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The fintech industry has always been unsusceptible to new innovations. Post-2020, the global pandemic has brought unusual change to every sphere of our lives, the financial institution being no exception. To strive for success digital transformations have become more recognizable than ever. Here is where cloud solutions and RPA alias Robotic Process Automation in Banking can become a potent problem solver that permits streamlining time-consuming heavy jobs, eliminating human error, extensive cyber security and most importantly cutting down organizational costs.
PwC reports disclose that nearly 81% of bank CEOs are apprehensive about the rapidly changing technology. To add, the challenges are not only to keep costs low and maximize efficiency but also to ensure maximum security. And to overcome these challenges innovative RPA and Cloud computing are effective tools.
Let us dig deeper to know how RPA applications in varied BFSI segments along with cloud storage can refine the financial sector!
As the name indicates RPA (Robotic Process Automation) is utilizing software to automate tedious and monotonous tasks. To add, RPA in banking performs a plethora of tasks including huge calculations, automating transactions, data-processing, and solving complicated problems. Besides this, the BFSI is exploring the possibilities of RPA to lessen-down human labor, increase efficiency and productivity, and complete time-consuming tasks in a faster manner. Not to mention, with the use of RPA the large-scale back-office activities are effectively streamlined which were earlier stalled by bank employees. Scalability, consistency, and cost-effectiveness are some of the key advantages of robotic process automation.
Furthermore, digital
transformation in the BFSI sector could include ameliorating the use of Artificial intelligence (AI) to amplify customer relationships, construct customized financial plans, and automate the debt collection process. Moreover, the BFSI sector is also moving towards cloud solutions for storing voluminous data.
One of the time-consuming processes in the financial sector is customer onboarding as manual verification of documents for each customer is a prerequisite. Plus, setting up a customer’s profile on a different platform and internal system is also imperative, which in turn is quite time- consuming. However, RPA software can simplify the same process by procuring the customer information from KYC documents by using OCR (optical character recognition). The obtained data can be compared with a customer-filled form and in case of any disparity detected or no disparities detected it will be automatically written down in the customer profile. Thus, with the use of RPA, the customer Onboarding process is more accurate and helps in saving hefty time for employees.
The process of approving a loan often goes through multiple steps such as credit score, employment history, repayment history, and inspection, etc. RPA is significantly effective for loan-based activities as it proffers maximum clarity as well as precision across every task in the process.
That said, with the use of RPA the complete loan approval process is automatic i.e., financial institutions can collect and manage customer records at every stage of the loan approval journey. Besides this, RPA in a few minutes can search for necessary information in the document base which may be required for approval or non-approval of the loan. The laborious loan processing activity can be completed in 10-15 minutes with RPA!
To process a credit card there are too many tasks required namely validating customer information, checking customer background, inspecting customer credit history, and verifying records from various sources. But with RPA the credit card process can be done in a few hours as all the information is concurrently obtained from varied systems, then matched with customer data, and verification is finished within a few hours. On the basis of RPA information, the decision of approval of a credit card can be taken. Hence, the entire cumbersome credit card process is faster with the help of RPA benefiting both the parties, increasing bank performance, and higher customer satisfaction rate.
Like other private and public companies, all the BFSI companies need to prepare annual reports for major stakeholders to know how the business has performed in the last financial year. Considering the importance of financial reports there are no odds for financial institutions to make any mistake. With RPA the risk of human error is eliminated as the details are automatically filled in the reports. Therefore, RPA abets the financial institutions in speeding up the reporting process, delivering sheer accurate and true information with their stakeholders.
With RPA integration in the banking sector, the process of account opening can be simplified and faster. Using RPA, the crucial customer data can be procured from the form and the same can be utilized in various other host applications. A similar accounting opening algorithm can be implemented with RPA, making the accounting opening process easy.
Nowadays, Know Your Customer (KYC) is an obligatory process for every customer and bank. In this process, there are more than 500+ FTEs required to perform for customer history. Manually performing these checks requires time and money. So, financial institutions are looking to use RPA to perform and validate customer data, helping save employees time as well as with minimal errors.
How Cloud Computing Is Significant In The Financial Sector? The financial sector in 2030 will completely be different from today, meeting tech-savvy customers’ expectations and comprehending fast-paced digital transformation- the banking sector and other financial institutions need to prepare for the future. Hence deploying cloud computing technology in their growth strategies can help reshape the financial sector landscape. With that said, cloud computing in banking is not just an innovative technology for the BFSI sector instead its destination for myriads of firms to store huge amounts of data and applications in the most secure way. Besides this, many cloud service providers offer numerous PaaS (product- Service-Systems) also known as Product-as-a-Service that helps banks to deliver relevant products in the market quickly, amplify revenue, and enhance customer insights. Also, with cloud solutions financial crimes (fraud and money laundering) can easily be curbed as thousands of transactions can be scanned per second, helping banks combat fraudster activities.
The financial sector in 2030 will completely be different from today, meeting tech-savvy customers’ expectations and comprehending fast-paced digital transformation- the banking sector and other financial institutions need to prepare for the future. Hence deploying cloud computing technology in their growth strategies can help reshape the financial sector landscape. With that said, cloud computing in banking is not just an innovative technology for the BFSI sector instead its destination for myriads of firms to store huge amounts of data and applications in the most secure way. Besides this, many cloud service providers offer numerous PaaS (product- Service-Systems) also known as Product-as-a-Service that helps banks to deliver relevant products in the market quickly, amplify revenue, and enhance customer insights. Also, with cloud solutions the financial crimes (fraud and money laundering) can easily be curbed as thousands of transactions can be scanned per second, helping banks combat fraudster activities.
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