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Automation has emerged as one of the most significant technological advancements of the 21st century. As industries worldwide have started using automation, financial institutions face increasing pressure to become more efficient, cut costs, and improve productivity. To meet these demands, many are turning to Robotic Process Automation (RPA) to smoothen their operations. RPA automates repetitive tasks, freeing employees to focus on higher-value work requiring critical decision-making. According to NASSCOM, RPA implementation can reduce onshore operational costs by 35-65% and offshore delivery costs by 10-30%, making it a powerful tool for financial services optimization.
Why Financial Services Robotic Process Automation?
Adopting financial services robotic process automation is helping financial institutions boost their efficiency and optimize the usage of their resources.
The variety of tasks that RPA helps financial institutes to perform better is listed below
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Automatic Report Generation
Banks are regularly required to generate reports for frauds in the form of suspicious activity reports (SARs). Checking and filling SARs manually can be a very tedious task. The application of RPAs with natural language generation capabilities can fasten the process of filling SARs with the required information. This will lead to a reduction in the cost of operation and also help free up the workforce to take on tasks that require more human intervention.
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Onboarding Customers
Customer Onboarding is another long and tedious process mainly because numerous documents are required for manual verification. Using RPA tools to extract the data from Know Your Customer (KYC) using Optical Character Recognition (OCR) and matching it with the customer-provided data can automate the entire process. This data can be automatically entered into the customer management portal if no issues are found. Thus saving time and effort.
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Opening New Accounts
RPA has made accounts much more straightforward, quick, and accurate. It does that by directly eliminating errors that may exist between the core banking system and new account opening requests.
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Mortgage Lending
RPA can perform various functions that are crucial to the mortgage lending process including loan initiation, document processing, quality control, etc. It helps finish the task faster enhancing customer satisfaction which is good for business. It also allows employees from doing the manual functions and focus more on other essential tasks.
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Processing Loans
Loan processing has always needed more optimization considering how long it takes to process them. Proper automation can bring loan processing down to 10-15 minutes to complete by going through documents and information to decide the eligibility of the customers, which is manual labour intensive by nature. It can help reduce workloads on employees and also help businesses gain customer satisfaction.
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Customer Service
Customer queries have a very low turnaround time due to their large volume and difficulty to respond. RPA tools can automate such rule-based functions and effectively respond to them in real-time, thereby improving the turnaround time.
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Processing Credit Cards
Implementing RPA can make it possible to take quick decisions on credit card approval or disapproval with a rule-based approach. This can reduce the time consumed in extensive validation checks that make this process long and cumbersome.
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Account Closing Process
Banks face an enormous amount of account closing requests per month. This is primarily caused by non-compliant customers. RPA tools can solve this problem by easily tracking such customers and sending them automatically generated notifications for submitting required documents.
Read more on, Digital Transformation in retail.
Few Examples of Financial Service Companies That Use RPA
- Zurich, a swiss company with operations globally has freed up to 40% of its commercial underwriter process by implementing RPA. It has allowed the company to focus on high-value tasks. The pilot RPA program of Zurich has realized a cost reduction of 50%, leading the company to implement RPA further.
- RPA changing banking for OCBC, a Singaporean bank is another success story. OCBC was able to reduce the amount of time taken to re-price home loans from 45 minutes to 1 minute with the help of RPA.
- Automating their processes has enabled Sumimoto Mitsui, a Japanese financial institution to cut out 400,000 hours of manual labor for employees.
Future Trends in RPA for Financial Services
Adding a future outlook on RPA adoption can make the content more forward-thinking. Some key trends:
- Hyperautomation: Combining RPA with AI and machine learning for smarter automation.
- Intelligent Process Automation (IPA): AI-powered automation for more complex tasks.
- Blockchain Integration: Using blockchain with RPA to increase security in financial transactions.
- Voice and Chatbot Automation: AI-powered chatbots handling financial queries efficiently.
Why Choose Intone for Financial Services Robotic Process Automation?
A 2018 McKinsey study found that existing technologies can fully automate 42% and mostly automate 19% of financial activities in business operations. Robotic Process Automation (RPA) helps optimize business operations, saving time and costs while enhancing customer satisfaction and proactive engagement. Intone, a trusted RPA provider, offers advanced front-end automation for superior customer experiences and back-end RPA to handle repetitive tasks, freeing employees for higher-value work. Our solutions ensure higher accuracy, multilingual support, and advanced NLP with 85%+ accuracy. We provide seamless omnichannel integration, enterprise-grade 256-bit encryption, and robust data anonymization for enhanced security.
Check out how Intone can help you streamline your manual business process with Robotic Process Automation solutions.
References:https://www.xenonstack.com/blog/rpa-for-financial-services
https://www.uipath.com/rpa/robotic-process-automation
https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/bots-algorithms-and-the-future-of-the-finance-function#
https://internationalbanker.com/technology/the-impact-of-robotic-process-automation-on-financial-services/
Image by Nattanan Kanchanaprat from Pixabay