How Banking Automation is Transforming Financial Services
Automation reduces the need for your employees to perform rote, repetitive tasks. Instead, it frees them up to solve customers’ problems in their moment of need. Accordingly, Wells Fargo also introduced an AI-powered mobile app that is developed using predictive analytics. This intelligent Smartphone application alerts customers if their billing payments exceed the limit.
Banks have now started leveraging RPA to collect customer information, screen it, and perfectly validate it to reduce the considerable cost and resources. This empowers banks to complete the KYC process in a comparatively shorter duration with limited staff and minimal errors. According to a recent report published by Fortune Business Insights, the global robotic process automation market size is projected to reach USD 6.81 billion by the end of 2026.
What is robotic process automation (RPA) in banking?
These repetitive and rules-based tasks can be easily automated with RPA, enabling more than a 60% reduction in process turnaround time. Today, RPA has become an essential tool for most businesses, including banks. Amidst the COVID-19 situation, banks are looking for all the possible ways to cut costs and drive revenue growth. RPA in the banking industry is proving to be a key enabler of digital transformation. While retail and investment banks serve different customers, they face similar challenges.
You can avoid losses by being proactive in controlling and dealing with these challenges. Changes can be done to improve and fix existing business techniques and processes. Banking customers want their queries resolved quickly with a touch of personalization. For that, the customers are willing to interact with automated bots and systems too.
Labor Cost Reduction
The Bots can, however, send the records for additional verification if there are any anomalies. Because most physical interactions with clients are down or limited during the COVID-19 crisis, banks are dealing with a massive influx of inbound calls at their call centres. RPA tools and chatbots can assist with a large percentage of this traffic. Routine questions about account statements and transactions, for example, can be handled by Bots, while requests that require human decision-making are routed to the necessary knowledge workers. The global robotic process automation market is expected to reach USD 6.81 billion by the end of 2026, according to a recent analysis released by Fortune Business Insights.
RPA has perfectly streamlined the entire process of credit card processing, making the lives of banking staff and customers easy. It has led to widespread difficulties in the banking industry, with many institutions struggling to perform fundamental tasks, such as evaluating loan applications or handling payment exceptions. In the past, it would have taken weeks for a bank to validate a credit card application. Slow processing times led to dissatisfied customers, many of whom even became frustrated enough to cancel their applications. Now, the use of RPA has enabled banks to go through credit card applications and dispatch cards quickly.
Nividous Smart Bots with native AI and machine learning (ML) capabilities are deployed to automate several manual operations involved in the loan application process. The customer onboarding process for banks is highly daunting, primarily due to manual verifications of several identity documents. Know-Your-Customer (KYC), an integral part of the onboarding process, involves significant operational efforts for such document validations. Timesheets, vacation requests, training, new employee onboarding, and many HR processes are now commonly automated with banking scripts, algorithms, and applications.
In this way, you can be sure to streamline instead of segment processes through automation. There is a scarcity of digital, data, and cyber skills available in the market. Re-skilling employees instead of recruiting new ones can deliver immediate value. When you empower employees to take on additional high-skill roles instead of mundane tasks, employee satisfaction will increase, and their customer interactions will improve. Re-skilling your labour force is a sure-fire way to improve customer satisfaction with in-person interactions while creating a skilled, passionate workforce. Automation allows for a higher degree of personalization than could ever be provided by in-person models.
Invoice Approval Automation
By implementing smart banking process automation, your financial institution can provide customers the digital experiences they expect. At its core, banking process automation is about building workflows that are automated, paperless, and secure. Banking is a highly complex domain with hundreds and thousands of processes running simultaneously to service millions of institutional and retail customers.
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