Banking and finance sectors are facing competition from different virtual banking solutions. Traditional banking is becoming a thing of the past and people are moving to virtual apps for convenience. Hence, banks should focus on adopting new technologies for providing an excellent customer experience.
Financial institutions have a set of challenges like increasing costs and decreasing productivity. Another challenge is to improve efficiency in performing daily, mundane tasks for these institutions. Robotic Process Automation (RPA) is the solution to all the challenges that are foreseen and envisioned by the experts.
What is RPA?
Robotic Process Automation is the technology that emulates and integrates human interaction with digital systems or machines to execute a business process. This technology utilizes a user interface to capture data and manipulate machines just like humans. Repetitive tasks can be automated easily on the current systems by recording and interpreting trigger responses and communicating with other systems.
What is Finance Automation?
Finance automation is the act of automating financial processes and tasks that are repetitive in nature to perform them efficiently and at optimal costs by using artificial intelligence tools.
A research conducted by McKinsey & Company says, around 45% of the activities performed by individuals can be automated and performed efficiently by adapting technologies like AI and RPA.
Benefits of RPA in Finance and Banking
Working of banks is based on set operations, which sometimes take time to be completed. These lengthy processes can affect the productivity of the employees, and in turn, affect customer experience and other aspects regularly. Therefore, if there is any way a banking or financial institution can take a positive approach to solve this, they must. RPA is one such solution to all these problems.
There are many benefits of implementing RPA in the banking industry that can automate some critical tasks. Let us take a look at them:
Robots are best used for scaling your processes on the go when it is most needed. You can manage high volumes of work at peak hours especially by adding extra robots if needed. This will also help you finish the extra load of work in record time. Once you know that your daily, mundane tasks are taken care of by automation, you can allow your employees to work on something more constructive and take business decisions, efficiently.
When we hear about automation, the first thing that comes to our minds is the need for huge infrastructure to make it work. Well, RPA does not demand huge infrastructure and saves infrastructure costs. Rather, there is no infrastructure cost. The reason is RPA supports UI automation capabilities, making things easier.
Cost-saving is one of the major aspects of running any institution or organization successfully. The more they save more they can invest in engagement and other critical administrative and mandatory tasks. With automation, banks can save around 25-50% of processing time and as a result, cost.
Being a robot, all you need to do is assign them a task and they will keep performing it 24*7 if you wish them to. These robots can help you reduce manual errors and achieve high accuracy at low costs. You can do that by adding more robots if needed.
Leveraging legacy data
RPA automation is the next big thing in the banking revolution. It uses both legacy and new data to bridge the gap between processes. When all data is available in one single machine it becomes easier to create reports quickly and support business decision making.
Banking and financial institutions are slowly adopting various technologies like app-based virtual support and net banking. These steps have definitely increased productivity and helped in achieving improved customer satisfaction. However, the mundane daily tasks can further be automated using RPA to further benefit players in the banking and finance industry, in achieving their ultimate goals.