RPA in Banking: Real-Life Use Cases - ByteScout

RPA in Banking: Real-Life Use Cases

Banks have numerous routine daily tasks. Solving those tasks with the help of humans will always take a lot of time and be error-prone. But, thankfully, Robotic Process Automation in banking saves us a lot by delivering quick, error-free, and smart solutions to all these problems. How does it do it? Let’s take a quick look!

RPA in Banking

What is RPA in banking operations?

RPA in the banking industry is a revolutionary technology that will change the way we daily use banking services and the way banking employees use it. The robotics in banking operations will boost productivity and minimize labor-intensive processes. RPA reduces the overall costs without any need for outsourcing. You can use the RPA software to take actions like opening applications, clicking, copying and pasting information, sending emails, and other manual work.

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Why should we implement process automation in the banking sector?

There are numerous benefits of using robotics in the banking sector. One of the advantages is that it doesn’t require new core IT infrastructure change. Instead, it is a low-cost additional layer that adds to the existing core banking systems. Nowadays, the development of technology is so far that the implementation is so fast and doesn’t require coding at all. Robots are highly scalable, which means you can increase the use of RPA based on the scale of your operation at the time of peak hours or dull hours.

RPA is also vital in generating audit trails which reduces the overall risk and compliance process. Since RPA is a technology, it doesn’t have any fatigue and works 24X7 for 365 days. And instead of decreasing morale, it increases employee morale by automating all the tedious data entry work.

The strategy development of the organization improves when the operational efficiency of the organization increases, helping banks to take an informed decision. RPA can also track account activity and help prevent fraud. You can also easily update the system without much effort.                                            

What are the RPA use cases in banking?

Every organization has different needs, and therefore the room of RPA can’t be decided generally. Some of the RPA Banking Use Cases include consumer loan processing, opening a bank account, and customer verification process. RPA can help to reduce errors, reduce processing time, and improve data quality. Besides that, RPA can automate query resolution processes to improve customer service.

RPA can process multiple systems simultaneously to do customer verification for credit processing. Banks have also improved the KYC(Know-your-customer) process to collect customer data, screen it, and validate it. The KYC process has now become so much easier and error-free that it saves up a lot of costs.

The banks also use the report automation process in the organization to prepare various reports and present it to the stakeholders of the organization. The fixed templates of reports in the system help create standardization of reports and make them much easier to understand.

The real-life examples of RPA in the banking industry are as follows

  • RPA has already proven to reduce turnaround time by nearly 30% while giving 100% operational accuracy and cutting costs by $50,000 a year in the account opening process. A global bank achieved this result by extracting information from input forms and feed it into different host applications using robots.
  • A leading bank in the UK has successfully reduced turnaround time 30-35% and increased productivity by 20% by eliminating all the manual work.
  • The ATM testing robot can save costs and time up to 80% by testing ATMs on various aspects like screen, keypad, card dispensing mechanism, cash and check handling mechanism, cash counting mechanism, and debit and credit card, differentiator. (Source: TCS)

Is RPA Stealing jobs?

Whenever we talk about RPA for banking we don’t mean they are taking your jobs they are taking all the manual and tedious work. The automation will help bank employees to focus on more complex problems. Front line bank employees in banks using RPA can automate their share of the work if banks provide them with proper training. RPA is aimed to make jobs easier for both employees and the consumer rather than taking away something.

RPA Implementation Process

The first step to implement RPA in the banking sector is to shortlist the processes in which banks can improve with automation. To shortlist such methods, banks need to conduct a detailed assessment of the bank’s problems in the manual system and how can RPA resolve it. The next step is to calculate Return on Investment(ROI) of implementing RPA in the organization. It is crucial to check whether there is any financial advantage of applying the RPA.

And it should also justify the time and effort put into implementing the banking process automation. The last step is to form a well-defined execution strategy to implement the process into the banking organization. Banks have to choose the right automation model for their organization, service provider, right people to manage it, and other vital details. This step is a crucial step that can define the success or failure of the RPA. So, choose the parameters wisely.

Risks of RPA in banking sector

Every benefit comes with a considerable amount of risk. Similarly, there are various risks associated when we bring robotics and banking together. The significant risks are operational, compliance risk, data-quality risk, and ethical risk. The operational risks occur when there is no IT department to maintain and keep a check on robots. There is a stringent need to regularly check the working of robotics and automation in banking to ensure minimum operational inefficiency in the organization.

Due to regular changes in the regulatory requirements of the banking sector, it is essential to update and update the banking software regularly. Failing to follow the laws and regulations you might face the compliance risk while implementing business process automation in the banking industry. There is also a data-quality risk that generally occurs when the data entered is bad at source when the front-line employees enter it into the system. So, it is necessary to keep a check on the quality of data; the employees feed into the system.

Many organizations, after implementing process automation in the banking sector reduce the employee toll to extremely low and fail to create a balance between technology and humans. This type of risk is known as an ethical risk, and creating an optimum combination of humans and technology will help mitigate the risk.

Conclusion

We cannot ignore that RPA has a slight risk when it comes to robotic process automation use cases in banking. But the danger is far behind any other long-term core technology implementations. And the benefits overpower the risks so much in the organization that RPA will soon become a necessity for organizations and especially in the banking sector.

Thus, banks should implement RPA in banking operations, but only if you choose the service provider and the kind of service you need wisely. There are many RPA banking use cases, and it will only increase from where it is now. And once more people are educated about the benefits of RPA, people will understand that instead of taking away our jobs, it is to make our jobs easier. So, the future is knocking our doors and let us welcome the helpful guest with a warm heart.

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