Banking Automation: The Complete Guide

The banking and financial services industry provides multidimensional services, with several processes running at the front and back end. Several banking functions like account opening, accounts payable, closure process, credit card processing, and loan processing, can be effectively automated for a seamless customer experience. Banking process automation enables improved productivity, superior customer engagement, and cost savings.

Such outdated tech stack is obviously not compatible with digital age technologies. Legacy system replacement projects are massive and expensive, and, on top of that, they pose risks that banks are not ready to mitigate. Automating the banking process eliminates the drawbacks of manual processing and also improves operational efficiency.

Productivity Improvements

Automation is the advent and alertness of technology to provide and supply items and offerings with minimum human intervention. The implementation of automation technology, techniques, and procedures improves the efficiency, reliability, and/or pace of many duties that have been formerly completed with the aid of using humans. Robotic process automation transforms business processes across multiple industries and business functions. From reduced costs to greater productivity to agility and flexibility in operations, automation is a powerful tool for modern organizations.

Usually, it takes somewhere around two or three weeks to compile documents and spreadsheets. The financial close cycle takes more time without automation if we count reviews and approvals. But when employees can free themselves from manually matching and balancing transactions, the workload gets more manageable. Despite the obvious and tangible benefits of robotic process automation, banking industry leaders are slowly approaching the RPA technology adoption.

Productivity Uplift

After all, since banks store sensitive information, they are top in the hit list of hackers and attackers. Let’s find out to what challenges CEOs have to rise to start the successful digital transformation with simple yet efficient robotic process automation (RPA). Automation can gather, aggregate, and analyze data from multiple sources to identify trends enabling employees throughout the business to make more informed business decisions with deeper business intelligence insights. This may include developing personalized targeting of products or services to individual customers who would benefit most in building better relationships while driving revenue and increasing market share. IA ensures transactions are completed securely using fraud detection algorithms to flag unauthorized activities immediately to freeze compromised accounts automatically. For business or retail accounts, banks offer business loan services, checking/savings accounts, debit and credit card processing, merchant services, and treasury services.

This means that activities that require visiting the bank or awaiting ‘working hours’ or business days can be performed almost anytime. Maintaining high quality customer service is one of the biggest contributors to a bank’s reputation. Therefore, it is hugely beneficial for banks to integrate RPA into their service channels to better meet customers’ needs and drive satisfaction.

Use Cases of Business Process Automation in the Financial Services Sector

Creating an excellent digital customer experience can set your bank apart from the competition. The more focus you put on developing digital channels, the more likely you are to retain current customers and attract new ones. Help your organization continue to grow and innovate by digitizing your banking workflows today. Use Conditional Logic to only ask necessary questions, which improves the customer experience and creates a shorter form. Use Smart Lists to quickly manage long, evolving lists of field options across all your forms. This is great for listing branch locations, loan officers, loan offerings, and more.

In the financial industry, robotic process automation (RPA) refers to the application of   robot software to supplement or even replace human labor. As a result of RPA, financial institutions and accounting departments can automate formerly manual operations, freeing workers’ time to concentrate on higher-value work and giving their companies a competitive edge. Manual processes and systems have no place in the digital era because they increase costs, require more time, and are prone to errors. To address banking industry difficulties, banks and credit unions must consider technology-based solutions.

With endless transactions coming in and out of the bank each day, manual processes—such as spreadsheets—only lengthen the turnaround for reconciliations and extend the time that imbalances and investigations are corrected. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month. Throughout his career, Cem served as a tech and tech entrepreneur. He advised enterprises on their technology decisions at McKinsey & Company and Altman Solon for more than a decade.

The report highlights how RPA can lower your costs considerably in various ways. For example, RPA costs roughly a third of an offshore employee and a fifth of an onshore employee. According to a Gartner report, 80% of finance leaders have implemented or plan to implement RPA initiatives.

Intelligent Automation Use Cases

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