It is indeed not a surprising element and a recently released invention that AI research, development, and implementation is initiating at the most lucrative points of an industry, and also, in the financial sector that has traditionally meant large size banks with household names. These existing banks have added chatbots specifically for customer use and deployed fresh methods for robotic process automation to enhance business benefits.
Understanding the state of AI adoption in the rest of the financial sector, and raising unusual questions on how can institutions maximize gains by implementing robotic process automation (RPA) in banking?
According to Roberto Valdez, risk advisory services manager for consulting firm Kaufman Rossin, RPA in banking can efficiently offer three major benefits: efficiency, effectiveness, and compliance.
Efficiency is mainly stand out for cost cutting the automation process. Effectiveness for consistency and standardization and compliance ensures companies collaborations for both federal and state requirements for security improvements. Resulting in a wide variety of implementation cases, the Robotic Process Automation benefits remain elusive.
However, the growing usage of cases for Robotic Process Automation in banking is more often a deployment in security processes. With the requirement of data security for enterprises that handle personally recognizable information become more stringent, it’s imperative that financial institution take extra efforts to improve their security environments. Despite claims that RPA can independently improve security, Valdez warns that companies need to address their security infrastructures before implementing RPA.
“If you already have good governance, then Robotic Process Automation is magnifying that,” he said. “RPA takes and amplifies whatever your culture is and makes it even more powerful.”
When a customer requests a service, most of the banks perform manual due diligence screening. Employees enter the effective leads into their database to evaluate the risk, interest rate, and other offerings for the customer. The use of RPA in banking is enabling faster, and more detailed analytics on site.
“We see a lot of RPA being leveraged in the front-line account opening process at this point,” said Jason Chorlins, risk advisory services principal at Kaufman Rossin.
“RPA is being utilized to go out and screen multiple lists, such as the Office of Foreign Assets Control for some individuals who might be on a sanctions list or politically exposed persons (and other factors) that influence the bank’s decision of whether or not to take on the customer from a reputational risk standpoint.”
RPA services are becoming popular with Fintech such as online, technology-focused banking companies. As mobile banking options become more popular for consumers, RPA is being seen as a dynamic tool in the overall industry.
“RPA technology can be utilized to streamline the process, as well as limit the number of human resources that are needed to touch the customer and transactions,” Valdez said.
Moreover, traditional banks focus on their in-house RPA projects on serving typical banking customer service and automating their processes and customer service interactions. Whereas, Fintech companies specifically refer RPA to search targeted communities of financial users which is considerably termed as the unbanked. The unbanked users have risky financial investments with poor credit scores, frequent overdrafts or ATM use, or low monthly deposits that large banks usually avoid.
“With greater financial options, [certain groups of people, age groups and specific populations] gain economic freedom and stronger financial decision-making, as well as important tools to invest in personal or family livelihood,” said Stephen Harkey, CMO of ViVi Holdings, a fintech startup company based in Boca Raton, Fla.
Robotic process automation can enable and aid Fintech to support online banking by automating customer service processes and walking clients through banking service options. As chatbots and RPA bots, uplift with the company, the effectiveness of the technology also rises. This is the case with ViVi’s own customer service chatbot, Vivian.
“If ViVian doesn’t know or the customer answers with a negative phrase, the context will be transferred to a human, but Vivian will be listening to the conversation and will use the solution provided to the human to learn and the next time give the right answer,” Harkey said.