Senior Functional Consultant, Konstantine Tzirtziris, explores the ways that robotic process automation (RPA) in banking is a true tool for transformation.
The robots are coming for you!
Well, not really. Let’s take a step back first. There are not any real robots. Not physical or mechanical ones at least. What we refer to as “robots” is software that uses different software to perform tasks. But why do we care about what these robots can do, and how are they beneficial in the banking sector?
Simply put: Accuracy, efficiency, cost-saving and employee empowerment
The world of banking and financial services is fast-paced and fast-evolving, and accuracy and efficiency are paramount. In the pursuit of both sustainable enterprise growth and competitive advantage, the underpinning metrics which enable this progress are becoming increasingly important. Being able to show efficiency in cost to serve, cost to acquire or cost to manage is key in delivering the overarching corporate ambition.
With the efficiency focus also comes a need to keep pace with pervasive consumer regulation requiring banks to adequately demonstrate, amongst other things, ‘customer fairness’ in how they deliver their products and services to market. Robotic Process Automation (RPA) is revolutionising the way banks operate bringing opportunities to manage costs, drive revenue or systematically manage data in a way that supports many of the aims of regulation. It has the potential to bring unparalleled efficiency, accuracy, security and cost savings and opens up possibilities for scalable growth beyond the current ambitions.
Among the various RPA tools available, Microsoft Power Automate Desktop (PAD) stands out for its versatility and integration capabilities, particularly benefiting the banking sector.
Overview of RPA within PAD from Microsoft Learn
Why is RPA crucial for banking?
The opportunities to re-imagine how customer journeys can be delivered leveraging RPA are endless. The power of RPA lies in its ability to automate the simple to the highly complex, allowing a fresh perspective on what is possible. Routine and repetitive tasks that require manual input can be automated allowing employees to focus on higher-value activities.
Just like people, a bot can perform tasks such as entering or extracting data, understanding what is displayed on the screen, navigating systems and beyond. The difference is that it can do the core tasks infinitely faster, with absolute consistency and accuracy.
PAD can combine User Interface (UI) interactions as well as API capabilities to emulate human actions. In the banking sector, where customer responsiveness is key, precision and speed are crucial. RPA can significantly reduce the time and effort spent on those tasks. From data entry, reporting and compliance checks, Power Automate reduces the time and resources spent on routine processes. This shift not only accelerates business workflows but also minimises human error and enhances reliability. This allows organisations to rethink their operating models and approach.
Microsoft Power Automate Desktop: A tool for transformation
Microsoft PAD extends the capabilities of RPA specifically for the banking sector. It is a user-friendly platform that allows banks to create and implement automation workflows with ease. Its integration capabilities with existing banking systems as well as other Microsoft products are particularly noteworthy making it a versatile tool for various banking functions.
In the context of increased productivity, efficiency and accuracy, let’s explore some use cases where PAD can be particularly valuable in the banking sector:
1. Customer Onboarding
The secret to success for banks is to be customer-centric, but this can be challenging when employees are inundated with tedious and repetitive tasks, even when a process is digital in nature. For example, New Customer Onboarding is one of those routinely long and repetitive tasks that can take up valuable time and resources. Those mundane tasks can all be performed by RPA.
Customer information like name, address, income and credit history can be verified against external sources and efficiently entered into the bank’s internal systems. Additionally, RPA robots can streamline tasks by automatically populating forms with data extracted from submitted documents, thereby eradicating the need for tedious manual data entry.
KYC (Know Your Customer) can also be handled by RPA if there is no specialised integration to do so. This also includes extracting information from documents and verifying their accuracy, conducting KYC checks and populating the customers’ profiles. It can also generate documents and connect with the customer in the process of opening their new account.
A smooth and efficient onboarding process can increase customer satisfaction and loyalty, thus leading to more referrals and a higher customer acquisition rate. The optimisation of onboarding application processing is a clear benefit for Financial Services – you can discover more by reading our recent article by Principal Dynamics Consultant, Kritika Nigam.
2. Loan origination and loan processing
Loan origination and processing is arguably one of the most tediously slow processes in the industry. Backed-up queues and long-winded processes can result in months to fully process a loan application. It is a very cumbersome procedure for loan officers and a terrible experience for the customers.
RPA can streamline the entire loan process from start to finish. From the original application handling to underwriting to disbursement, RPA can cut down the process from months to minutes.
Document verification, borrower information, credit checks and assessments can be accurately performed automatically as well as updating various loan management systems, which would otherwise be done manually. RPA aids Financial Services by efficiently retrieving, extracting and inputting data, and as a result, accelerating the processing time of loans.
The same benefits apply to Mortgages, Credit Card applications and simple Fund Transfers – not to mention a more personalised customer experience as RPA robots can make suggestions based on previous products or interactions with the Bank.
3. Risk assessment
RPA possesses the capability to autonomously examine different scenarios and pinpoint risks by utilising data from audits, patterns and reports. This form of automated risk evaluation not only outpaces manual analysis in speed but also surpasses it in accuracy. By leveraging sophisticated algorithms, RPA efficiently processes vast amounts of information, thereby enhancing the precision and reliability of risk assessments over traditional manual methods.
4. Security, fraud detection and prevention
The emergence of advanced technologies has led to a proliferation of banking frauds. Consequently, it becomes virtually unfeasible for banks to manually scrutinise each transaction in real time to discern fraudulent patterns.
RPA employs an efficient ‘if-then’ approach to swiftly identify potential frauds and promptly alert the relevant department for immediate resolution. To learn more about the impact of RPA alongside the Microsoft ecosystem in managing fraud activity, access our Fraud24 series.
Anti-Money Laundering (AML)
RPA simplifies the data-heavy processes of AML, streamlining tasks from identifying suspect bank transactions to automating routine procedures. Implementing RPA has demonstrated efficiency by saving time and reducing costs more effectively compared to traditional, labour-intensive banking methods.
5. Customer service
PAD further enhances the overall customer service experience for banking institutions. With a 24/7 availability through self-service options and query resolution without human intervention it revolutionises the way a customer interacts with the organisation. It enables personalised interactions with customers, streamlines complex processes and gathers valuable data insights for continuous improvement. By freeing up this valuable time for employees to focus on addressing the more important customer inquiries and resolving issues promptly, PAD improves efficiency and overall customer satisfaction, ultimately driving loyalty and business growth.
Why Power Automate Desktop?
Power Automate stands out in the market for several reasons. Firstly, its seamless integration with the Microsoft ecosystem, including Microsoft 365, Dynamics 365 and Azure services, provides users with a familiar environment and facilitates easy adoption for organisations already using Microsoft products. Secondly, its versatility and scalability make it suitable for automating a wide range of processes, from simple tasks to complex workflows, with the ability to handle large volumes of automation needs. Additionally, Power Automate’s intuitive interface, rich set of pre-built connectors and extensive library of templates enable users to quickly create and deploy automation solutions without the need for extensive coding expertise. Lastly, its cloud-based architecture ensures reliability, security, and accessibility, empowering organisations to streamline operations, boost productivity, and drive innovation effectively.
Incremental is in the top 1% of Microsoft’s global network of partners. If you would like to learn more about RPA and Power Automate’s potential within your organisation, contact our team of experts today.