mistakes but also saves valuable time. And effort for the team working behind the office.
9. Anti-Money Laundering (AML)
A recent report by Booz Allen Hamilton states that analysts against money laundering often spend 10% of their time on analysis. Most of their efforts, close to 75%, go into data collection and another 15% goes into data entry and editing.
One of the best examples of RPA banking is the automation of the complete AML investigation process. The procedure is very manual and takes anywhere between 30 to 40 minutes to investigate a single case. Depending on the complexity and availability of information across different systems. These repetitive and rule-based tasks can easily performed with RPA, allowing for a 60% reduction in the turnaround time.
10. Closing of Bank Certificate
This is a special but very appropriate RPA case for many banks. The bank guarantee closure process requires a team of experienced staff to manually record data between multiple disconnected asset systems. And identify bank guarantees that must closed / terminated / issued. The production and distribution of notices and the execution of closures / closures also done in person. In addition, there are several hand-made guarantees in each category that reduce the overall product. The RPA can used to automatically perform a complete procedure.
Developed countries leading bank has successfully used Nividous RPA Bots to automate the entire bank guarantee closure process to achieve faster customer communication and a 45% reduction in process management time.