Streamlining Banking Processes with Robotic Process Automation (RPA): A Look at Use Cases in the Financial Industry
Automation technology is rapidly transforming the banking industry, providing numerous benefits to both financial institutions and customers alike. With the rise of Robotic Process Automation (RPA), banks can streamline their operations, reduce errors, and enhance security. RPA allows banks to automate repetitive tasks, such as customer onboarding, internet banking, UPI reconciliation, Fast Tag account activation, and auto-debit, freeing up valuable time for staff to focus on more high-value tasks.
In this article, we will explore the advantages of using RPA technology in banking and examine how it is being implemented in various banking operations.
Customer Id and Account Creation:
Before a customer can be onboarded, the information they provide on an account opening form is reviewed by various departments. Due to the length of time required by several departments to verify the information, a delay is almost certain. This can result in a negative experience for the customer, as there is a significant time gap between filling out the form and being onboarded.
RPA (Robotic Process Automation) uses previously stored data to automatically populate all customer-related fields. It verifies the customer's identity by comparing the new data with the old data, and if successful, begins the onboarding phase. The entire operation is done more quickly and accurately, enabling financial institutions to onboard the customer instantly by creating customer IDs.
This way, the bank can verify the customer's information before opening a new account, and validating and opening a new account can be done more efficiently. RPA assists the team in authenticating the customer's identification, historical credit score, employee records, and address facts to shorten the waiting duration. Additionally, it validates whether the customer complies with all the compliance standards and notifies the validation team if there are any discrepancies. Once the validation process is complete, the software creates a new account and sends the details to the customer
Internet Banking:
The method of conducting financial transactions over the internet is known as internet banking. Examples of such activities include checking account balances, transferring money between accounts, and paying bills.
One advantage of adopting RPA technology for internet banking is that it can help reduce the amount of time spent on these tasks. Many tasks that are traditionally performed by humans, such as checking account balances and transferring money between accounts, can be automated using this technology. This can save time and increase efficiency.
Customers no longer must wait to activate their internet banking services, as the RPA procedure can begin right away. It does not require any information from the customer other than what was provided during onboarding. Only those particulars will be retrieved and utilized in order to activate the account.
Finally, the use of RPA technology for online banking can also help increase security. Password entry and other sensitive data entry can be automated with the help of this technology, reducing the possibility of someone accessing your account and compromising your personal data.
Overall, RPA technology has several advantages when it comes to internet banking. This technology has the potential to save time, increase accuracy, and enhance security.
Payment Reconciliation:
Payment reconciliation ensures proper accounting by comparing financial records to bank statements and verifying account balances. Automation potential in bank reconciliation includes:
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Reducing the possibility of human error.
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Increasing operational effectiveness.
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Reducing the time and effort required for reconciliation.
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Assisting in the preparation of management reports.
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Reducing stress in finance departments and allowing more time for high-value pursuits.
To automate bank account reconciliation using RPA:
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Use an RPA tool to log into accounts, collect and process bank transactions, retrieve information from shared folders, and reconcile accounts.
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Follow these five steps: enter transactions from bank statements into general ledger accounts by hand, examine bank statements in relation to ledger accounts, recognize discrepancies between statements and ledger balances, work out differences, and reconcile statements.
In the banking industry, RPA solutions are gaining popularity for automating various activities, such as loan approval, investment banking, Reg NMS, AML, and reconciliation. RPA programs are also capable of handling currency translation, credit transfer, and payment processing, enabling banks to automate their entire workflow and increase productivity while reducing manual errors.
Fast Tag:
Fast Tag is a reloadable tag that can be used at toll plazas to allow for the automatic deduction of toll money and facilitate passage without waiting for any financial transaction. When active, the tag is affixed to the windscreen and uses Radio Frequency Identification Technology.
RPA technology can automate the process of activating Fast Tag accounts, which would otherwise require the assistance of a bank personnel. The account holder's bank provides all necessary information to the RPA process, which then takes care of processing the documents. This frees up the employee's time to focus on more important tasks.
Fast Tag's RPA technology automatically tags products with the appropriate information. This eliminates the need for companies to manually tag their products, a laborious and error-prone process. Fast Tag also ensures the accuracy of product information.
Auto Debit:
An automatic withdrawal of funds from a bank account to cover bills or other expenses is known as auto debit. Different methods, like using a debit card or sending money electronically from the bank account to the vendor, can be used to accomplish this. RPA technology is an artificial intelligence technique that enables computers to carry out operations that would often require human input automatically. The advantages of adopting RPA technology to carry out auto debit transactions are:
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The ability to spend less time on these tasks, as many tasks that have historically been handled by humans, like checking account balances and moving money between accounts, can now be automated thanks to technology. This can speed up processes and increase effectiveness.
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Increased accuracy, as the act of transferring money between accounts and checking account balances can both be automated thanks to this technology. This might lessen the possibility of making errors when paying bills or other expenses.
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Enhanced security, as password entry and other sensitive information entry can be automated with the aid of this technology. This can lessen the likelihood that someone will obtain access to your account and compromise your personal information.
Conclusion
In conclusion, RPA technology is transforming the banking industry by streamlining processes and improving efficiency. It has become an indispensable tool in customer onboarding, internet banking, UPI reconciliation, fast tag, and auto-debit. By automating repetitive tasks, RPA technology helps reduce human error, increase operational effectiveness, and improve the overall accuracy of financial transactions. In addition, RPA technology can also help enhance the security of financial information by automating password entry and other sensitive data entry tasks. As banks look to improve their processes and stay competitive, they will increasingly rely on RPA technology to drive their digital transformation journey.