“The Measure Of Intelligence Is The Ability To Change” – Albert Einstein
Changing with time is believed to be the key to success by many scholars. Whether it is about an individual or a business, moving along with time is all we need to remain ahead of others.
It is no secret that the banking industry found it difficult to move along with time and keep up with technological advancements. However, adopting these technologies was the only option to provide the best customer experience to customers and remain competitive in the saturated financial sector.
Soon the banking industry became aware of the numerous benefits that these technologies had to offer, and now, as per Sage Journalism, the adoption rate of fintech is 64% globally. According to Statista, in the first quarter of 2019, the value of Fintech financing globally amounted to approximately 33.9 billion U.S. dollars.
Numerous advanced technologies transformed the banking sector. In this post, we will talk about one such technology, Robotic Process Automation (RPA).
What is RPA?
RPA refers to the process of programming software in a way that enables robots and virtual assistants to perform monotonous tasks without any human interference.
It is amongst the top technologies that have gained tremendous popularity in the preceding few years by enhancing work efficiency in the banking sector.
Some ways in which RPA software has contributed to the growth of the banking sector are as follows:
- Robotic process automation software aids in saving labor and operational costs by performing intensive tasks without human interference.
- It contributes to the growth of a bank by providing the best user experience.
- RPA operates with robots and virtual assistants, thereby minimizing errors.
Top 4 Use Cases of RPA In the Banking Industry
The global robotic process automation market size was already valued at $1.40 billion in 2019 and is expected to reach $11 billion by 2027, expanding at a CAGR of 34% from 2020 to 2027, according to Grand View Research.
Let’s find the reason behind such rapid growth of RPA by going through its top use cases in the banking industry.
Customer onboarding is one of the most daunting tasks performed in the banking industry. Manual verification of each customer’s identity documents takes up too much time and effort. Moreover, the Know Your Customer (KYC) process makes this process even harder. This is where RPA comes into play.RPA bots can automate the whole customer onboarding process while directing only the edge cases that require human intervention to an employee, thus saving the employee’s time and enhancing work efficiency. According to a study by THOMSON REUTERS, banks are spending an average of $60 million annually on KYC compliance, and 89% of corporate bankers had a bad experience with the KYC process, which forced 13% of them to change banks. But with RPA, banks can avoid situations like this and can speed up their processing times, reduce their error rates, and at the same time improve their security and compliance.
Enhanced customer experience is the key to success for every business. During the COVID-19 crisis, the banking industry faced an obstacle in providing customer support to their clients, especially because of the tremendous volume of inbound calls received every day while operating with limited customer assistance.RPA bots played a huge role in taking this burden off the banking industry. Customers were able to solve their queries using chatbots and only the queries that required human assistance were forwarded to the customer support team. Therefore, RPA helped in handling a significant portion of daily traffic and enhanced customer experience.
Anti-money Laundering (AML)
Money laundering activities cost the world 2% to 5% of its GDP. However, with the implantation of RPA, this can be avoided. The AML process is extremely manual and takes anywhere between 30 to 40 minutes to investigate a single case depending upon the complexity and availability of information in various systems. With the implementation of RPA, these repetitive and rules-based tasks can be easily automated, while leaving no space for errors. This will help to enable more than a 60% reduction in process turnaround time and at the same time avoid fraud.
RPA can automate various financial processes in the banking industry. Such as:
Loan Processing and Validation – Loan processing is a long process and requires a lot of work but with RPA banks can simplify data transfer between systems as this process includes input from multiple systems. Simplifying data transfer can save much time and effort.
Account Closure – Account closure is another tedious process that involves a range of manual tasks, but with RPA, you can automate it. Banks can automate their systems with RPA technology to enable their customer assistants to take care of the electronic forms over the phone. Later, you can forward them to the central mailbox where the RPA system can process them with no manual intervention.
Similar to them RPA can also automate other financial processes:
Card Management – Same-Day Funds Transfers
With such advantages to offer, banks should consider using RPA in all their operative areas to enhance customer experience and gain an edge over their competitors.
If you are looking for RPA service providers to revamp your chatbot services, then Jellyfish Technologies might be the best option for you.
Jellyfish Technologies follows the best RPA development and implementation practices to help businesses achieve specific automation goals. Furthermore, our AI-powered intelligent RPA solutions are highly secure, low in code, rich in analytics, and capable of dynamic interaction while debugging.