How RPA Integration Solutions will Optimize BFSI Business Workflow?

Updated on Feb 6th, 2024

How RPA Integration Solutions will Optimize BFSI Business Workflow

The banking and financial industry has grown at an unprecedented rate in recent years, thanks to technological advancements that have resulted in faster, more robust, and more trustworthy services.

The shift from standard banking to digital banking has accelerated in recent years, and banks are increasingly focusing their efforts on improving the experience for customers.

But,

With the growing popularity of virtual banking, the key aim is to provide the greatest possible user experience while maintaining the best level of security. Furthermore, banks must enhance efficiency while reducing costs as much as feasible.

Robotic process automation in the banking industry helps to keep costs and timeliness under control. Also, RPA is already being used by leading banks around the world to automate and streamline their financial activities.

  • According to the Fortune Business Insights, the worldwide robotic process automation market is estimated to reach USD 6.81 billion by the end of 2026.
  • The digitization of manual operations in banks has aided BFSI businesses in increasing operational agility and meeting constantly changing consumer needs.

But what exactly is RPA? How does robotic process automation in banking work?

Let’s find out!

Today, in this blog, we’ll discuss,

So, let’s start with,  

What is RPA? 

Robotic Process Automation (RPA) is the use of software robots that are designed to do repetitive and time-consuming tasks.  

According to a recent analysis from Fortune Business Insights, the worldwide robotic process automation market is estimated to reach USD 6.81 billion by the end of 2026. 

Okay, but, 

What is Robotic Process Automation in Banking?  

Banks can use robotic process automation to minimize manual effort, improve compliance, limit risks, and improve the overall customer experience. Furthermore, the low-code approach makes automation ideal for banks and financial organizations because there are no additional infrastructure needs. It also aids in the acceleration of essential processes, resulting in an immediate increase in accuracy and productivity and a reduction in costs and time-to-market for different offerings.  

Now, let’s check, 

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How does Robotic Process Automation in Banking Work? 

Most of the tiresome back-office work that gives bank staff a headache can indeed be handled promptly and effectively using RPA. By introducing RPA into the banking and financial industry, banking institutions may dramatically lower the need for human resources, saving money while also improving performance, timeliness, and efficiency. 

Every day, banks receive a large number of inquiries. Some questions are about a loan or an account; others are about bank fraud, debit cards, or transaction-related issues. A customer support team may find it challenging to respond to these inquiries in a timely manner. 

However, by using robotic process automation in banks, the bots will be able to answer generalized questions while the customer care people will handle more difficult ones.  

Moving forward, let’s look at how robotic process automation is altering the banking business.  

Also Read- Choosing the Right Robotic Process Automation Software for Your Business

Top Benefits of Robotic Process Automation in the Banking Industry! 

There’re many benefits of robotic process automation in the banking industry. A few of them are:

benefits of robotic process automation in the banking industry

1. Boost Efficiency

Banks get the flexibility to use their full-time professionals for other quality-oriented, more challenging tasks that demand creative potential and intellect after implementing RPA. Such staff could work to develop and sell more personalized products that have been tailored to each customer’s individual wants.  

2. Boost Customer Support Service

Customer service automation, according to most experts across industries, including banking, is critical to its competitiveness. This necessitates the development of RPA solutions that are integrated with chatbots and a more convenient search and storing of user information. As a result, bots are eager to interact with any customer at any time of day. They are prepared to respond to basic questions, leaving complicated therapy to the individuals.  

3. Ensures More Flexibility and Accessibility

Artificial Intelligence in new-generation robots is intended to require minimum maintenance and development. As a result, maintaining Robotic Process Automation operations in banking is a smooth and trouble-free process. Robots are extremely adaptable to operational setups and are also capable of running third-party software. These bots can work swiftly on banking facilities, CRMs, credit card processing systems, and external systems like regulatory background checks, among other things.  

4. Compliance

RPA solutions are available 24 hours a day, 7 days a week, and have a high level of accuracy, which increases the quality of the compliance process. RPA tools are being used by banks to collect transaction data and analyze transaction quality against specified validation standards. In the event of suspicion, the robot immediately contacts the compliance department, which can manage the situation. RPA helps financial firms avoid reputational damage by immediately identifying such issues.  

