The dramatic technological revolution makes many people optimistic of what tomorrow holds. This optimism also rings true in the banking sector. While the workers in the banks keep their confidence in technology, little do they understand that many of them will be redundant.
It is no doubt that Robotic Process Automation (RPA) will replace humans and . Digital solution providers explain that a robot can work for 24/7. Over 70% of bank operations can undergo RPA. The digital work that gas stations experienced four decades ago will become the norm at every activity sector of the bank.
Nevertheless, RPA comes handy with many benefits that outdo the loss of jobs disadvantage.
Benefits of RPA
Before further ado, let’s understand what RPA is. Many would think that RPA will streamline processes by identifying and eliminating bottlenecks. This is not the case, RPA will speed up process execution. From its definition, RPA is a technology that replicates computer-human interaction. It speeds up processes through automation of individual repetitive jobs that human beings would otherwise do manually.
Here are the benefits of RPA to the banking sector.
1. Enhanced Efficiency in Operations
Banking is a fundamental aspect of the whole society and every business. An efficient banking system translates to top notch management of societal money. Many may view RPA as the onset of bank system sophistication, but it’s not the case. Banks only require training in the initial phase and setting up infrastructure, but from there, they attain a sustainable solution. Once the installation is complete, functional efficiency will improve in the first year of implementation.
2. High Adaptability
Long gone will be the days when banks are dysfunctional while trying to adapt to change. Not to mention, the human nature of status quo resisting change will be no more. There will be high adaptability towards changes. RPA bots are quick enough and highly flexible to integrate the changes.
3. Cost-effectiveness
RPA is a cost-saving solution that every bank should embrace. Earlier, we established that RPA would replace human employees. Research shows that this technology will reduce cost by 25%-50%. Thus, RPA supports cost savings, particularly in the competitive business environment.
4. Support Quick-paced Business
Like any other technological development, RPA helps businesses expedite to the fullest. A bank can respond quickly to a situation or a concern. Thus, it facilitates enhanced customer service. Also, as the bots take care of mundane tasks, banks can concentrate on utilizing resources maximumly to improve productivity.
5. Enhanced Decision Making
RPA improves strategy development by availing real-time data and numbers. Therefore, automation of processes goes a long way in strengthening decision making while improving operational efficiency.
6. Reduced Coding
RPA is a modern technology that offers hassle-free integration and implementation. As opposed to the traditional automation structure that required large-scale coding, RPA requires less coding. Therefore, it is easier to use and maintain.
Uses of RPA in the Banks
Having seen the benefits of RPA, we can now ask ourselves, “Which are the areas most relevant for RPA application?” Automation can take place anywhere, but it is more often in the following areas among others.
● Anti-money Laundering (AML) and Know Your Customer (KYC)
Typically, banks are used to Business Process Management Solutions (BPMS) for inspecting suspicious transactions disclosed by AML systems. RPA comes to streamline AML functionality through automation and works more efficiently than BPMS in terms of time and cost.
RPA is also a relief for the complex KYC process that sometimes involves over 1000 FTEs checks on customers. It is a process that cost banks over $384 million per annum, according to Thomson Reuters. RPA has improved the KYC process by increasing accuracy. Banks no longer need the FTEs mechanism, and the process requires few people.
● Compliance Reporting
RPA offers an easy win to banks considering the vast different applications banks need to access to get the required data. Use of RPA helps to automate about 90% of these processes. Thus, it is a key enabler in compliance.
An illustrative example, in this case, can be creating a fiduciary risk management reporting capabilities. It would involve accessing multiple email systems, broker statements and external websites to generate reports and point out irregularities.
● Customer Service
There is a high volume of simple, repetitive tasks that take place at the customer care center. This phenomenon translates to longer wait time for customers. They would have to wait for a rep to retrieve data or request for information earlier provided during a call. RPA comes handy to perfect customer experience. It resolves common issues like automating multi-steps complex tasks and resetting a password.
RPA fulfills such tasks within seconds. It also helps resolve low-priority queries and the customer service team can have time to focus on improving customer experience.
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