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In the ever-evolving business landscape with constantly changing customer needs Banking, Finance, and Insurance sectors need to transform their operating models to withstand and remain competitive. Automation is the next-gen technology and the key to transform manual processes to automation. As per Gartner, banking and investment organizations, IT spending is forecast to grow to $761 billion by 2025.
Increasing expenses, outdated banking experiences, talent scarcity, data breaches, and ever-evolving customer expectations are some major challenges that the banking and financial service sector is constantly trying to address. Robotic Process Automation performs typical mundane tasks more efficiently than humans, and enable the processing of a large amount of data at a much faster and accurate rate. RPA is expected to eclipse the $22 billion market value by 2025 as per Forrester and is a must-have capability that banks and financial services should incorporate to face the evolving future with agility and confidence.
1) Optimize cost with RPA
Maintaining a large amount of data on a constant basis is exhausting and tedious, but RPA can automate the operations like document extraction and indexing in seconds with great efficiency and can significantly cut costs by as much as 75%. Banco Popular, a financial services conglomerate located in Puerto Rico, used RPA to identify and automate 19 high-volume macro-operational procedures, enabling them to increase the quality of services provided to their clients, and drive massive cost savings.
2) Interface with ongoing IT framework
RPA can be integrated easily with the ongoing IT framework. Implementing in the current infrastructure banks and financial institutions can automate rule-based tasks, time-intensive processes, and configuration backups. It helps banks and financial service providers to save enormous costs, time, and utilize the workforce for other productive tasks and eventually drive greater efficiency and generate enterprise value.
3) Efficient Regulatory Compliance
Banks and financial organizations need to comply with numerous laws and regulations. It’s a challenge to meet stringent compliance regulations. Implementing RPA helps to handle frauds, quality assurance processes, risk management, regulatory monitoring and compliance reports. It robotizes rots and routine tasks and address some key imperative of regulatory compliance. By implementing RPA in the ecosystem banks can easily handle fraud and risk, reconciliation, regulatory monitoring, quality assurance processing, and compliance reporting.
Mortgage Origination
Banks, according to The Mortgage Reports, require 45-60 days to complete the full cycle. Mortgage lenders collaborate with a number of other vendors who interact with the lender’s core Loan Organization System (LOS). These interfaces may include imaging, appraisal, employment verification, and fraud detection. The lender must frequently do multiple manual processes in order to process the invoices. Cleaning and analyzing spreadsheets, collecting internal load information, and executing logical procedures are all part of the job. RPA systems can execute this more efficiently and quickly with a stated set of goals such as loan start, report verification, monetary comparisons, and quality control.
Customer Onboarding and KYC
Customer onboarding and KYC are time-consuming processes that each bank goes through by scrutinizing every document. As indicated by a Thomson Reuters report, banks spend approximately US $500 million every year on KYC compliance. RPA bots operate around the clock and swiftly respond to changes in KYC requirements, internal development, or any outside threats. RPA as an emerging banking technology enables fast adaptation and improves scalability in the KYC process.
Automated Report Generation
Banks, financial, and insurance service providers have to strategize, plan budget reports and keep up-date with accurate data and information like income, fiscal summaries, liabilities, expenses and much more. RPA in fusion with natural language processing (NLP) builds insightful data-driven error-free reports. With the use of RPA, one of the world’s largest conglomerates of audit, consulting, tax, and advisory services, boosted productivity and reduced report preparation time from one week to minutes.
Anti-money laundering
According to United Nations, Financial institutions suffer from around $800 billion to $2 trillion USD, in Anti-Money Laundering (AML). RPA can follow customers’ ongoing and previous transactions, obtain data from various sources, perform data modelling, compare customer specifics to the list of AML systems and raise a red flag if anything suspicious is found. RPA can also help to minimize the number of false positives.
Going Forward
Implementing RPA is one of the best thing banking and financial services do, especially today when they are going through various internal challenges like process inefficiency, employee attrition, cultural shift, and external challenges like government policies, regulatory compliances, changing business models, and rising expectations.
RPA can be deployed across the organization freeing up employees to concentrate on much more important tasks. Innover’s banking and financial consulting services help evaluate your business functions and processes to exactly highlight the areas that can be powered by RPA. Utilize our extensive digital expertise to propel your services across Capital Markets, Asset & Wealth Management, Insurance, Payments, Retail, and Commercial Banking.
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