5. Ensures Easy Data Processing

RPA technologies, according to McKinsey, are capable of handling 60% of these jobs. Robots correctly process completed client forms according to defined specifications, extract and validate data from invoices, confirm payments, provide error messages, and detect duplicate payments, among other things. Data entry is handled by a robot faster than by a human. Businesses save time and money by not having to repeat the task. As a result, customers of banks and insurance firms are less inclined to witness payment delays.  

Apart from the above-mentioned, some other benefits of robotic process automation are: 

  • Create and update entries to accumulate support
  • Ensures easy reporting across several systems
  • Ensures compliance reporting
  • E-form extraction involves taking data forms and entering them into a computer system
  • Boost scalability
  • Credit card applications are processed through web forms
  • Ensures quicker implementation
  • Robots can work continuously and can be ramped up or down depending on the volume
  • Cost & time effective
  • Predictive analytics
  • Improves bank’s operational efficiencies
  • RPA can cut the time it takes to complete specific jobs by up to 90%, according to several reports
  • Data validation & verification 

Moving on, now let’s discuss 

Top Possible Use Cases of RPA in the Banking Industry

As previously stated, the banking and finance industry has a variety of well-defined RPA use cases, have a look! 

Top possible use cases of RPA

1. Easy P&L Statements Creation 

Robotic process automation in banking decreases the quantity of repetitive, time-consuming, and manual operations, allowing banking personnel to focus on their key priority: creating profit and loss statements. Many firms shorten the time it takes to compile reports and enable early accessibility to them, while also providing far more reliable data.  

2. Enhances Bank Reconciliation Process

The bank reconciliation process is time-consuming since it necessitates knowledge workers manually searching through a large amount of transactional data from numerous banks and balancing the final figures. RPA Systems can be created to automate a variety of manual processes, such as validating each payment entry against records as well as other information. The data are reconciled if the entries match. Robots can, however, transmit the records for additional verification if there are any anomalies.  

3. Credit Cards Processing

Undoubtedly, validating and approving credit card applications took a long time. There was a spike in customer dissatisfaction as a result of the long wait times, which led to the request being canceled. Banks, on the other hand, can now expedite credit card validation, approval, and dispatching with the use of RPA. The RPA system takes about an hour to go through the whole process, including gathering papers from the consumer, doing background and credit checks, and deciding whether to approve or deny the credit card request depending on set parameters.  

4. Fraud Detection

Fraudulent transactions have long been a source of stress for banks, and as an industry has grown, the number of such events has increased dramatically. As a result, banks are constantly struggling to manually monitor every transaction and discover fraud tendencies. For detecting suspected fraud and alerting the appropriate department, RPA employs a strategy. If several transactions are done in a short period of time, the RPA will recognize the account and flag it as a possible threat. It aids account monitoring and fraud investigations at the bank.  

5. Loan Processing

A mortgage loan usually takes a long time to close since it must pass multiple tests before being approved, including a credit check, job verification, and assessment or inspections. In the event of a slight error on the part of the banks or the customer, this process may be paused or delayed. Robotic process automation in banking can be used to carry out these duties and eliminate errors that could cause the process to be delayed. It not only speeds up the process but also lessens the workload for manual tasks.  

6. Reporting

As part of compliance, banks must compile a report on their various processes and deliver it to the board of directors and other stakeholders to demonstrate the profitability of the bank. Given the importance of the reports to the bank’s reputation, it’s critical that they’re error-free. While there are mechanisms for supplying data and guidelines for presenting it in an understandable fashion, the banks required accurate data that was free of errors. Robotic process automation in banking helps in the preparation of reports by assisting them with actual data. It collects data from various sources, verifies it, organizes it in an understandable style, and sends it to many recipients.  

7. Account Closure

Banks can use RPA to send automated messages to consumers, requesting that they give the relevant information. Simultaneously, the robot handles account closure requests based on predetermined rules. It will then be easier for the bank employees to manage the task of canceling accounts. They might then move on to a task that requires more attention.

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Conclusion 

In banking, robotic process automation does a lot more to improve a handful of operations. However, to get the most out of RPA for your organization, you’ll need to conduct a thorough process analysis that identifies where investing in RPA technology would provide the most returns. With the numerous advantages of RPA in banking and finance, improving customer experience and creating a competitive advantage will continue to be a key priority for banks. The digitization of manual operations in banks has aided BFSI businesses in increasing operational agility and meeting constantly changing consumer needs.  

Are you looking for robotic process automation (RPA) solution for your business? Contact us; we have extensive experience and expertise in deploying automation solutions for the banking industry and can offer you a thorough overview of RPA.

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