RPA in Banking
RPA in Banking
Many banks are looking for quick and cheap alternatives that can deliver short-term wins while major initiatives are underway. RPA can help bridge this gap as a relatively inexpensive and even temporary alternative, both for customer-facing and middle- and back-office functions. The backend operations of banks can be transformed to deliver quality output at considerably reduced costs.
This represents an easy win for many banks given the number of different applications that need to be accessed to provide the required data for reporting. For example, we’re working with banks to create fiduciary risk management reporting capabilities, which involves going through multiple e-mail systems, external websites and broker statements to generate reports and highlight anomalies. Use of RPA has automated 90% of these processes, saving significant costs and time.
Both AML and KYC are rules- and data-intensive processes, making them good candidates for RPA. RPA has proved a better option than pure-play business process management solutions in terms of cost and time to implement.
Several accounting and reporting processes involve repetitive daily activity that requires capturing data from multiple systems. These are well-suited for rules-based RPA.
This is another area that’s ripe for significant disruption and transformation through automation and digital transformation. Given the number of third-party entities in the mortgage value chain, the significant use of paper (any proud owner of a mortgage can relate to this!) and the fragmented nature of the systems means RPA can play a key role in providing efficiencies while the industry undertakes a wider transformation.
Even though reconciliation is already largely automated in most cases, the process to investigate and resolve reconcillation breaks is manual. RPA with predictive algorithms to reduce exceptions and automate the resolution process.
Another area where RPA is beneficial to the financial industry is in compliance. Like the insurance field, banks and other financial institutions are required to constantly maintain a high level of regulatory compliance. Employees must constantly check information against industry and government regulations and also stay up to speed on any changes, which can and do occur quite frequently. Because robotic process automation handles all of the documentation and eliminates errors, audits become much less cumbersome. Furthermore, this technology is capable of being altered rapidly, making it ideal for a field that evolves so often.
With robotic process automation, bank employees will know where information is at all times and be able to access it at the click of a button, all thanks to the robot software running behind the scenes. Additionally, employing RPA can create a much more transparent environment in which data for every single transaction is properly recorded, categorized and stored for quick and easy retrieval and review at any time on demand.