Robotic process automation

Automating processes is the order of the day in the world we live in. Activities that used to be done solely by humans are now either totally or partially handed to robots. There is the notion that robots are taking over the jobs of humans. It is not just a cliché, it is accurate, and we have the robotic process automation technology to thank for it.

Robotic process automation defined?

Robotic process automation can be shorted as RPA, and this is a technology that involved the automation of various business processes to ensure efficiency and effectiveness. Methods that used to be handled by humans are now committed to the care of software robots and artificially intelligent robots.

As of today, this technology allows just about anybody to create a set of instructions for a digital system, to carry out business processes, just as humans would carry it out. This process is better functional when the process in question is designed to be repeated. This RPA system can capture data just as humans would do, by making use of their user interface. These systems can interpret data they are exposed to, curate a response, and communicate it accordingly to ensure the functionality of a process. These systems work twenty-four hours a day and are not prone to mistake as humans might. And the cost of maintaining this system is way lower than the cost incurred in the hiring of an employee for the same process.

What makes RPA different from traditional IT solutions?

Unlike traditional IT solutions, with RPA, organizations can automate processes and get things done faster and more cost-effectively. The RPA systems are also conservative, as they do not tamper with the existing infrastructure of an organization, but only leverage on it in the performance of their duties.

Unlike other IT infrastructures, RPA does not need additional cost to ensure efficiency nor compliance. These are simply by-products of the activity of the automation.

How do RPA systems work?

RPA system is adapted and designed to mimic the various actions that can be taken by humans. The systems can on their own, log into your applications, change the location of multiple files and folders, perform actions on data and so many more things that are programmed into them.

Once the process is one that is repeated, automation is achievable. Automation has changed the ways we do things, the factory floor is being transformed with the advent of industrial robots, and bots have transformed the way things are being done in the office. Just as a white collar would perform activities, so also will the bot do.

Bot as a unit of automation

Bots are the very fundamental part of the automation ecosystem, and they can be run right from an employee’s desktop, or can also be run from the cloud. The very vital features of this fundamental part of automation are explained below;

• Integration:This is very key if the bot is going to perform its function efficiently. These bots can screen scrape and perform duties. However, to ensure the efficiency in their use, it is better to integrate them into the system. Hence, they would be less prone to errors. When they are integrated into the system, they have firsthand access to data and can use this in performing their function efficiently. 
• Interface: There is a need to program bots; hence, there is a need for programming interface or environment. It is easier to program RPAs, and there are means to program them without a single line of code. 

Management of bots through orchestration modules

By having a management console for your bot, you can quickly stop and analyze the activity of your bot. By doing this, you can monitor the process and manage the bot to ensure effectiveness.

• Handling of business exceptions: There will always be issues with your bot system, irrespective of how well and vastly programmed they are. The system needs to be designed in a way that when these exceptions are noted, they are transferred to human personnel who can attend to it, without further delay to the customer. 
• Analytical capacities:Bots designed with some frameworks can carry out advanced analysis of different combined data.

Advantages of Robotic Process automation

RPA has so much to offer a business or an organization, and the list is simply unending. Here are some perks that RPA can provide your business or organization

• Drastic reduction in cost: When tasks are automated in a company, there is a reduction in the cost of running processes. The maintenance of a software robot is also way cheaper than it would cost to retain an employee.
• Improved customer experience: Your customers have a worthwhile experience whenever they get to interact with the robotic software. This is a good one for your business or organization
• Reduction in operational risk: With the RPAs, there is a reduction in the possibility of errors, which is common in human. Errors can result in humans as a result of fatigue, or lack of knowledge. However, this is not so with robots.
• Improvement in the internal process: Robotic systems ensure efficiency, and this is an overall improvement of both internal and external processes. Reports are generated internally in an organization with the adopted RPA system, faster than it would if the order was otherwise human.
• They leverage on existing IT infrastructure: Adapting these systems for use don’t need you to tear down your whole IT system, they can function seamlessly on your existing system and structure.

Robotic Process Automation is a way for businesses to maximize resources and operate at optimal best. These various advantages have poised many movements to invest heavily in these systems.

How Robotic Process Automation Will Positively Impact the Banking Industry

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.

How Robo-Advisor Revolution Improves Customer Service in the Banking Sector

Robo-Advisor is a technology that many people associate with the financial industry. In the year 2018, ten years since its invention, several financial institutions around the World adopted it. Leading wealth management companies are now using it. In this article, we want to highlight how Robo-Advisors can be useful in the banking sector in enhancing customer service.

