What is workflow Automation?
Automation of workflows is a technology used to reduce or eliminate human intervention in a variety of business processes. By automating workflow processes, legacy and manual processes are transformed into centralized, electronic systems such as authorizations, payments, requests, tasks, emails, etc.
How is workflow automation helpful?
Workflow automation in the banking process eliminates the drawbacks of manual processing and improves operational efficiency. Finance and banking have a lot of responsibilities, both behind the scenes and in the spotlight. Automation technology simplifies and enhances banking processes, which subsequently increases customer satisfaction.
Automating the banking process can improve its productivity and performance. Below are a few benefits of work automation in the banking sectors
- Boost the productivity and efficiency of task management and completion
- Save on labor costs
- Enhance the customer experience
- Improving workflow scalability
- Reducing processing errors
How to automate processes?
As a result, the process involved in starting something new would require significant time before it could be put into effect. Once the process is chosen it could take time and a lot longer than one might think. Several factors are causing significant turbulence in the banking industry including the global pandemic and economic uncertainty. As banks respond to the COVID-19 situation, they are exploring all possible methods to reduce costs, increase revenues, and improve customer service. Banks are increasingly turning to RPA to accelerate digital transformation.
Five Use case of RPA in Banking Industry
Adopting automation technology can help transform the tedious, time-consuming, and manual work processes into easy-to-use, automated workflows and improve your business’s efficiency like never before.
Banks have used RPA technology to automate many processes, allowing teams to focus on engaging with customers and growing their business. Among them are:
Loan Processing
Loan origination processes can be improved using RPA. In addition to addressing the clients' needs, RPA helps lenders develop a better loan origination process and provides them with new growth opportunities. An RPA software program automates business processes, such as documentation, route planning, notification over email, data synchronization, etc.
Automation allows streamlining of disparate systems, provides consistent and reliable data flow for any stage of the loan origination process, and accelerates the overall processes while delivering strong audit and control benefits. As loan processing involves input from several systems, RPA bots can facilitate the transfer of data between those systems.
Customer Service
The sheer volume of inquiries that banks handle, including fraud claims, loan inquires, credit card inquiries, payment delays, etc., makes it more difficult for customer service representatives to give a satisfactory response within a reasonable timeframe. With RPA systems, it is now possible to automate the low priority queries, freeing up the customer service department to focus their energies on high priority queries that require human intelligence.
Additionally, RPA assists in speeding up the process of verifying customer information across multiple systems and onboarding customers. Banks have been able to improve their relations with customers because of a reduced waiting period and an easy redressal process.
Know Your Customer (KYC)
The automated digital workflow makes it very simple to collect customer documents. Automating KYC can let human decision-makers handle some factors. An automated process can be used to screen and verify the identity of incoming applicants under regulatory standards.
The KYC compliance process can be made more efficient by using not just the dedicated solutions that are currently in development, but also by utilizing RPA bots to automate certain parts of the process. RPA bots can speed up the processing time of regular cases, improve compliance and security, and decrease the error rate among customer-facing processes.
Regulatory Monitoring
To detect changes ahead of time, or to get updated information as new information is released, RPAs can scan regulatory announcements for future changes. However, regulations can take time to evolve. Cross-comparison of notifications can be used to identify improvements. As a result, identifying regulations becomes more efficient, and noncompliance penalties can be avoided.
Account Closure Process
On a monthly basis, banks get a lot of requests for accounts to be closed. A bank closes an account at the customer's request, finalizing both information and account status. In some cases, accounts can be closed if clients don't provide the proofs they need to operate them. Through RPA, banks can remind their customers to provide proofs automatically. In addition, account closure requests can also be processed in a short period of time and with 100% accuracy under the established set of rules. Exceptional scenarios, such as the failure to comply with KYC, can also be covered by RPA.
Conclusion
Banking must utilize RPA in every function to enhance their customers' experience and differentiate themselves from their competitors. Despite its cost, it can produce a good ROI in a short period of time, considering the value it provides to the company.