8 Real World Use Cases of Robotic Process Automation (RPA) in Banking

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According to CompuTools, the challenge to maximize bank efficiency is one of the top four that banks face, trying to remain competitive in an increasingly saturated market. In order to properly address this challenge, banks must find ways to improve customer experience, by, e.g., maintaining costs as low as possible as a way to deliver customer-friendly services, while not saving any effort in adjusting to high security levels.

With its potential to increase operational efficiency and productivity, to provide cost-effective solutions, and to engage customers in real time, RPA presents itself as the right solution. After a quick implementation requiring a minimal amount of coding, deployment of robotic process automation in banking may be precisely what is needed to address the need for efficiency upgrades.

Consider the fact that the implementation of RPA, besides being rather easy, can bring as much as 50% savings in overall costs.   

Real world use cases of robotic process automation in banking

The effects of the digital revolution are already noticeable across the banking industry. In order to assist you in grasping its manifestation in the real world, we will list 8 common application areas in the businesses carried on by banks.

1. Verification of customer information

Auto loan approvals and processing requires thorough verification of the data that customers provide. With the help of software robots, the time consuming process of verifying and validating customer data on government sites such as tax payments, DMV, or property-appraisal sites, can be performed much quicker than manually (i.e., in a matter of seconds). It also minimises the risk of error, and reduces the processing cost by 30 to 70 percent.

2. Account opening

Error-proof bots facilitate disposal of data transcription errors between customers’ requests for account opening and the core banking system. Because of this, not only are downstream errors practically eliminated, but the quality of system data is subsequently improved. The end result? The process is streamlined, more accurate, and completed much faster than by manual performance.

3. Loan processing

Typically, loan processing hinders banks’ efficiency because it takes a whole lot of time. By ‘typically’ we don’t mean only ‘when manually performed’, but also when other automation solutions are used. What RPA does, it eliminates altogether the need to copy and paste customer data between different banking systems.

As a consequence, the processing time is reduced from 30-40 minutes to 10-15 minutes. Software robots thus generate more accurate, quasi error free outcomes in a third of the time. This sounds like a practical definition of operational efficiency, doesn’t it?

4. Fraud detection

Cybersecurity is another primary concern for banks nowadays, when the increase in frauds should be acknowledged as a side effect of the introduction of digitization. In order to counter it, banks would have to track all the ever-growing number of transactions, and indicate those with a certain probability to be fraudulent. But this doesn’t sound like a reasonable thing to ask for.

What can RPA do about it? In the first place, the capacity for uninterrupted work makes bots able to actually track all transactions and to flag potential frauds in real-time. This leads to a significant reduction in the delay in response, and a consequential minimization of the effects of frauds for the banks. In specific cases, bots can even play a role in fraud prevention, by early detection followed by account blocking and transaction interruption. 

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5. Credit card processing

Validation of customer information and credit card approval used to take weeks previously. This made customers dissatisfied and involved significant costs for the bank. Because bots can scan through several systems at the same time, data such as required documents, background checks, credit checks, etc. can be validated much faster. Customers’ applications can thus be processed in a matter of hours. Since decisions regarding application approval are entirely rule based, bots can do this too.

6. Accounts payable

The process involves the extraction and validation of vendor information, followed by processing the payment. There is nothing too complex or complicated about this, and perhaps this is what makes accounts payable rather dull. But precisely because of this, it is the kind of job that software robots can do best, allowing human employees to focus on higher-status tasks.

The RPA system can receive information about the vendor, which can be read via optical character recognition (OCR) directly from the digital copy physical form. Bots will then check the information against the data that is already in the system, and either process the payment, or notify executives whenever discrepancies are encountered. 

7. Mortgage loan

Prior to being granted a mortgage loan, banks normally need up to 53 days to process everything carefully, to verify repayment history, and to do things like credit checks, employment verification, etc. Even small errors can increase the duration of these analyses.

The good news is that they are all rule based, which recommends loan origination and servicing as good use cases of robotic process automation. Software robots can perform in a quasi error free manner everything, from document preparation and valuations, to foreclosure, underwriting, or tax management in a matter of minutes, not days.

8. Front office interactions

The people who work as an ‘interface’ between the bank and its clients must be able to switch between multiple applications when communicating with the clients. By gathering together all the information that matters, and making it available to the bank’s customers onto one screen, bots can support employees’ multi-tasking efforts and allow them to better respond to customers’ needs.

This provides more client-oriented services, and allows the staff to become more efficient in so doing. Paradoxical as it may sound, automation makes people actually matter.

Conclusion

Whether you’re thinking about customer service, corporate loans, cybersecurity measures, etc., robotic process automation can bring them to completion in a third of the manual processing time, and perfectly accurate.

With this in mind, we wish to highlight once again the importance of being 100% clear with respect to the benefits you expect to derive from RPA deployment. Pay attention from the very beginning, whether you aim for increased efficiency or productivity, cost effectiveness, customer engagement, etc. Never lose track of the overarching objective to assess the situation with a critical eye, and estimate the results accordingly. You can read more on this here.

We end by mentioning once again that this is part of a series of articles about the particularities of RPA in different sectors like the public sector, hospitality, or contact centres, pragmatically oriented towards application areas. If you find the information useful, subscribe to the newsletter below to ensure that you stay updated with news about the fast-evolving intelligent automation services.