The question that may linger in one’s mind is what would be its offerings in the banking sector. Before we plunge into that, let’s understand the concrete definition of the Robo-Advisor.  Robo means automation that uses a mathematical algorithm to provide investment decision. Thus, it lacks human intervention. Advisor means wealth management services.

Therefore, Robo-Advisor in simple terms means an online portfolio management solution. It continues to gain popularity in the financial advisory market owing to improved results. For instance, it translates clients’ inputs into investment logic like proposing the right investment opportunities. Such glories continue to make Robo-Advisor technology elicit importance in the banking industry. 

Is Robo-Advisor the Missing Revolution to Meet Increased Customer Demands in the Banking Sector?

The Robo-Advisory have top-notch qualities that today’s customers want in the banking set-up. Customers are seeking web-based services, low-priced accessibilities, and transparency. This trend has made banks to shift their journey map in providing services. Though the Robo-wave may appear as a threat while it forces the banks to redesign, it’s worth embracing.

Thus, the banks should see beyond the threat and seek to leverage the benefits this technology offers. Several banks have already crossed to the Robo-Advisory environment. They claim their push to Robo-Advising integration stems from the desire to accommodate customers’ needs. Increased number of customers wants on-demand banking and personalization.

Such banks include Citizens Bank, a bank in America which introduced the Robo-Advisor services as early as 2017 through Sigfig a wealth management technology provider. The benefits that resulted from Robo-Advice suggested that Robo-Advisor was the element missing in the banking industry. Here are the major benefits of integrating traditional banking with Robo-Advisor.

1.    One-stop Solution for Investments and Banking

Bringing the Robo-Advisory to the bank set-up enables merging investments and banking, together. This is something many customers are happy to have, according to a Novantas report. They would enjoy an instant transfer of money from their banks to investment companies. They can make direct deposits of profits earned from their investments. Customers would only need a ‘Virtual Card’ to facilitate such transactions.

This development would serve as a savvy way of controlling clients’ free cash. No idle cash in the bank would go uninvested. It is a sure way of maximizing returns on clients’ assets. Blending of financial advisors with banks digitally brings ‘Platformification’ of financial services. Thus, customers don’t need to engage multiple platforms to access individual financial services. Wealth management and banking will be more aggregated.

2.    More Perceived Personalization of Services

With today’s customers’ inclination to personalized services, any business ethos that dilutes this phenomenon may appear irrelevant. Millennials are therefore adapting well to the Robo-banking services because of the prevailing human touch. Robo-Advisor combines human touch and algorithmic interactions. According to the report by MyPrivateBbanking, this is the reason why many Millenials are willing to use Robo services.

There is more experience of customer loyalty and satisfaction in the banks that are already within the Robo-Advisory landscape.

3.    Cost Reduction

Customers continue to experience reduced costs with Robo-Advisor technology.  There is a reduced cost of transactions as well as reduced advisory costs. When compared to human counterparts, this reduction can translate to about 0.5%. Therefore, this technology is an attraction to the underserved clients to embark on untapped opportunities. It thus promotes not only cost-efficiency, but also revenue maximization.

4.    General Convenience

The overall experience of customers is generally enhanced. For instance, customers can transact from external messaging apps like Whatsapp or Facebook messenger. This significantly reduces troubles for customers as they don’t necessarily need to use the bank’s portal for transactions. Robo-Advisors with chatbots further leverage customer service by generating meaningful insights on below-average areas.

For instance, customer challenges can be detected in real-time and resolution established. This also helps to identify latent customer needs and preempt them.  

5.    Efficient 24/7 Customer Service

Most banks rely on Robo-Advisor to tackle most customer queries such as cheque book requests, balance inquiries and more. Chatbots help employees function more efficiently; thus, they can find and view information more easily. Robo-Advisors can significantly reduce volumes by handling easier tasks around-the-clock. They give support during and outside of working hours. The human agents can then handle the small fraction of more difficult tasks.

Continued revolution of Robo-Advisors is expected to transform banking in a similar manner that internet transformed information industry. They should become an all-encompassing interface to revolutionize the way customers interact with the banks entirely. Thus, banks yet to leverage Robo-Advisors may lose out on significant revenues and also lag on customer experience.