Benefits of RPA in Banking and Finance Industry

1. Significance of Robotic Process Automation in Banking Industry “RPA is growing exponentially. Recent RPA trends and forecasts report shows that by 2021, RPA will be $2.9 billion industry. That’s a huge increase from $250 million in 2016”. To remain competitive in an increasingly saturated market, especially with the more extensive adoption of virtual banking, it is must for banking firms to find a better way to deliver a satisfactory user experience to their customers. Apart from this, the most common challenge that banking industry face is to maximize efficiency and that too by keeping costs as low as possible while also maintaining security levels. The one-stop solution for all these requirements is Robotic Process Automation (RPA). How RPA has transformed Banking Functionalities? RPA has dramatically streamlined a wide variety of back office operations that once bogged down bank workers. By shifting tedious and manual tasks from human to machine, banks have been able to reduce the need for human involvement and that has had the direct and adverse impact on everything from efficiency and performance levels to staffing expenses and issues. Many big as well as small banks are actively adopting this technology to save labor costs and gain operational efficiency. Along with these benefits, implementation of RPA minimizes the manual processing of huge volumes of data to avoid errors, reduce processing cost by 30 percent to 70 percent, and free up manpower to focus on more cognitive tasks.

2. Some of the bank’s operations can be automated are as follows:          Customer Service Compliance Accounts Payable Credit Card Processing Mortgage Processing Fraud Detection KYC Account Closure Process Deposits and many more Let’s looks at some of the many benefits of RPA in banking 1.Cost Savings According to various business experts, RPA is helpful in providing value to the overall organizational benefits and efficiency. But, the actual state is a bit different from what the experts say. RPA is also helpful in reducing costs. Banks are always looking to cut costs to stay competitive and up to the expectations of consumers. Thanks to the Robotic Process Automation. Research shows that RPA not only drives 25% to 50% cost savings, but also improves the output of applied functions.

3. 2.Advances the Operational Efficiency Banks are a crucial part of the economy and they also play an imperative role in influencing the economy, therefore, it is necessary for all the banks to become more efficient with each passing day. RPA is an extensive solution and requires training, governance, and comprehensive setup. But, once it is done, research shows that banks can save 40-60% in the first year of its implementation along with making the processes faster and much more efficient. 3.Agile Businesses With the rapid technological development and globalization, banks are required to be more flexible as well as agile than ever. The things are happening so fast that the world can see its effect within hours instead of days and there banks have the opportunity to use RPA to stay active and responsive for such situations. Also, by freeing up the human resources from paper-intensive jobs, more focus can be given to more cognitive tasks to grow the business. 4.Reduced Business Response Time For process execution and operational efficiency, banks are actively incorporating RPA and according to a research, banks will be able to save 75% of the cost while retaining the quality output. With the help of RPA, banks can bring down process execution time by around 60% and is disrupting the way banks are operating along with an increasing CAGR of 65%. With so many advantages, banks must consider RPA as the crucial way to change. RPA can help banks to stay competitive as well as gain competitive edge over others with reduced costs and improved efficiency. This ultimately results in overall development and sustainable growth in the businesses. Source URL: - https://blog.vertexplus.com/significance-of-robotic-process-automation-in-banking- industry/

4. How RPA is Helpful in Finance Industry In the last few years, RPA has gained much popularity in midmarket enterprises and today, we will explore other industries that have become leaders by using digital labour technology. One such industry is finance, where RPA has helped streamlining multiple processes, resulting in high productivity. Here is the breakdown of how Robotic Process Automation is helping companies of all sizes in the finance industry. Who’s using RPA? According to a 2016 PwC Survey, two-third companies in the finance industry are using RPA in their internal processes, while many amongst the rest have approached vendors to provide them the RPA benefits. Although automation is not new to the finance sector, RPA is automating financial services for more than a decade. While the big scale companies in this industry are gaining the benefits of RPA, midmarket enterprises are also investing in it for their overall development. The RPA has helped mid- scale enterprises to boost their efficiency, gain competitive edge, and stand aside the behemoth players of the industry.

5. Benefits of RPA 1.Automation of manual tasks In financial sector, there are many paper-intensive jobs like reviewing, editing, comparing and matching customer’s data from one document to another and all these processes require huge amount of time and manual efforts. Moreover, this disguises the talent of employees, as they continuously invest their whole time in doing tedious tasks – filling application forms, deeds, declarations, and endorsements. Manual processing of these tasks does not assure error-free outcomes, which ultimately become potentially dangerous for the growth of an organization. RPA is the most suitable technology for rule-based tasks and thus, it makes the appropriate option for the finance industry, as there are a lot of paper-intensive and time-consuming jobs. RPA has streamlined the processes of finance industry that has ultimately made data retrieval easy. It also reduces mistakes, time consumption, and cost and improves overall efficiency. 2.RPA is faster and cheaper RPA reduces operational costs by replacing human efforts, repeatable tasks, while reducing the processing time. RPA is useful for doing many things better, faster and cheaper in comparison to human workforce. Regardless of the company size, RPA reduces approximately 50-70% cost and also releases employees from the burden of doing repetitive tasks and let them focus on more cognitive organizational processes.

6. Accuracy is a crucial aspect for finance industry and expecting 100% accuracy from human efforts is not realistic because extracting, filling and comparing a huge amount of data without any error is not possible for humans. There you require a bot who could perform all these tasks without consuming much time and generating 100% genuine results. 3.Manage risk and improve compliance RPA is very helpful in managing risks and meeting compliance requirements, which is very necessary for the finance industry. RPA’s efficiencies and cost savings over outsourcing may also enable companies to keep their data in house and under their direct control. The consistent RPA operations help in reducing risk and error that ultimately increase company’s credibility and authenticity in the market. 4.Embrace change and complexity Robotic Process Automation enables midsize financial enterprises embrace change and deal with complex situations easily. Due to the highly competitive scenarios in the financial industry, every enterprise needs to evolve as per the market conditions and bring something new regularly to gain a competitive edge over others. RPA is that new technology that can consistently bring new to the organization and help acquire desired outcomes. If you’re looking forward to set up RPA in your organization, allows us to serve you. Contact us now Source URL: - https://blog.vertexplus.com/what-are-the-benefits-of-implementing-rpa-in-finance/