Robotic Process Automation (RPA) is already empowering enterprises to enhance efficiency, productivity, performance and customer satisfaction by automating their processes. Coalesced with AI, RPA has the potential to manage business processes, track them and drive value from them for companies. Its application now has expanded to the BFSI sector, leading to an increase in the productivity of banking services. Since the sector is slow to adopt innovative technologies, unlike other domains, now banks are realising the potentials of RPA software.
Reportedly, Japan’s largest banks including Sumitomo Mitsui Financial Group Inc. (SMFG), Mitsubishi UFJ Financial Group Inc. (MUFG), and Mizuho Financial Group Inc. (MHFG) recently implemented banking automation through RPA to save labor and operational costs. In addition, major banks like Axis Bank and Deutsche Bank have also deployed RPA in their processes.
As robotic process automation is considered as the essential move towards automation, a recent report from IDC shows that the market of RPA in India will grow up to 49.3 percent by 2022, with the increasing demand for automated accounting and process management. One another report revealed that the global Banking, Financial Services, and Insurance (BFSI) robotic automation market is expected to reach US$835 million by 2020, at a growing CAGR of 75 percent.
This market pace shows that the adoption of RPA software in the BFSI industry is now gaining momentum and banking organizations will focus on investing for training and ownership of the automation technology.
In the banking sector, RPA serves as an effective tool to deal with the pressing demands of the banking services and assist companies to maximize their efficiency by lessening costs efficiently.
Automation in Banking
With the rising data on a daily basis, several banks across the world believe the use of RPA will minimize errors and human efforts in the banking operations. Also, several banks are rushing to integrate the latest automation technologies to deliver the next wave of productivity, cost savings, and improvement in customer experiences.
RPA enables banks and finance companies to trim down manual efforts, deliver better compliance, alleviate risks, and augment the overall consumer experience. In banks and financial institutions, automation is also useful as it doesn’t require additional infrastructure coupled with its low-code approach.
Robotic process automation is described as part of a continuum of technology-driven initiatives to create intelligence into automation of business processes. The technology is majorly aimed at assisting in processing the banking work that is repetitive and monotonous in nature. It helps financial institutions in boosting their productivity by engaging customers in real-time and capitalizing on the capabilities of robots.
For validating and approving credit card application of a customer takes weeks that make them wait long period and leave them dissatisfied, or sometimes cancelation of requests. But embracing RPA software, banks can now accelerate the process of dispatching the credit cards within a fraction of hours. The BFSI sector can also take many advantages of RPA by implementing it into banking operations.