Robotic Process Automation in the Banking Industry
Use RPA to reduce compliance backlogs & keep costs low
RPA allows banks to run repetitive processes like data entry and customer service more accurately and effectively without overhauling existing systems. This will enable them to reduce costs, turnaround times, and manual mistakes while helping employees focus on high value-added activities.
Studies show that banks are spending an average of $60 million annually on Know Your Customer (KYC) compliance. When done manually, this process is time intensive, so banks have started using RPA bots to collect customer data, screen it, and validate it. At this point, portions of the process can be handled by the bots, with edge cases being sent to human team members for help. But dedicated RPA solutions are in the works for the entire KYC process.
According to Kofax: “When tackling KYC compliance, for example, these robots eliminate manual regulatory data collection and monitoring. The robots interface directly with disparate internal systems and external websites or databases and automatically select all of the information needed to authenticate an individual’s identity. The robot will automatically check the individual’s supplied information against any number of data sources such as sanctions lists from the U.S. Treasury and Immigration and Customs Enforcement, data from regulatory agencies (such as SEC) and law enforcement agencies (FBI, Interpol), credit bureaus, telephone companies, post offices, DMV, etc. And, importantly, multiple data sources can be queried simultaneously.”
RPA bots can eliminate the manual copying and pasting of information between disparate banking systems. Danske Bank reportedly was able to eliminate 6-7 full-time jobs with its widespread adoption of RPA, mostly through data entry.
United Overseas Bank invested in RPA, and was able to considerably reduce the time taken to process requests for letters of credit from the corporate clients. The bank’s RPA-powered robot “Amy” was also able to extract, filter and feed a large amount of data into the back-end system and complete the task in 40 seconds. Prior to implementing Amy, this task usually would take up to 4 minutes (240 seconds).” (The Straits Times)
Audits & Compliance
RPA bots are now being used to respond to requests by auditors for company audit reports. The bots are able to find all the customer account’s year-end balances and return the audit to the audit clerk in the form of a Word document.
RPA can also be used to conduct Quality Assurance (QA) tests and audits, detect anomalies, and reduce errors. And you know all the regulatory announcements you get? Why not have a digital bot stay on top of them, rather than a human team member?
Credit Card Processing
RPA bots speed up the credit card dispatching process with automated background checks and validation. In the first stage of credit card processing, RPA can be used to automate the KYC process and data collection. Once the customer is approved, the card can be personalized, delivered, and activated through RPA. Any records that fail can then be reprocessed by the digital bots. Once the card is being used, the bots will monitor accounts, identifying delinquent ones and block cards in the case of suspicious activity. When a customer complains, bots can process the complaint and can even do things like give a custom holiday greeting in response.
Automated Accounts Payable Process
This monotonous process involves digitizing invoices from vendors using Optical Character Recognition (OCR), extracting data from the fields, validating it, and finally processing it. RPA bots can easily automate this process without errors, automatically crediting the payment to the vendor’s account after reconciliation of errors and validations.
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