Banking occupies a central position in economics by being a critical intermediary. It is necessary that the sector stays updated with the latest technology. With so many transactions that are collectively worth billions, there is no room for even a slight error in banking because that might result in heavy losses.
At the same time, banking operations have to be fast and efficient enough to encourage businesses and other economic activities. Thus, the sector surely deserves to be benefitted from progress in technology. And RPA is a great tool to take banking into an advanced level of performance and security.
What is RPA, and why is it so important
RPA stands for Robotic Process Automation. It uses specially designed software or preprogrammed bots to automate the working environment of different institutions, including banking. As stated above, RPA ensures security, enhances overall performance, and makes banking operations more cost-effective.
Here is how RPA enhances banking operations
- Does tedious tasks
Banking institutions have to deal with a lot of data. And there are particular tasks to organize, extract, and feed these data into computers. Most of these tasks are time-consuming when human employees are assigned to do them.
Since such a job doesn’t provide any value to either the firm or the individual, it would be a wastage of human resources and money.
On the other hand, specially designed software can do these activities constantly. For 24/7 if needed and with higher accuracy.
- Error Free
One big drawback with human laboring is that the brain can’t focus on such a monotonous activity for a longer duration. It might cause errors that might even result in heavy losses for banking institutions. But machines and computers have no such disadvantages. They can provide error-free outputs.
- Faster execution
When programmed, Robot software is faster than human beings. Advanced algorithms that run these robots can do complex tasks within seconds, which would have been minutes or hours for a human employee.
RPA in various banking processes
RPA enhances various banking operations, from customer support to auditing.
Here are some banking processes that RPA greatly benefits.
- Customer support
Banks receive an overwhelming number of queries and support requests each day. It would be hard for customer service executives to attend them all. A large portion of those queries is often easily solvable.
Bots can be employed to attend easily solvable queries and support requests
- Faster mortgage
In the conventional banking system, it takes weeks for banks to process mortgage loans. Banks have to learn about the risks involved, loan repayment history, income level of the person intending to take the loan, etc. By automating banking systems with RPA, those tasks can be done quickly.
- Credit card approval
Similar to the case of mortgages, approval of credit cards is a time-consuming procedure. Collecting required documents and verifying them can be a tedious task. But by implementing RPA, the process becomes much faster.
- KYC processes
Learning about customers and authenticating their identity is a critical task for banks. They have to spend millions to do so using human employees. Through RPA, these processes can be done at a significantly lower cost and without any error.
- Transactions monitoring
Thousands of financial transactions are being carried around the world each moment. To monitor them with conventional banking techniques is not practical anymore. By utilizing specially designed software to trace online transactions and report susceptive ones, transaction monitoring would be much more efficient.
- General ledger and auditing
The most significant advantage of RPA is perhaps while creating and maintaining a general ledger. By documenting a bank’s liabilities, assets, equity, expenses and income details using digital tools, maintaining a general ledger would be an easier task. Also, banks won’t have to deal with big piles of physical files while preparing for auditing.
RPA brings endless possibilities for making banking operations much more convenient and efficient. In addition to the above-discussed ones, RPA helps banks in risk management, improving compliance systems, and understanding expansion possibilities. Automation is, in fact, a necessity in the banking sector. To learn more about Robotic Process Automation in banks, visit https://diceus.com/industry/banking/robotic-process-automation/
RPA- need of the hour
RPA is the need of the hour in banking. It is a smart solution to modernize banking to cope up with the changing world. It makes banking operations more convenient, enables resource optimization by freeing humans from tedious tasks, and returns better financial benefits.
