In an interview conducted by McKinsey & Company, Professor Leslie Willcocks from the London School of Economics stated that, in the long run, RPA technology will imply more interesting work for employees.
With RPA, especially, human labor can be shifted from repetitive tasks of low intellectual value to performing more complex and higher-value tasks.
When we look at banking automation, using RPA systems can be a great option to streamline routine tasks, from fraud detection to loan analysis and approval.
So, to keep a financial institution competitive and appealing to customers, it’s necessary to implement new technologies capable of optimizing business processes. If you want to know how banking automation can help your business, just keep reading the article!
What is banking automation?
Banking automation refers to the use of technology to automate activities carried out in financial institutions, such as banks, as well as in the financial teams of companies. Automation software can be applied to assist in various stages of banking processes.
Typically, automations are used in repetitive and routine tasks. This way, human interactions are minimized, freeing up labor for more complex and high-value processes. Banking automation is essential for improving operational efficiency, ensuring security, and making financial services faster and more accessible. Additionally, automation can help reduce costs and prevent errors.
Advantages of RPA for banking automation
Automating banking processes can bring various benefits to both institutions and their clients. Check out below:
Cost reduction
Undoubtedly, cost reduction is one of the main benefits of implementing banking automation. Cost reduction can be observed due to various factors. For example, the automation of manual processes allows for the replacement of repetitive tasks, thus eliminating the need for human labor. This process reduces costs associated with human errors that may occur.
Moreover, automating banking routines allows tasks to be completed more quickly and accurately, increasing operational efficiency by reducing the time and resources required. In other words, banking automation generates a more effective and profitable operation.
Learn more: ROI in RPA: how to calculate and best practices
Customer retention
Automating banking processes can assist in the customer retention process because, with automation, customers can access banking services through mobile devices and conduct transactions without needing to visit a physical branch. In other words, customers benefit from more convenience, which can increase satisfaction.
Additionally, with the use of chatbots and self-service systems, banks can offer 24-hour support, allowing customers to resolve issues more easily. Automation can also increase customer satisfaction through the delivery of proactive communications, meaning banks can provide updates on accounts, security alerts, and relevant information in an automated manner.
Operational efficiency
Operational efficiency is also a major benefit of banking automation. This is because it allows repetitive manual tasks, such as data entry, registrations, and document processing, to be automated. As a result, there is a significant reduction in the need for human labor, saving time and resources.
Furthermore, by replacing manual tasks with automation, a significant reduction in the number of errors in processes can be observed, thus aiding in accuracy and consistency in banking processes and reducing the need for rework. There is also an improvement in transaction agility, as using good RPA software allows banking transactions to be processed quickly, enabling institutions to meet customer demands effectively.
Enhanced security
Data security is extremely important for the banking sector, and process automation is introduced to enhance security in the field. Typically, automation systems include advanced data protection technologies such as firewalls, two-factor authentication, and encryption.
These technologies serve to ensure the security of customers’ banking information and protect against hacker attacks and potential data leaks. Moreover, by automating banking systems, it is possible to configure the automation software to monitor suspicious activities and detect patterns of unusual behavior, which helps banks protect themselves against fraud attempts.
Another important aspect of security is that automated systems are programmed to apply security updates automatically, meaning banking activities become less vulnerable to attacks and threats.
Which banking services can be automated?
Now, let’s take a look at the main banking services that can be automated:
Internet banking
Through internet banking, clients can access essential banking services via the web, whether through the use of mobile devices or computers. Thus, the need to visit a physical branch to perform operations decreases, providing greater convenience, security, and control for clients. Here are some examples of services performed in internet banking:
- Checking account balances or savings;
- Accessing account statements with recent transactions, deposits, etc.;
- Pix, Doc, and Ted transfers;
- Bill payments, such as electricity, internet, and water;
- Scheduling bill payments;
- Mobile phone top-ups;
- Card blocking and unblocking;
- Updating personal data.
Fraud Detection
Automating banking processes as a whole also brings benefits for fraud detection. This is because RPA tools, for example, can be configured to continuously monitor banking transactions for suspicious activities. In other words, they can identify unusual transactions or transfers of large amounts.
They are also able to verify documents, such as identities, statements, and proof of income, to detect signs of fraud. Thus, through advanced algorithms, RPA robots play an important role in the proactive detection of banking fraud, helping banks protect their customers.
Customer Service
Intelligent automation in customer service in the banking sector is an effective solution for dealing with high demand, improving operational efficiency, and providing a quality customer service experience. Automating service processes can result in:
- Quick and accurate responses – robots can be configured to answer frequently asked questions 24 hours a day;
- Automation of repetitive tasks – routine tasks such as balance inquiries, statement requests, and personal information updates can be easily automated;
- Reduced wait times – automation enables faster and more accurate responses to customers.
Loan Analysis
The analysis conducted by banks for granting credit to their customers depends on various factors to avoid problems with defaults in the future. By choosing to automate their processes, financial institutions can expedite the decision-making process, reduce human errors, and improve the accuracy of risk assessment.
To do this, it is necessary to develop a process to collect all the information from loan applicants, use algorithms to validate the data and ensure integrity, and also develop risk analysis models. This entire process, being routine and repetitive, can be easily automated with a good RPA software.
Learn more: What is process mapping and how to do it for RPA?
Ready to take the first step in banking automation?
We hope this content has clarified the main doubts about banking automation. Understanding the advantages that new technologies can bring is essential to keep your company ahead of competitors.
To succeed with automation, it is essential to choose a comprehensive RPA platform, such as BotCity. In it, you will find an orchestrator capable of executing robots, operating in parallel processing, executing priorities, and much more.
So, sign up for free on our website or schedule a meeting with one of our specialists right now!
