Over the past couple decades, banks and other financial institutions have really had to step up their game. In order to remain competitive in an increasingly saturated market – especially with the more widespread adoption of virtual banking – these firms have had to find a way to deliver the best possible user experience to their customers. Internally, the challenge to maximize efficiency and keep costs as low as possible while also maintaining maximum security levels has also increased. To answer these demands, robotic process automation has become a powerful and effective tool.
Similar to many other industries, the financial field is heavily reliant upon documents and the many legacy systems that have been employed to help manage them most effectively. There is are a great deal of records involved in the life cycle of a banking customer, from the initial application to account management documents to deposits, withdrawals, loan documents and a whole myriad of other day to day transactions that inevitably generate documentation.
Until robotic process automation was introduced as a solution for the financial industry, banking professionals struggled to connect the many legacy systems being used in order to manage and retrieve the information needed to do their jobs most effectively. And given the massive number of mergers and acquisitions in the financial world, this problem wasn’t going away. One of the greatest benefits of RPA, however, has been the ability this technology provides to integrate with and bridge these legacy systems, creating a much more uniform approach to data management without having to start from scratch. It’s been nothing short of revolutionary.
Beyond this, robotic process automation has also dramatically streamlined a wide variety of back office processes that once bogged down bank workers. By shifting much of these tedious, manual tasks from human to machine, banks have been able to significantly reduce the need for human involvement, which has had a direct impact on everything from performance and efficiency levels to staffing issues and expenses.
The volume of documentation required for financial transactions can also lead to slower processing times. In many instances, a process could be stuck in limbo for days, weeks or even longer as it awaits approval. And with humans at the helm, errors are inevitable – some of which could prove incredibly costly to the institution, both financially as well as reputation-wise. By automating these back office functions, these delays and errors can be all but eliminated, creating a more productive, efficient and accurate process.
With robotic process automation, bank employees will know where information is at all times and be able to access it at the click of a button, all thanks to the robot software running behind the scenes. Additionally, employing RPA can create a much more transparent environment in which data for every single transaction is properly recorded, categorized and stored for quick and easy retrieval and review at any time on demand.
Another area where RPA is beneficial to the financial industry is in compliance. Like the insurance field, banks and other financial institutions are required to constantly maintain a high level of regulatory compliance. Employees must constantly check information against industry and government regulations and also stay up to speed on any changes, which can and do occur quite frequently. Because robotic process automation handles all of the documentation and eliminates errors, audits become much less cumbersome. Furthermore, this technology is capable of being altered rapidly, making it ideal for a field that evolves so often.
In conclusion, today’s banking firms are facing increasing demands to maintain as lean an operation as possible while also delivering exceptional client experience at the lowest costs. Robotic process automation is making it possible for financial institutions to achieve these goals and remain competitive in a sometimes-turbulent, ever-changing environment.