Robotic Process Automation (RPA) is gaining prominence across various industries, particularly in financial service organizations of all sizes. This is not radically new. Undoubtedly, the banking sector is the biggest consumer of RPA. It is predicted that most jobs in the financial services sector will be taken over by robots or Robotic Process Automation, better known as RPA.
RPA helps transform business processes of a financial services firm to a great extent — focusing on speed, accuracy and cost-efficiency. Organizations that do not leverage the potential of RPA are missing out on a huge opportunity. As robots take over repetitive mundane tasks, they free up the human workforce to focus on more strategic aspects of the business that require decision-making skills.
It’s essential to know the pain-points of the customers for companies in the financial services sector to realize the benefits of RPA implementation. From claims processing to policy issuance, banks, insurance companies, and other financial services firms have automated their operations, embarking on a journey towards digital transformation.
What are the typical processes where automation can be implemented? Which are the systems that can be replaced with automation? These are some of the mind-boggling questions that many potential clients in banking ask. There are several low-hanging fruits that financial services firms can benefit from by adopting RPA technology. In this blog, we will take a look at how RPA can be tapped in financial services and the numerous benefits it provides.
Analyze massive amount of data easily
Many investment banks, clearing organizations and other financial institutions have incorporated Automation and AI-driven processes to transform and streamline their businesses, gaining efficiency and effectiveness in the long-term. With massive amounts of data out there, there is a pressing need to apply analytics to analyze Big Data. Analyzing data helps banks connect the dots concerning accounting, risk management and regulatory requirements in real-time.
Bots can carry out a large percentage of manual work, access systems and applications, collect data from various systems and conduct analysis, allowing you to make better decisions.
Take over the mundane, dreary jobs
The business process of a financial institution involves never-ending paperwork where mistakes can cost the organization leading to time-consuming processes and errors. This is where Bots come into the picture. Backoffice processes involve plenty of repetitive tasks that can be quite time-consuming and daunting. Since virtual workers can be deployed 24/7, the human worker can devote more time to complex interpersonal tasks that require emotional intelligence, creativity, reasoning and judgement, thus bringing in higher levels of productivity.
Virtual workers can work 24 hours a day, faster, quicker and more accurately, allowing the human workforce to focus on value-adding tasks. An RPA bot can handle these repetitive data entry tasks more accurately than a human, thus minimizing errors. Companies like EdgeVerve, has deployed a revolutionary RPA software for banks and financial firms across systems, thereby increasing operational productivity and intelligent security.
The pressure to reduce costs
RPA in the financial services is gaining traction as it helps in significant cost savings and reduces operational costs by freeing up humans to focus on more value-added tasks. As the financial service sector is highly regulated, automating repetitive tasks can bring about 25-50% cost savings. Automating manual processes helps improve speed, accuracy, consistency, and efficiency.
It helps financial firms realize cost reductions in various processes, thereby increasing revenue in the long run. But RPA as a tool goes beyond cost-cutting, creating value to the customers.
Increase in customer satisfaction
Though customers view security and reliability as the top benefits when choosing a bank, customer experience is what makes them stay. By leveraging automation capabilities, financial services firms have seen a quicker time-to-market and improvement in customer interaction. Fully integrating RPA helps enterprises address the challenges and reap the rewards of automation-generated revenue.
Enterprises are also seeing a spike in customer satisfaction with the implementation of intelligent automation. Many financial services firms and banks are looking to deploy cutting-edge automation technologies to enhance customer experience, with an emphasis on transforming both front and back-office functions. Chatbots bring about real-time customer assistance in ways we’ve never imagined before, addressing concerns of the customers as quickly as possible. Automation creates a new standard wherein banking services are a breeze — from credit card payments to claims processing.
We can conclude by saying that RPA is the new wave for the future of financial services that go beyond human efficiency. Establishing a structured approach, defining a clear automation roadmap, setting up an RPA operating model or framework, and creating an RPA Center of Excellence will help in the successful rollout of RPA programs.
Simply put, Automation will enable financial services firms to cut down on costs significantly, thereby freeing up their employees to focus on higher-value tasks and creating bottom-line growth.