With the increased number of clients, modern financial institutions are facing the urgent necessity to improve the quality of their services in order to deal with the enormous workload. Some organizations decide to constantly expand their staff in order to break the vicious cycle of unfinished tasks that have a very stable tendency of growth. However, this way is no longer considered an effective decision with the recent innovation called Robotic Process Automation or simply RPA that is believed to give a major boost to the performance of companies involved in the financial industry. Let’s find out the points that can be improved in the financial organizations by introducing RPA into their daily routine.
What Is RPA?
First of all, it can be useful to briefly explain the main idea of RPA and assess its ability to refine a number of processes in which relying on human labor is no longer effective. RPA is a recently developed technology that uses software robots or bots to analyze and process large blocks of data and automate time-consuming and repetitive business processes. Basically, RPA technology in its current form can be described as certain software or an independent application that is capable of connecting across enterprise systems to introduce the automation processes in those areas that were previously marked by repetitive manual actions.
Looking for cost-effective ways to improve your financial business performance?Contact us →
How RPA works?
While it is quite obvious now that RPA software can be very helpful to businesses, it is still necessary to explain the main principles of its work. In fact, this technology uses specially programmed software robots or similar virtual assistants that are aimed at completing repetitive tasks. RPA developers are those persons who program these robots and literally teach them to repeat the same actions in a strictly defined order. In contrast to widely used AI tools, these robots cannot learn independently as all their actions are dictated by a program.
Typical RPA use cases
When speaking about the application of robotics in finance, there can be different scenarios pushing the organizations to seek the automation of their processes. While every financial institution is focused on expanding the client base and increasing its revenue, the use of RPA can enhance the achievement of these goals significantly.
So what are the main reasons for a financial institution to opt for robotics? The first case can be associated with the necessity to reduce time spent on customer verification. With the introduction of RPA, modern financial organizations can quickly validate customer data on different government websites and decide whether their potential client deserves trust. Using robots to perform customer verification can help employees get focused on more important tasks, such as face-to-face communication with the clients.
The second use case for RPA finance tools results from their ability to quickly analyze and evaluate all of the financial sub-processes and create effective prioritization mechanism for targeting those customers or businesses that can provide the largest profits. This predictive nature of robotics has already benefited numerous banks and other financial institutions.
The third use case may follow the need for simplifying the process of checking newly registered accounts. The use of robots for this purpose can significantly reduce downstream errors as well as refine system data quality. Surely, there are lots of other cases for introducing RPA into the financial industry with many more ones expected to appear in the near future.
How RPA benefits pressured teams?
1. Higher scalability. One of the primary purposes of RPA is to reduce the number of repetitive and high-frequency tasks that an average employee in banking or finance is in charge of. Compared to humans, RPA is way more cost-effective in processing huge amounts of data and updating customer profiles. The use of RPA tools allows a company to cut staffing costs by 20 to 50 percent without sacrificing productivity. Moreover, the implementation of RPA does not entail massive layoffs. By contrast, it gives workers a chance to put their efforts into improving their thinking skills and finding innovative solutions for their company.
2. Reduced risks. Humans tend to mistake irrespective of how many years of experience each one has under their belt. RPA, in turn, is programmed to deliver accurate and error-free performance. This singularity helps businesses empowered with robots avoid mistakes in business processes as well as enhance the degree of compliance. Financial risk management is normally a big challenge for many companies. With the help of RPA technology, banking and financial institutions become more resistant to errors and develop a competitive advantage over their competitors.
3. Round-the-clock availability. Robots have a greater potential in terms of durability. They need no perks or special working climate to perform their functions on a high level. This feature pushes more and more businesses to adapt RPA technology and employ robots round the clock. RPA can support any banking system without interruption even when no human is in the office. Some robots can deal with simple requests. This RPA capability allows for customer self-service and thereby improved customer satisfaction. It also leads to a more flexible schedule for personnel working in finance and gives them more opportunities to develop.
4. More insights into analytics. Manual handling of tasks impedes monitoring that typically allows for detecting strengths and weaknesses in the company’s business processes. RPA-based performance helps to keep track of progress and supplies data on customer service, sales growth, as well as general efficiency. This set of metrics can be a good basis to build a good strategy that promotes the company’s development best. Similarly, the CIO can use this information to eliminate the flaws in service operations and speed up the business process.
5. Expanded front-end automation. Here, RPA again replaces the manpower by dealing with customers faced with financial challenges. Though robots are useless in addressing serious issues, they excel at sending notifications or assisting clients in submitting their complaints. This automation of simple customer requests contributes to customer satisfaction and reduces the average time a customer has to wait.
Is RPA necessary for every financial organization?
The use of robotics in finance and accounting is a growing trend in the IT industry. Though the majority of businesses are only going to integrate this technology, robotics will soon become a necessity for every financial organization that strives to retain its influence. Automation in finance brings about plenty of positive changes in customer service operations and allows for the digital transformation of the company’s infrastructure and business processes. Unless a financial company relies on another technology, it should implement RPA to remain competitive and evolve.