
Key Banking Functions Getting Transformed by RPA
CIO Review APAC | Wednesday, May 12, 2021

Several processes within a bank can be automated with RPA allowing the teams to engage with the customers.
FREMONT, CA: Robotic Process Automation (RPA) is evolving rapidly and changing every industry. Businesses are recognizing its potential and integrating it into their daily operations to remain competitive. And, the banking sector is no exception. Banks are increasingly embracing RPA to become agile, competitive, and profitable. Rising customer expectations are revamping the idea of banking from conventional to convenient. Below are the banking functions getting transformed by RPA.
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The banking sector deals with massive data. Manual processing of this data is a complex and error-prone operation. Further, the input of data from legacy software to novel models delays daily operations. RPA facilitates seamless communication and transfer of data from legacy to newer software. It automates menial and repetitive activities, thereby mitigating the turnaround time in processing a request. Banks are implementing RPA to save labor costs and attain operational efficiency.
Customer Service
Banks deal with many queries every day, ranging from general data to account inquiries to complaints and many more. If a bank needs to be seen as customer-centric, it is essential to remediate all these queries. RPA assists in resolving the low priority queries, freeing up the staff to focus on high priority queries that need human intelligence. This mitigates the waiting period, and quick grievance redressal assists banks in enhancing customer relations.
Risk and Compliance Management
The banking sector deals with complex and expansive regulations, deadlines, spanning KYC, financial reports, risk evaluation reports, periodic disclosures, etc. With the stricter regulatory guidelines, banks are looking at RPA solutions to boost efficiency and reduce compliance costs. RPA solutions automate manual and repetitive reporting needs of upcoming and existing regulations that mandate frequent disclosures.
Loan processing
Underwriting is the most vital step in lending. It means predicting if a borrower can payback. However, banks get it wrong because they depend on inaccurate information. The manual process of gathering information is tedious, complex, and mistake-prone. RPA powered-software allows the compilation of a prospect’s record from several systems, websites, channels, and service providers. Once the data is gathered, it is entered into a firm’s systems for underwriters to analyze it.
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