What are some top use cases of robotic process automation (RPA) in the banking industry?

RPA in banking uses advanced business process automation tools to automate routine, repetitive tasks, freeing employees to focus on more high-value, customer-centric activities. Simply put, RPA increases efficiency exponentially by simulating the behaviour of humans interacting with software.

RPA Use Cases in the Banking Industry

1.Customer service

Banks deal with a variety of inquiries ranging from bank fraud to account inquiries, loan inquiries and more. It is difficult for the customer service team to resolve the issue within a short period of time. RPA frees up customer support workers to concentrate on high-priority inquiries that call for human intelligence by helping to resolve low-priority concerns.

RPA also helps reduce the time it takes to verify customer details and onboard them across disparate systems. Shorter waiting periods and simpler solutions have helped banks improve relationships with their customers.

2.Compliance

There are so many compliance rules that it is a difficult task for banks to comply with them all. RPA makes it easier for banks to comply with regulations. RPA helps increase productivity by operating 24/7 with fewer FTEs, improves the quality of compliance processes, and increases employee satisfaction by eliminating monotonous tasks and engaging employees in tasks that require human intelligence. It's possible.

3.Accounts Payable

Accounts Payable (AP) is a tedious process that uses Optical Character Recognition (OCR) to digitise supplier invoices, extract information from all fields on the invoice, verify and process them. RPA automates this process, adjusts for errors and confirmations, and then automatically disburses the supplier's account.

4.Credit card processing

In the past, banks would require weeks to review and approve a customer's credit card application.Long waiting times lead to customer dissatisfaction and sometimes even cancellation of customer requests. However, with the help of RPA, banks can now speed up the credit card transfer process. RPA software only takes a few hours to collect a customer's documents, perform a credit check and background check, and determine whether the customer is eligible for a credit card based on established parameters. With RPA, the entire process is completely streamlined.

5.Mortgage Processing

In the United States, it ideally takes 50 to 53 days to close a mortgage loan. The process took time because the application had to go through various screenings, including credit checks, employment verification, and pre-approval checks. Small mistakes on the part of the customer or the bank can slow down the process and create unnecessary complications and delays. Banks can now expedite procedures based on pre-established rules and algorithms and remove bottlenecks that impede them thanks to RPA.

6. Fraud detection

One of the major concerns for banks is the increase in fraud cases. Advances in technology have doubled the number of fraud cases. This makes it difficult for banks to verify all transactions and detect fraud patterns manually.

RPA uses an ‘if-then’ method to identify potential fraud and report it to the relevant departments. For instance, RPA will identify the account and warn it of possible dangers if several transactions take place in a short amount of time.It helps you monitor your bank accounts and investigate fraud.

7.KYC process

Know Your Customer (KYC) is a key compliance process for all banks. Some banks spend at least $384 million annually on KYC compliance, and this procedure is so important that it takes at least 150 to 1,000 FTEs to complete customer verification, according to Thomson Reuters. In light of the expenses and resources associated with the procedure, banks are now beginning to gather, filter, and verify consumer data via RPA.This allows banks to complete the process in less time while minimising errors and manpower.

8.General ledger

Banks must update their general ledger with all important information such as financial statements, assets, liabilities, revenue and expenses. This information is used to prepare the bank's financial statements, which can then be accessed by the public, media and other stakeholders.

Given the enormous amount of detail required across different systems to prepare financial statements, it is important to prepare a general ledger that is error-free. RPA steps in to save the day in this situation. It collects information from various systems and verifies it to help update systems without errors.

9.Automate reports

As part of compliance, banks are required to prepare reports on various processes and submit them to the board of directors and other stakeholders to demonstrate the bank's performance. Considering how important your reports are to your bank's reputation, it's important to ensure they are error-free.

Banks require precise, error-free data, even if there are systems that offer data and templates for presenting it in an ingestible fashion.RPA helps banks prepare reports with accurate data. Collects and verifies information from a variety of sources, organises it into an easy-to-understand format, and schedules it for transmission to the various sources.

10.Account closure process

Banks receive many requests to close accounts every month. Sometimes, accounts are also closed if the customer does not provide the necessary evidence to maintain the account. When you consider the large amounts of data banks process each month and the checklists they must follow, the scope for human error also increases.

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