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FastPath Automation
FastPath Automation

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Which are the most automated processes in the banking industry?

Robotic Process Automation is a match made in Heaven for the banking sector. All the repetitive, tedious, labor-intensive, rule-based tasks in the banking industry can now be automated with simple software bots. Software robots can automate high-volume business processes by implementing pre-programmed procedures to optimize costs and improve operational accuracy. They also ensure better talent management.

One of the biggest RPA advantages is its ability to intelligently imitate all human activities, at the primary user interface. Let's look at five of the most automatized processes in the banking sector that have been fully digitalized with a touch of automation.

Loan processing

Loan Processing is among the slowest processes in the banking industry. RPA can speed up long-running processes by reducing them to 10-15 minutes.

Automation allows the extraction of relevant information from customer documents to verify all details. Machine learning is supported by statistical approaches that are simpler and more reliable to make more informed decisions based upon data analytics. Intermediary bots create business logic by asking users to correct errors, ensuring safer loan decisions and automatic confirmation letters.

Account Closure

Banks struggle to manage the account closing process that takes too much time high. Client non-compliance is the main reason for this overburden leading to late submissions of mandatory documents.

RPA allows banks to address this problem by seamlessly tracking all accounts, sending them automated notifications and reminders for timely submissions, and continuously tracking them. Automated cancellations of standing orders, direct debits, interest rate changes, fund transfers, and change of interest rates can all be done online.

Know Your Customers

Knowing Your Customer (KYC) is not only an important compliance process for banks but also the most complex. To perform checks on a customer, this process requires at least 150 to even thousands of FTEs.

Banks spend at least US $500 million annually on KYC compliance. To reduce costs and increase efficiency, banks have begun to use RPA to collect customer data, screen it and validate it. Banks can complete KYC in a shorter time with less staff and fewer errors.

Anti-Money Laundering

AML is one of the most complex and data-intensive processes that can be simplified with RPA. RPA implementation has proven to be more cost-effective than traditional labor-intensive banking solutions in terms of catching suspicious transactions and automating manual processes.

Accounts Payable

Accounts payable (AP), which requires vendors to digitize invoices using Optical Character Recognition, extract data from every field and validate them quickly, can be confusing and monotonous.

After detailed validations and reconciliations, robotic process automation allows businesses to credit all vendor payments automatically to their account.

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