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As has happened in other sectors, The year of the lockdown due to COVID-19 was essential to move faster and apply the RPA, as well as other technologies, to a bank's core processes.
According to Gartner, the pandemic has catalyzed business initiatives to adapt to the demands of employees and customers and Making digital options the future of banking services. In an increasingly saturated market, especially since the widespread adoption of virtual banking, financial organizations must find ways to provide the best possible user experience to their customers.
RPA in the banking sector represents a potential market that would exceed 1.12 billion dollars in 2025.
Importance of hyperautomation in the banking sector
Robotic process automation allows banks and financial organizations reduce manual efforts, provide better compliance, mitigate risks and improve the experience general consumer. All this without the need for additional infrastructure along with its low-code approach.
The main objective of RPA in the banking sector is to assist in the processing of that banking activity of a repetitive nature. RPA helps banks and financial institutions to increase your productivity by engaging customers in real time and taking advantage of the immense benefits of bots.
RPA is an extensive process that requires employee training, structured input and governance. However, once properly configured and implemented, these RPA-based banking bots perform a large part of the system's actions: They can open applications, send emails, and copy and paste information from one banking system to another.
RPA helps banks and financial institutions increase their productivity by engaging customers in real time and taking advantage of the immense benefits of bots.
#Ahorro of time and costs
As in any other industry, cost savings are also critical to the banking industry. Banks and financial institutions can save 25-50% in processing time and cost.
For example, the approval of a mortgage loan goes through several checks: credit check, payment history, employment verification, and inspection. A minor error can slow down approval or denial. Because the process is based on a specific set of rules and checks, RPA can speed it up, eliminating the bottleneck, reducing processing time from days to minutes.
#Reducción of errors
Bank employees handle large volumes of customer data and manual processes are prone to error. Banks around the world are using RPA to minimize the manual processing of these enormous amounts of data and, consequently, reduce errors.
#Servicio to the Customer
The volume of daily customer inquiries at banks (ranging from balance inquiries to general account information) is enormous, making it difficult for staff to respond to them quickly. RPA tools allow banks to automate rule-based processes to effectively respond to queries in real time, which substantially reduces response time.
Banks and financial institutions can save 25-50% of processing time and cost.
Bank operating processes that are most automated
The digital transformation of banks has been under way for years and many tasks have been automated.. These are the bank's operational processes where RPA is most commonly applied:
#Servicio and customer support
Since banks deal with multiple inquiries, from bank fraud to account or loan inquiries, it is difficult to address them in a short time. RPA can automate rule-based processes to answer queries in real time and reduce response time to seconds, freeing up human resources for more critical tasks that require intelligence and human decision-making capacity.
Automation also helps reduce the time needed to verify customer details from disparate systems and incorporate them. The reduction in waiting periods has helped banks to improve their customer relationships.
Onboarding customers in banks, for example, is a long and lengthy process; mainly due to several documents that require manual verification. RPA can make the process much easier by capture data from KYC documents (Know Your Customer) using the optical character recognition (OCR) technique.
This data can be compared with the information provided by the customer in the form. If there are no discrepancies, the data is automatically entered into the customer management portal. RPA automation in customer onboarding not only helps avoid manual errors, but it also saves employees a lot of time and effort and improves new customer satisfaction.
RPA can automate rule-based processes to answer queries in real time and reduce response time to seconds.
#Generación for reports
Banks must prepare reports and present them to their stakeholders to show their performance.
RPA systems provide data in multiple formats and can create reports by automatically completing the available report format to create error-free documents in a minimum amount of time.
An example: banks must Keep the Major Book up to date with information on financial statements, revenues, assets, liabilities, expenses and revenues that are used to prepare financial statements... These are documents that are accessible to the public, interested parties and the media. Considering the amount of detailed information, errors in reports can seriously affect the bank's image.
The bank needs to update the information of the multiple legacy systems, since these systems cannot be integrated, verified and ensure that the General Ledger does not contain errors. At this point, the RPA comes to the rescue. Being independent of technology, it can integrate data from multiple legacy systems to present them in the required format even if the data in the systems are not in the same format.
Being independent of technology, RPA can integrate data from multiple legacy systems to present them in the required format.
#Detección of fraud and money laundering operations
RPA technology makes it possible to analyze large volumes of banking transactions and detect cases of fraud or money laundering.
With the introduction of digital systems, one of the main concerns of banks is fraud. It's really difficult for financial institutions to track all transactions to flag potential fraudulent action. At this point, automation can track transactions and alert to possible patterns of fraudulent transactions in real time, reducing the delay in responding. In certain cases, you can even prevent fraud by blocking accounts and stopping transactions.
In addition, bots automatically prepare reports for bank audits related to the prevention of fraud and money laundering or the validation of customer information.
Regulatory #Cumplimiento
Automation makes it easier for banks to adhere to the mandatory rules that these organizations must follow. According to Accenture,73% of CFOs believe that RPA is a key enabler in regulatory compliance. Automation helps increase productivity by being operational 24x7, improving the quality of the compliance process and increasing employee satisfaction by eliminating monotonous tasks.
The bots automatically prepare reports for bank audits related to the prevention of fraud and money laundering.
#Cuentas to pay
Accounts payable is a simple but monotonous process in the banking system. It requires extracting information from the supplier, validating it and then processing the payment, all of which do not require any human intelligence.
With the help of optical character recognition (OCR) solutions, robotic process automation can solve this problem. OCR can read the supplier's information in the digital copy of the physical form and provide information to the automation system.The RPA will validate the data with the system information and will process the payment. If an error occurs, the automation itself can notify you.
