Digital Transformation in Banking Industry: Benefits and Examples

After purchasing several branches, the community bank had amassed an additional 20,000 customer accounts and 2,500 loans—all of which needed to be moved into the core banking system. Established banking institutions have historically relied on multiple legacy core systems. But the operational benefits of these systems were typically oversold at the time of acquisition; more often than not, the implementation under-delivered and fell short of automation promises.

An exceptionally time-intensive assignment, bank reconciliation requires the efforts of knowledge workers to collect a pile of transactional data that encompasses multiple banks and balance the figures. Instead, adequately programmed robots can effectively substitute human effort. Rule-based automation will allow for quick verification of each payment against other records and reconcile the records if a match is attained. In case of discrepancies, robots will transfer the respective records for additional verification.

Front Office

Customers today have more options than ever for financial services, and they have high expectations for individualized attention, quick turnaround times, and responsive support. From initial onboarding to account updates, RPA tools can enhance every facet of the customer experience. With automated Know Your Customer (KYC) validation, new customers can quickly open new accounts and apply for more products. RPA in financial services can be used to enhance the governance of financial processes, reducing the risk of regulatory fines and reputational harm. To decrease the manual business processes needed for compliance reporting, RPA assists in combining data from systems or documents. To help auditors make decisions more quickly, ML goes a step further by determining the data they might need to review and then locating, collecting, and storing it in a handy location.

• Build a branded online account opening form that embeds on your website and is fully mobile-optimized.
• As technology continues to advance, more breakthrough features are going to shift the ways of doing business.
• For those accepted, create personalized terms documentation featuring their credit limit, card choice, and APR.
• In many cases, assembling a team of existing IT employees that will be dedicated solely to the RPA implementation is crucial.
• This is how organizations provide the best products and services in areas ranging from wealth management to investment advisory.
• When people talk about IA, they really mean orchestrating a collection of automation tools to solve more sophisticated problems.

Whether you are a LoB manager or IT expert, streamline time consuming manual tasks in no time. When you hear the word “bots,” your mind goes to physical robots; the kind of factory floor automation you see in a car plant. But it means something very different for financial services companies, and it can be the thing that helps you get the edge over your competitors. Rules-based bots excel at tasks such as risk assessment and credit worthiness checks.

Banking roles that benefit from automation

For a number of years now, artificial intelligence has been very successful in battling financial fraud – and the future is looking brighter every year, as machine learning is catching up with the criminals. Less than 70 years from the day when the very term Artificial Intelligence came into existence, it’s become an integral part of the most demanding and fast-paced industries. Forward-thinking executive managers and business owners actively explore new AI use in finance and other areas to get a competitive edge on the market. Connect together all your systems, such as CRMs, databases, or helpdesk suites to create one, automated productivity machine.

• Selecting use cases comes down to a company-wide assessment of all the processes based on a clearly defined set of criteria.
• Similar to any other industry, cost-saving is critical to the banking industry, as well.
• The RPA use cases in banking mentioned in this article with help understand its potential.
• Banking process workflow automation is a thing of serious interest to the banking and financial sector.
• For example, our customer POP Bank has been using robotics since 2017 to streamline their operations, develop their customer service and improve the quality of processes.
• This said, as of late 2018, only a third of companies have taken steps to implement artificial intelligence into their company processes.

Johnston touched on two important issues here—the customer experience (CX) and employee experience (EX)—both of which are major priorities for most companies. With the opportunity to process invoices quicker, your organization can also take advantage of early payment discounts. Making purchase orders is a mundane yet indispensable activity that takes a large amount of staff’s time.

Embark On Your Automation Journey

Thus in an industry rife with large-scale white-collar work processing, the result tends to snowball, as banks and their IT departments struggle to merge different legacy systems into a coherent workflow. Organizations are investing in automation solutions that improve all the business processes involved in risk and compliance. Robotic process automation helps banks carry out fraud checks or quality checks and help out in risk reporting.

