Improving Operational Efficiency with RPA in BFSI Industry
Through its detection of the existence of robotic process automation (RPA), the pandemic has induced a fast acceleration of automation in a number of sectors. It has caused different firms’ visions to evolve significantly. According to recent data, 76 percent of firms have adopted automation as a result of COVID-19, and they will keep up the change to automation even beyond COVID. These figures show that automation methods have been actively adopted and scaled up.
The Banking, Financial Services, and Insurance (BFSI) industry involve a lot of manual efforts like checklist-driven tasks, house of old applications, auditing, etc. RPA is a fantastic way to do rid of this laborious and time-consuming process and help the BFSI sector operate more efficiently. Robotic process automation is precise and accurate, which significantly reduces the possibility of mistakes in the BFSI sector.
How is RPA Scaling Operations in the BFSI Sector?
By accelerating procedures and improving operational performance from extremely repetitive and labor-intensive jobs, RPA may have a substantial impact on the banking industry.
The RPA market within the BFSI sector is primed for rapid growth over the next ten years due to the surge in the use of financial automation on a global scale. The worldwide RPA market for financial services was estimated to be worth $340.95 million in 2020 and is projected to increase to $4,883.41 million by 2030, according to research by Allied Market Research.
Here are a few benefits of implementing robotic process automation in BFSI:
Saves Big Time
There are a large number of processes in the financial sector that involve dreary tasks that are performed manually, which might translate into mistakes that create delays. By automating these processes, we can increase productivity and better allocate our resources. According to an analysis by Accenture, RPA implementation may increase operational speed by 80%.
RPA is vastly scalable, as banks and FIs manage a high volume of work during peak hours, and by simply adding more bots they can scale up operations without manual labor. These bots are capable of performing their jobs accurately and continuously, without any hiccups or mistakes. When necessary, they can be rapidly reduced. Employing these bots allows banks and FIs to concentrate more on creative tactics while relieving staff members of tedious tasks.
Data Migration for Better Decision Making
Manual handling of processes means a lack of data, which could cause a loss in potential revenue for the banks and FIs simply due to insufficient information. With the implementation of RPA, it can be leveraged to collect real-time data from both legacy and new data, which ultimately helps in offering deeper insights into business growth and opportunities that can be seized. Therefore, it is essential for organizations that are willing to expand their operations.
Enhancing the Customer Experience
RPA aids in process simplification, enabling work to be accomplished with less effort and expense than manual handling. RPA offers clients a consistent, error-free experience because of its ability to accomplish tasks quickly and accurately. Finally, a good customer experience (CX) can boost client loyalty to the bank or financial institution and provide it an edge over market competitors.
Use Cases of RPA in BFSI
To stay ahead of the curve, the BFSI firms will need to invest in robotic process automation that will streamline their everyday operations and create a faultless customer experience. In banking operations, the correct use cases can bring tremendous value rapidly and at a cheap cost.
There are numerous use cases for RPA; let us discuss some of the most lucrative RPA use cases associated with the BFSI sector.
Detection of Fraud or Scams
Banks are getting increasingly concerned about the considerable growth in financial fraud. The usage of RPA aids in the detection of potential frauds and alerting the appropriate agency. RPA detects fraudulent behavior using a variety of algorithms and techniques. Using RPA to identify fraud reduces manual mistakes, allowing staff to focus more on labor-intensive tasks.
Granting loans is one of the salient functions of any bank or FI. Employees must manually analyze all papers submitted by consumers for loan approval. This procedure can be time-consuming and error-prone. RPA will allow for automatic document verification and inspection prior to loan approval, reducing loan processing time while boosting operational efficiency and accuracy.
Account Opening & KYC Process
Opening third-party accounts, which might involve opening hundreds of accounts by a single attorney. RPA assists in the authentication of clients, checking their credit scores and employment records to shorten the waiting period. So, to decrease manual tasks and streamline account opening processes, RPA will be an appropriate option to conduct account opening processes.
RPA is already in use in BFSI organizations due to its ability to automate manual, laborious, and time-consuming processes. More evidence of its effectiveness may be seen in the fact that, according to Gartner, more than 80% of finance leaders have adopted RPA or intend to do so. Additionally, this will help to get rid of any inefficiencies that lead to poor customer service.
Post the implementation of RPA, you will notice significant changes in your business operations, such as:
- Better customer experience
- Improved operational efficiency
- Reduction in fraudulent activities
If you are seeking a technology service provider to implement RPA in your financial processes, you can contact Apptread, which has expert automation developers who can install RPA in your workflow based on your service needs.