Robotic Process Automation in Banking: Benefits for Financial Institutions
According to PwS, 81% of banking CEOs have concerns about the speed of tech changes. At the same time, workflow optimization, pandemic trends, and high security demands are still the biggest challenges for market participants.
Robotic Process Automation (RPA) in banking can be a powerful tool to cover numerous industry needs and keep enterprises “up to date”. So why don’t we raise this issue right now?
We’ll guide you from a basic definition to particular use cases of RPA tools in banking and their implementation into your business processes.
What Is Robotic Process Automation in Banking?
RPA in banking and finance is a set of robotic activities that replace or augment routine human tasks in the financial domain. Technologies allow companies to refocus their priorities. With them, managers can channel most of their attention to the critical organizational tasks that require creative brainwork.
Internal and external business issues make the global RPA market flourish. By the end of 2021, it is expected to reach 1.89 billion USD — it is a 19.5% growth compared to 2020 (Gartner).
Even the harsh pandemic reality did not stop the niche’s growth. In fact, new challenges aroused even more interest in the RPA software. Gartner predicts that 90% of large businesses will adopt RPA for certain activities by 2022.
What’s more, a lot of large businesses will increase their RPA capacity through 2024. That said, the highest spending will come from companies that buy add-ons for their existing RPA infrastructure.
Benefits of Robotic Process Automation for the Banking Industry
Why would so many managers and business owners rely on innovative robotic technologies? The thing is, they clearly realize what they get in exchange for RPA implementation.
1. Cut in spending
It concerns both time and money. In the long run, robotics is more cost-effective than human work. The money you pay to an employee for performing routine tasks will soon outweigh the cost to develop a robotics solution for the same work.
What’s more, robots don’t need breaks — they can continue working at night and never get tired. Your company reduces spending and gets optimized workflow at the same time.
2. Improved security
RPA tools in banking allow you to manage client data more effectively, following the KYC process. Usually, it takes a lot to collect all the details about a particular person — managers spend hours checking numerous databases. For technologies, it’s only seconds. Faster and more thorough check-ups benefit both banks (which get a more secure infrastructure) and their clients (who get prompt feedback from a bank).
3. High scalability
Robots add scalability to internal business processes. For example, they can easily cope with high volumes of data with no stress, especially at busy hours. While they are at work, you can use the power of the human brain for the bigger goal — strategic business growth that requires focus and creativity.
4. Minimum infrastructure
When implementing an IT project, you have to create a new infrastructure for it by default. But this rule doesn’t apply to RPA innovations — this time, you’ll need minimum preparations. All you have to do is to use the existing infrastructure and build robotics upon it.
5. Enhanced engagement and customer satisfaction
RPA is beneficial for your customers as well, and trust us, they will notice the difference. Starting from customer assistance (chatbots) up to optimized data processing time — robotics is an essential part of it.
Before now, lots of operations used to require a client to come to a bank branch and communicate with managers. Chatbots can take over a part of this communication with no need to leave home.
6. 24/7 availability
No matter what your goals are, technologies will be by your side any time of the day ready to accomplish your tasks. And what’s more important — they are equally productive at night and in the morning.
How exactly can your business employ these opportunities? We’re reviewing use cases of RPA in banking and finance with real-life industry examples. Follow the link for detailed insights and figures.