Plus the whole process is self-service and you do not need to move an inch. With document data routing, you can automatically combine files into one document or create several types of documents from a single data source. Use Formstack Sign to gather secure electronic signatures from employees and customers via email, text, or in-office signing. Receive a signature audit trail for each document so you can see who signed a document and exactly when they signed it.

benefits of RPA in banking

Search trends on Google show just how much the demand for robotics in banking has grown since 2016. Automation tools closely monitor all the transactions and flag any that seem suspicious. Moreover, when human agents review their decisions as right or wrong, they learn from these outcomes and become even more accurate in how they operate and flag transactions.

BNY Mellon is among the more outspoken proponents of robotic process automation in the banking industry. The bank began adopting RPA in 2016; as of 2017, it reportedly had 250 bots in production. Robotics enables the banking industry to integrate “the last mile” across business units like never before. RPA in banking use cases apply to a wide range of processes, including retail branch processes, commercial lending, consumer lending, loan processing, underwriting, and anti-money-laundering, just to name a few. Facing competition from both traditional banks and fintech startups, these organizations are constantly striving to improve customer experience and often use automation to help with that. We, at Maruti Techlabs, have worked on use cases ranging from service desk automation, customer service, new business, report automation, customer service, employee on-boarding, service desk automation, and more.

Account Closure Process

As such, there is currently a massive global skills shortage in data science, automation, and artificial intelligence—making it hard to implement automation at scale. Analyze your company operations and functions and determine which of them would benefit most from RPA implementation. Discover the issues that your organization faces and which of them could be solved with the help of automation. Prioritize the issues according to the degree of their impact on the business processes and the potential effect of the RPA implementation. Banking and financial sector players usually deal with large volumes of common client queries. Addressing these requests quickly can become a challenge for support teams.

Bank process workflow management is a methodology followed for increased coordination between various banking tasks. Through banking process workflow software, a banking organization examines the existing processes and designs new optimized and streamlined workflows for increasing productivity. Nailing both is how young, digital-native banks like Monzo have disrupted the sector.Their advantage is their youth – Monzo launched in 2015 as a digital-first bank so their oldest tech is just 6 years old. Apart from high-maintenance costs, the biggest challenge of legacy IT in banking is that they’re inflexible. Thankfully, AI-enabled chatbots can provide customers with 24/7, customized banking services in real time.

Where does private banking fit in an increasingly automated world?

In this digital era, personalization doesn’t merely refer to fundamental data such as a customer’s name. Instead, it includes knowing your customers’ likes and dislikes and developing unique packages of banking products and services for each customer as per their requirements and desires. Did you know that more than half of adult Americans access their financial services via laptops and PCs? And why wouldn’t they choose digital mobility, control, and convenience over the time spent driving to a bank and waiting in line? That and the development of more secure technologies are good enough reasons to digitize banks — banks need automation, and digitally active customers need online services and mobile banking.

• Intelligent robotic automation allowed Radius to thrive even in the COVID era.
• IoT allows to complete tasks such as tracking and monitoring of assets, and for providing location-based services to customers.
• Lending is one of the critical service areas for any financial institution.
• And if anomalities occur, they can be detected faster as robots can check large amounts of data daily, which would not be possible done manually.
• The primary aim of RPA in the banking industry is to assist in processing the repetitive banking work.
• Whether it’s far automating the guide procedures or catching suspicious banking transactions, RPA implementation proved instrumental in phrases of saving each time and fees compared to standard banking solutions.

This can include implementing digital tools for team collaboration and communication, such as instant messaging and video conferencing. Banks to quickly develop and launch new products and services, allowing them to stay competitive in the market. Increased automation will be crucial to ensuring the industry can reach and retain its next generation of wealth and asset management clients. While some of us are actively changing how we work and despite the clear strategic benefits of pursuing deeper integrated automation, private banks are often seen lagging behind their commercial peers. And, for those navigating the complex and varying regulatory compliance requirements imposed by different jurisdictions, markets and geographies, automation is once again a game changer. Book a discovery call with us to see first-hand how automation can transform your bank’s core operations.

Robotics in Banking with 4 RPA Use Case Examples + 3 Bank Bot Use Case Videos

This helps to improve the customer experience and the efficiency of call center operations. O’Reilly has found that many banking institutions struggle with where they can initiate their intelligent automation metadialog.com strategy even when they understand the benefits. In this case, it is critical to start small and focus on the value that can be delivered before deploying intelligent automation across the board.