Banks and financial institutions need constant evolution to remain competitive in the increasingly saturated banking and financial sector. These institutions are under constant pressure to optimize their services by managing costs and boosting productivity. However, they face a lot of challenges due to a lack of skilled resources to increase efficiency.
Robotic Process Automation In Banking and Finance
Robotics in banking & finance refers to the use of robotic process automation software to help increase efficiency in the banking sector. This is done by installing desktop and end-user device-level software robots and building AI virtual assistants.
RPA helps in increasing efficiency and reducing costs in this industry by using a services-through-software model.
Benefits of RPA in Banking and Finance
There are various benefits of implementing RPA in the banking and financial services industry. Some of them are:
Faster implementation
RPA tools provide drag-and-drop technology to automate banking processes. This makes the implementation and maintenance of automation workflows faster with minimum to no coding requirements.
Increased operational efficiency
Setting up RPA in banks and financial institutions can help make their operational processes more efficient, accurate, and productive.
Scalability
Robots are highly scalable and can manage high volumes of work efficiently. RPA allows adding more robots during peak hours to manage the workload efficiently and respond to any situation at the earliest. This technology also helps with all the daily mundane tasks so the employees can focus on important strategies to grow the business.
Cost-effectiveness
Similar to any other industry, cost-saving is critical to the banking industry as well. Banks and financial institutions can look at saving around 25-50% of processing time and cost.
Availability
Unlike humans, robots do not need to take breaks. They’re available 24/7 to complete any tasks given to them. They help in achieving high accuracy at lower costs, reducing the risk of human errors.
Risk and compliance reporting
RPA in banking and financial institutions helps generate full audit trails for every process. This helps in reducing business risk and maintaining high process compliance.
Zero infrastructure cost
RPA has UI automation capabilities and its implementation in financial services does not require any major changes in the infrastructure. If the RPA is cloud-based, then the hardware and maintenance costs are further reduced.
Business growth with legacy data
RPA implementation allows banks and financial institutions to use new as well as legacy data to bridge the gaps between processes. This availability of existing data and initiation in one system helps banks to create better reports for business growth. These reports are accurate and created faster with RPA.
Summing Up
The primary reason for setting up RPA is to get help with mundane and repetitive tasks. This helps banks increase their productivity by taking care of daily activities.
Although implementing RPA is an extensive process, once it is set up, it can take complete control of the system and increase the efficiency of work significantly.
