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RPA: Optimising People, Processes And Productivity

In an increasingly saturated banking and financial sector, it has become imperative for banks and other financial institutions to continuously evolve, remain competitive and provide excellent user experiences to their customers.

Today, banks are under enormous pressure to optimize its spends and improve productivity. Another challenge that banks face is the scarcity of skilled resources. Banks also need to have efficiency in their processes, while containing personnel costs which has paved the way for the adoption of Robotic Process Automation (RPA).

McKinsey foresees a second wave of automation in the next couple of years where machines and software bots will execute anywhere between 10–25% of bank functions, which will allow for an increased efficiency and provide the workforce with an opportunity to focus on high-value tasks and projects.

Reimagining business with RPA and its deployment in banks

The amalgamation of technology with service industry and human capabilities helps reimagine business processes, and deliver an optimal business outcome for the various stakeholders. For instance, bots help take charge of operational processes that involve opening of applications, transferring information, responding and interacting on emails, and numerous other repetitive tasks that would require a large workforce, which could be considered as time consuming and underproductive at an organizational level.

Most processes in banks are known to be time consuming and cumbersome, which negatively affects customer experience and satisfaction. Implementing RPA in banking processes provides an opportunity to automate certain critical processes such as:

Level one customer service: The sheer volume of customer queries in banks, which could range from checking balance or generic account information) is enormous, making it difficult for the workforce to respond with a low turnaround time. With RPA these processes can be automated, queries can be addressed in real time, therefore reducing turnaround time and increasing customer satisfaction, as well as utilizing the workforce for more productive tasks.

KYCs and anti-money laundering: While both KYCs and anti-money laundering processes are rule and data intensive, use of RPA optimises the inspection of documents and quickly highlights any irregularities, optimising the digitization process of any organization.

Account opening process: RPA ensures a quicker and more simple account opening process. It helps reduce downstream errors, along with enhanced system data quality.

Account closure process: Banks receive a number of requests for account closures, for a number of reasons. One reason is non-compliance in submitting all mandatory documents. RPA helps to easily track such accounts, and sends them an automated message and reminders for the submission of such documents.

Automating staff training: Tasks can be set up and online training courses created. Once new employees join, the onboarding/training program can be initiated, allowing employees to work through the training at their own pace.

Automation of electronic funds transfer: By automating fund transfers, the bots act as a bridge between legacy and modern systems, and making relevant updates wherever necessary and eliminating errors that could occur through human intervention.

Managing digital documents: Some of the best minds in the organization may spend most of their time in managing mundane tasks such as managing letters, forms or invoices. Processing, analysing, extraction, entering and storing of documents can be automated, thus helping the workforce focus on value add processes. RPA can also help in report generation.

Streamlining loan applications: Every financial institution wants to shorten the amount of time taken to process loans, from initial application to final approval, loans involve multiple departments and numerous human touchpoints. RPA can help verify customer eligibility based on predefined criteria, forward the application for necessary approvals, notify the customer about the approval, etc.

Credit card processing: Traditionally, processing a credit card application could take weeks. The long waiting period can cause dissatisfaction in the customer, thereby impacting the bank. Now, with the help of RPA, banks can process these applications in a matter of hours. The RPA can talk to multiple systems simultaneously to validate the documents, conduct background checks, check credit scores and arrive at a decision to approve or disapprove the application.

Benefits of RPA in banking

Cost-effective solution – Cost saving is critical to every industry, and banks too can emphasize on cost cutting in an increasingly competitive environment. A report by KPMG mentions that RPA can help cut costs by up to 75% for financial services

Scalability – The fact that robots are highly scalable means it allows for higher volume of tasks to be managed during peak seasons. This further allows banks to strategize on innovative solutions to grow their business by freeing employees from operational tasks

Enhanced customer experience – RPA allows for banks to respond to situations or concerns in minimal time, thus resulting in a smooth customer experience

Highly adaptable – Processes can undergo numerous changes over time. An inflexible system can make it challenging to incorporate the proposed changes. Whereas, RPA bots are flexible to integrate the changes in a matter of a week

Increased efficiency – Once RPA has been implemented, it allows banks to make their processes faster and more productive. It also provides a higher quality of experience as human errors are minimised

Stay ahead of the curve by adopting RPA measures

Some banks have already adopted RPA processes as part of their operations. If implemented, RPA can genuinely transform the banking sector by automating manual, repetitive and time consuming tasks. And the resulting cause of such automations can be witnessed in the form of enhanced productivity and increase in customer satisfaction.

The ability of RPA to reduce processing time and errors, enhance scalability and compliance, enabling staff to focus on value-add tasks are a few factors for its adoption by the financial sector. However, while choosing to embark on this journey, it is also important to choose the right partner to develop the technology platform and also its implementation. It is important to choose a partner that has a cognitive AI roadmap, as it determines the partner’s orientation to create automation solutions that can easily adapt to innovations in AI.

Finonyx provides a holistic approach to transform your banking processes, while ensuring that complexities are understood, risks identified and processes to mitigate them are also in place. The advantage of partnering with Finonyx stems from our in-depth domain knowledge, technology expertise and a deep-dive into the regional requirements. We ensure a strategic transformation of our clients’ business processes, ensuring cost benefits while also enhancing speed, quality, continuity and security.

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