For some of us, when referring to the term"Robotic Automation", the first thing that comes to mind is the industrial robots efficiently performing a set tasks for a particular purpose (e.g. assembling car parts) but Robotic Process Automation is not a physical or mechanical robot. It is simply a software running on a physical or virtual machine, allowing anyone to define a set of instructions, executable by a bot. RPA bots execute commands and are capable of mimicking most human-computer interactions to perform error-free tasks, at high volume and speed.
Think about the repetitive activities within business functions such as customer services, HR, or finance. In finance, payables and receivables traditionally require recurring manual effort to be performed by skilled workers. This leads to an overall slowness in processes which have been for many years, one of the challenges faced by the banking and financial sectors.
According to Maruti TechLabs – an Indian software development firm, operating in the banking sector – over the last decade, banks and financial institutions have reportedly spent more than $321 billion on compliance operations as well as fines. Banks are also estimated to disburse nearly $270 billion yearly, just on compliance operations.
Rising operating expenses, compounded by regulatory fines along with fierce requirements, slow processes down as well as influence and result in poor customer experience.
Enhancing that customer experience could be accomplished by cutting down processing time and cost through a software solution and not by employing more people to manage compliance.
Robotic Process Automation can enable banks and finance companies to reduce manual efforts, offer better compliance, mitigate risks, and enhance the overall consumer experience. What makes automation even more suitable for banks and financial institutions is that there are no additional infrastructural requirements and it has a low-code approach. Its user interface automation capabilities, make it easy to be incorporated with existing infrastructure.
Beyond this, RPA can have various advantages for the financial services and banking sectors.
First and foremost, RPA bots are highly scalable and could manage a high volume of tasks during peak business hours. Secondly, the software is cost-effective and can allow banking and financial institutions can save up to 25-50% of processing time and cost. Thirdly, it helps to generate full audit trails for every process, and thus reducing business risk while maintaining high process compliance. Lastly, it bridges the existing gap between new data and legacy processes, particularly customer services, credit card processing, and account closure procedures.
As daily customer queries can be overwhelming, there is a need to automate rule-based, mundane practices to ensure prompt and world-class services for customers. Also, credit card application processing which can be time-consuming, can be made quicker and more accurate through RPA guided decisions to approve or disapprove applications. Finally, the software could help tackle the issue of account closure administration by automatically identifying clients with such accounts and sending them notifications or reminders for the submission of required documents before the closure of their accounts.
In the quest for more profitable business operations, Robotic Process Automation can be considered as the crucial tool needed to facilitate growth and sustainability in the financial and banking sectors.