In an industry where 34% of organizations still rely on manual processes, the case for robotic process automation (RPA) in banking is compelling. According to experts, human interaction accounts for 2-5 errors per 100 tasks. These errors slow your operations, increase rework and put your bank at risk of non-compliance and hefty fines, not to mention frustrating your customers and placing your reputation at risk.
Robotic process automation (RPA) uses intelligent software “robots” to automate repetitive, mundane tasks of collecting and inputting data between portals, websites, internal applications and bank systems. By leveraging RPA, banks can achieve productivity gains of 35-50%—compounded across thousands of transactions—enabling greater capacity and agility. Robotic process automation (RPA) allows your organization to increase efficiencies, eliminate costly errors and free up your employees and knowledge workers for more valuable and rewarding work.
Robotic process automation (RPA) is complementary to systems that your bank may already have in place—for example, to automatically capture documents, extract data or route loan files—to further improve processes. RPA can also eliminate any activities that are still being handled manually by your employees that involve external websites and portals, such as complying with Know Your Customer (KYC) regulations.
While modern banking systems can be integrated via APIs and web services, it may not always be feasible. According to Image and Data Manager (IDM): “RPA is quicker and more cost-effective to deploy than traditional IT solutions. RPA offers non-intrusive, relatively easy integration with legacy IT applications, and this opens up automation possibilities for process efficiencies that previously were considered cost-prohibitive due to the IT effort required.”
When citing “examples of RPA being used for front-, middle- and back-office deployment included for banking and insurance,” Gartner stated, “Due to the major cost-reduction pressures in these industries, these organizations have been the highest adopters of RPA tools to date. Examples of uses include moving data for claims processing, predominantly from customer facing websites; card management for issuing replacements for lost or stolen cards, and reversal of card charges; and mortgage processing, with the resubmission of failed payments.”
When you think about it, core retail banking is all about repeatable actions and processes, so robotic process automation (RPA) is a natural fit in facilitating the connection between both environments, which allows the back office to “catch up” to front office processes.