Globally, more than ever businesses are embracing technologies to scale up. No doubt, Enterprises that still rely on manual processes will be behind in a short time. Robotic Process Automation (RPA) has been a buzzword around since a couple of years. Importantly, many Banking and Finance companies have already started using and reaping the benefit of RPA. Moreover, many banks now adopt Intelligent Process Automation (IPA) wherein the capability of RPA along with Artificial Intelligence is combined to make more intelligent automation. In this blog let us try to understand how important is automation, the real benefits of RPA in the banking segment, how simple is to implement Automation and what will be the ROI?
Importance of Automation for business houses
- Do we still send letters via postal or use email or other live messaging systems?
- Do we use google maps to locate a destination or ask the pedestrians until you get there?
As an individual or a business house, how much we can stay away from these technologies? Only because, it is more sensible, reliable, time saving and more efficient and makes our daily life simpler.
As business houses, automation of repetitive Tasks is an area which is effectively resolved by using RPA. We all are aware of this technology but what I stress is, it is more sensible, reliable, time saving and very efficient option. For us to stay competitive, we will have to automate our processes because, 2-3 years down-the-line RPA will be as google maps/email in above cited scenarios. Forrester, estimates that by 2021 there will be more than 4 million robots doing office and administrative and sales related tasks. Fortune Business insights tells that among BFSI use cases, regulatory reporting and reconciliation are the most demanded ones.
Repetitive tasks in Banking and Finance businesses
What are the tasks in your business which are repetitive in nature?
- Gathering data – Various customer channels such as Online Service Portal, Mobile channel, Call Centre system, Physical branches
- Reviewing – Verification of the data in multiple iterations and making it accurate (KYC verification, loan document verification) such that the task can be fulfilled.
- Inputting – Feeding data into various systems such as Loan origination, Lending systems, HR systems
Multiple systems in the organization necessitates the individual to login into multiple systems, multiple times, copying-pasting, changing formats etc. to perform the above mentioned jobs.
As it is manual, all these works will have its own errors. These works are mundane, and repetitive. Doing these works daily makes our employees less motivated, gradually.
Also let us look at the following situations in that occur regularly in our organization…
- Data entry errors due to which the reports are incorrect
- Not Submitting the reports to regulator or government on time
- Unavailability of right reports in the right time for management decision making
- Same Manual tasks done repeatedly (eg: Verification of KYC documents of a new customer onboarding, calling all the EMI missed customers to remit their EMI etc.)
- Service calls from your customers – think that 90% of your customer calls will be for same 3 or 4 reasons
The majority of the works involved in the above tasks are of same kind. The RPA technology can help us drastically reduce the manual involvement in all these activities.
RPA – Simple and easy to implement
Without disturbing or with least changes on existing systems automation in banking & finance can be implemented. It will have only very less change on existing IT strategy and architecture. It can begin with simple rule-based tasks that we automate. Further, on realizing the benefits and attaining maturity this can be enhanced by using machine learning algorithms adding more intelligence.
Let us take a sample case study of Document processing RPA project in a leading Finance company done by Speridian Technologies. KYC document verification, Loan application processing related documentation are areas where Automation is being implemented. The challenges faced in legacy systems in comparison with the benefits of solutions using RPA are shown in below diagram.
The bots can extract data from structured, semi-structured and un-structured documents and substitute for human validation efforts. This was a 12 weeks project. The RPA solution was implemented without disturbing any of the existing IT infra. At a high level the following are the steps followed.
Overall it is found that 40% increase in productivity of resources working on it with 52% decrease in errors and related rework.
Other important use cases for automation in banking & finance segment are as follows.
- Regulatory reporting
- Compliance processes
- Credit collections
- Customer service and complaint handling
- Closing activities –Financial year closing, account closing etc.
- Opening activities – Account opening, Customer onboarding, Loan application processing
Benefits of implementing Automation in Banking & Finance
- Avoid mundane tasks and redeploy your valuable resource in more productive works.
- Reduce cost, increase productivity
- Faster and accurate results lead to better customer experience, better decision making
- Improvised security, availability of Audit trail helps mitigate risks and stay compliant
- Advanced human skills stay better utilized, Avoid Human errors, Avoid Human unavailability and related gaps – such as sick, unforeseen needs etc.
So to summarize RPA (Automation) is a promising option that we cannot stay away from. Contact us to know more and help you leverage automation in banking & finance benefits to your organization helping you increasing the productivity and profitability of the company.