#Procesos of KYC (Know Your Customer) or KYB (Know Your Business)
Know Your Customer (KYC) is a mandatory process that banks must apply to each user and that includes numerous validations to carry out the necessary controls. According to Thomson Reuters, banks spend more than $384 million a year complying with the KYC process.
Automation makes it possible to collect customer information in seconds, analyze and validate it, reducing resources and eliminating errors.
Taking into account the cost of the manual process, banks have started using automation to validate customer data. Thanks to the increased accuracy, banks can complete the process with minimal errors and personnel.
Thanks to the increased accuracy of the RPA, banks can complete the KYC or KYB process with minimal errors and staff.
#Creación of bank accounts
The customer experience can be greatly improved with the use of RPA technology for the creation of bank accounts. A bot can process the information provided by the customer and configure the account automatically.
#Gestión of loans
Bank loans are one of the most popular products. Its management requires the analysis of the documentation provided by customers for assess solvency when repaying the loan. For a long time, this process has been done manually, but currently automation combined with artificial intelligence is used, so that software bots analyze the information, detect the missing data and study all the data to make the decision to grant the loan. Son processes that instead of taking days or months, as was the case years ago, now last about 10-15 minutes.
#Gestión for credit cards
Previously, it took weeks for a bank to validate and approve a credit card request, causing customer dissatisfaction that sometimes led them to cancel it. With the help of automation,banks can speed up and simplify the process of sending credit cards. In just a few hours, the automation software collects customer documents, performs credit and background checks, and makes a decision based on established parameters as to whether the interested party is eligible for a credit card or not.
Automation reduces the time and resources needed to manage bank accounts, loans and credit cards.
#Gestión for mortgages
Mortgage applications are another service that banks must attend to more frequently. To grant a mortgage, data from employment contracts, payroll, income, VAT or Corporate Tax returns must be analyzed. It is a repetitive, tedious process in which many hours and days are spent if done manually. Automation accelerates these operational processes of a bank and increases the satisfaction of customers who apply for mortgages as their management accelerates.
#Proceso account closure
There can be several reasons for closing accounts, and one of them is when a customer has not provided the required documents. With automation, it's easy to track those accounts, send automatic notifications and schedule calls for required document submissions. RPA can also help banks close accounts in exceptional scenarios, such as customers not providing KYC documents.
Automation speeds up a bank's operational processes and increases the satisfaction of customers who apply for mortgages by accelerating their management.
#Conciliación banking
Banks can apply RPA technology to bank reconciliation to prevent their customers from wasting time searching for moves to verify payments and income.
#Integración of legacy systems
Banking institutions are characterized by using various legacy systems that are difficult to replace or upgrade due to the risk of losing data. When a bank uses several databases or applications, it can be used automation software that integrates all legacy systems so that they are unified, there is no duplication of information and errors are avoided.
When a bank uses multiple databases or applications, automation software can be used that integrates all legacy systems.
#Recursos Humans
The automation of the human resources area is transversal to any sector, and banking is no stranger to this. With its implementation, benefits can be obtained such as improved productivity thanks to rapid data processing and exchangeS or the savings in storage and printing costs associated with paper-based processing. efficient hiring at an optimal operating cost and collaboration with other stakeholders to hire, train and retain qualified labor is another point to consider.
Also, thanks to automation, it is possible to have more time to analyze human resources data for making intelligent business decisions.
Efficient hiring at an optimal operating cost is one of the benefits that can be obtained from the automation of human resources in banking.
How to apply hyperautomation in banking
The implementation of automation in banking generally begins with the identification of accurate and feasible processes. It is essential for banks and financial companies. select the right processes, evaluate them based on the overall impact, create a use case and prepare an execution strategy.
#Evaluación exhaustive
First, it is crucial to conduct a thorough evaluation and detailed analysis to select the processes that are suitable for implementing RPA. Turns out It is advisable to create a list of the main operational problems that can be addressed and solve through automation and then evaluate its impact and viability.
#Hacer a business case (use)
In the next step, it is important to calculate the cost component and the efficiency gains that the implementation of automation will generate. To do this, it is necessary to carry out a quick comparison of RPA benefits based on several metricss such as time, efficiency, resource utilization and efforts. In addition, it is necessary set attainable and realistic goals in terms of ROI (return on investment) and cost savings to avoid disappointment due to misaligned expectations.
#Preparar a comprehensive execution strategy
Choosing an appropriate operating model based on the organization's requirements is critical. At this stage, it is also crucialidentify the right partner for implementing end-to-end RPA, which would include the planning, implementation and support phases.
Keys to successful automation in banking: selecting the right processes, evaluating them based on the overall impact, creating a use case and preparing an execution strategy together with a trusted partner.
Adea Service
Adea can become a long-term partner with extensive experience in implementing intelligent automation in the banking and finance sector. We maintain constant knowledge of emerging technologies so that organizations advance their digital agenda and can improve their workflows and, consequently, their productivity.
Since 1999, at Adea, we have been designing document management and process optimization strategies tailored to each organization. Throughout all these years, our commitment to innovation and continuous commitment to the most advanced technology has allowed us to accompany our clients in their digital transformation, also helping them to comply with regulations related to data processing and facilitating the management of their internal processes in the most agile, efficient and personalized way.
Our experience in document management, facilities and state-of-the-art technology allows us to offer a fully fluid service along the entire value chain: from the design of automated processes and their technological implementation to the custody, management and destruction of the physical documents involved.
