Robotic process automation (RPA) is transforming businesses across industries with the power of automation. Research predicts that in the future most business processes, from 50 to 90%, will be automated with RPA solutions.
RPA will especially be impactful in finance where complex processes are well suited for automation.
What is RPA?
RPA is a “digital workforce” which automates redundant and mundane tasks in the workflow. Some common tasks used for RPA include:
– Copy and paste
– Data gathering
– Data entry
– Records management
How Is RPA Improving The Finance Industry?
In 2022, it is projected that RPA technologies will be valued at $2.9 billion in the financial sector. In the last decade, banks and financial services have spent $321 billion on compliance operations and fines. As much as 10% of the bank’s operating cost is due to compliance costs.
In a highly competitive marketplace, financial institutions such as banks have leveraged technological advances to improve customer service, operations, and cut costs.
6 RPA In Finance Examples
For financial institutions to be successful in implementing RPA, there needs to be a strategy in place. Having an RPA use case in finance helps businesses align the right tools and practices with automation.
1. Ensure Data Consistency
Financial services work well with automation because of the large number of customer data. Customer data such as:
– phone number
– credit scores
These details are constantly changing, an opportunity for RPA bots to use bank statements to maintain and update records.
RPA can be leveraged for accounting purposes. From invoicing to accounts payable and accounts receivable, RPA enables error-free accounting. This significantly speeds up the process and increases customer satisfaction.
3. Account Management
Banks are responsible for account management for their clients. A large percentage of bank business is opening new accounts. This requires banks to verify customer details such as identity, credit scores, and compliance rules. RPA can take over the process of opening new accounts and check for any divergent details, so customers are satisfied, and new accounts are opened quickly.
4. Automate Card Activation
Card activation can be a time-consuming process under customer demands that is prone to error. By using RPA, banks automate data entry, compliance rules, and communication between departments. The result? A better customer and employee experience.
5. Improve Investment options
RPA bots can serve as virtual financial advisors without the high cost of human counterparts. Bots can instantly assess an investor’s portfolio and minimize the risk of investing. For example, a certain bank launched an investment bot program that offered real-time investment and stock market Information. This initiative worked well in educating customers about investing and the stock market.
6. Prevent Money Laundering
RPA bots protect the reputation of a financial department by validating and checking customer information for any discrepancies. Customers can feel protected knowing their information is safe and banks have an extra layer of security to avert money laundering.
The Future of RPA In Finance
RPA is gaining significant momentum in businesses across all industries as a technological advancement that will shape the future of work. By automating repetitive and mundane tasks, financial services businesses can ensure compliance and customer satisfaction. Satisfied customers will equate to increased revenues and growth in the future.