Robotic Process Automation in Banking Industry
Significantly increases efficiency of business processes without any change to existing IT infrastructure
Robotic Process Automation in the banking industry is aimed to streamline a wide range of repetitive, time-consuming tasks from data reconciliation and data extraction to managing scanned documents (OCR).
Today, RPA is changing the way banks conduct business by implementing useful but still easy-to-use technology: instead of being obliged to rely on complicated codes and drag the IT department every time something is unclear, front-line banking employees can automate their tasks, once expertly trained.
Automation solutions for:
Features of RPA in the Banking industry
Customer onboarding and monitoring
Account opening and maintenance
To open a bank account, a potential client has to provide personal data, as well as identification numbers and a valid government ID (such as a driver’s license or passport).
The banker has to make photocopies of all the documents and extract all the needed information. All the updates in the account have to be made manually too.
Increased speed of account opening by 65%.
According to the anti-money laundering regulatory frameworks, banks have to keep thorough records of clients’ accounts and activities. Periodically they file reports regarding their clients and completed transactions, which leads to manual time-consuming data extraction.
Reduced time spent on reporting by 80%.
KYC can be thought of as the umbrella term for identifying your customers and verifying that identity. These parts of onboarding processes include gathering necessary customer information (name, address, date of birth for an individual, and an ID number) that can be automated. RPA simplifies this process by capturing the data from the KYC documents with optical character recognition technology (OCR).
Saved on KYC 90 hours/month.
Customer document processing/Electronic banking
Bankers check all uploaded documents on completeness of all the forms, compliance with the rules, and provide data authentication if the query comes online. These processes are crucial for banking institutions because they help identify the person and his/her/their credit limits, etc.
Saved on document processing 70 hours/month.
Credit Card Issuance and Processing
Manual operations with credit card issuance have to take place in different disconnected systems (for instance, checking financial history includes data about student loans, personal loans, total household income, etc.). RPA bots can work in various systems simultaneously to validate all the required data and decide based on rules to approve or disapprove the application.
Saved on operations with credit cards 120 hours/month.
Loan origination and processing
Auto loan origination
The potential borrower has to provide personal data to the rental bank, fill in the application form, and choose the term in order to obtain an auto loan. Once this information is submitted to the lender, it is typically manually processed by a loan officer. The process finishes by signing a credit contract.
Increased speed of loan origination by 50%.
Consumer loan origination
The variety of reasons to get a loan leads to a slightly different set of documents that have to be correctly filled and signed by a lender. This creates a problem for loan originators who manually sort and process information provided by people and can make mistakes because of overworking and tiredness of the number of applications that have to be dealt with.
Reduced the need for 18 loan officers involved in consumer loan origination.
Mortgage loan origination deals with all the paperwork involved with starting and expediting the loan approval process. It is known for its time-consuming steps, including loan file preparation. Loan officers run all documents through an automated underwriting program for approval. Still, the program does not approve every file, and some go to an underwriter for manual underwriting, which prolongs the loan origination process.
160 hours/month are saved on document processing for mortgage origination.
Along with other duties, compliance officers provide regular reports on the effectiveness of a business’s compliance measures. This leads to the precise procedures of report creation processes that include completion of the various forms manually, information extraction from databases and legacy systems.
Reduced compliance department headcount by 24%
ACH transfer review
An Automated Clearing House (ACH) transfer is one of the most common methods of moving money to and from bank accounts. The ACH network is involved in practically every type of electronic transaction, which means that finance departments have to manually add all incoming information about each client from disconnected systems (online shops, transfers to another bank, etc.) into one file.
100 hours/month savings on ACH transfer review
Every day reporting/Fair Valuation of Assets Reporting
Reporting in banking institutions require adding all consistent, fit-for-purpose data. The more extensive, more diverse, and more complex a report, the higher the challenge to meet accuracy, timeliness, and completeness standards over sustained periods.
Fair value reporting is an essential part of financial disclosure that demonstrates the position of a company in the market. Performing fair value reporting quarterly on a marked-to-market basis requires working with loads of data from different data sources and in various formats, which can be challenging and time-consuming.
Increased speed of reporting processes by 60%.
Financial and operational planning
Proper planning is crucial in every industry, so banking institutions have to update business and operational plans every 3 or 6 months to stay up-to-date with market fluctuations. This includes the analysis of numerous spreadsheets and documents, which can take hours from the working time of several bankers. RPA allows people to work on the analytical part of planning, leaving data extraction, and loading automated.
180 hours/month are saved on planning
Account data management
Account management requires manual data extraction from various documents provided by a client and its entry in corporate systems, which takes only 10-15 minutes per client but can round up in several hours per day. There is also an issue with asking permissions to see personal data in complex or legacy systems.
Reduced cost of account data management processes by 14%
Ticketing & customer support services
The speed and accuracy of the answers clients get from customer support managers are crucial for every banking institution that wants to keep existing clients and attract new ones. In order to be effective, managers have to pull data from numerous sources fast and without mistakes, but this is not always the case. RPA creates an opportunity to store all of your client data in one place, which allows your team to give advice and answer questions faster.
Increased speed of reporting processes by 51%.
Processes in the Banking Industry that benefit from
Benefits of using Robotic Process Automation in Banking
Ready to automate your business processes in
Talk to our automation experts to learn how you can get started