Robotic Process Automation (RPA) means providing a digital solution to any manual business processes. This automation generally entails the use of software robots or the building of virtual assistants/ workforce. Within banking, RPA features are used to simplify large data-intensive processes. They are also deployed to increase risk and compliance measures to avoid manual inaccuracies. RPA works best for the following functions:
- Risk and compliance reporting
- Anti-money laundering and know-your-customer guidelines
- Accounting
- Mortgage lending
- Reconciliations
- Front office
- Cards and Payments systems
RPA is extensively used across banks worldwide. According to a report issued by Gartner, RPA usage in the financial industry is likely to increase from $250 million in 2016 to $2.9 bn by 2022. The use of RPA in the banking industry brings several benefits, as shown below:
- Greater business agility
- Increase of efficiency
- Higher task velocity and throughput
- Better and improved services
- Reduced manual errors
- Improved compliance and risk-related reporting
- Well defined streamlined processes
- Formalized systems with faster processes
- Costs saving
While it is perceived that switching to automation is highly beneficial for banks and the financial services sector, initially, banks in Indonesia were reluctant to adopt the RPA. The main reason for this slow approach was the initial capital costs involved in the adoption. However, as Covid-19 impacted the banking operations and the demand for contactless services raised, banks wasted no time to realize the advantages of RPA-based functions. Banks started to adopt organization-wide projects towards digital transformations across job functions and divisions. All tasks that previously required human intervention were shifted to RPA-based systems, resulting in uninterrupted and impeccable banking services.
Conclusion
Banking is known to be the most data-intensive, customer-centric, process-oriented, and risky industry. Given that people have entrusted their money to be managed by the bank, banks have to be highly compliant and vigilant. Adopting RPA-based services will help banks in an array of benefits ranging from better operational management to quicker processes. The major intrinsic benefits will be the reduction in frauds as well as regulatory risks. These benefits will help in overall improved customer services with uncompromising compliances.
With decades of experience, Mitrais offers a wealth of knowledge, world-class tech expertise along with proven processes executed by remote teams. Rated as Indonesia’s leading provider of offshore development services by Forrester Research, our services are designed to help your business perform to your expectations. Our compelling mix of western innovation and eastern productivity sustains Mitrais in its preeminent position in the Asia Pacific region.
Now, together with UIPath, we provide end-to-end support from the stage of defining RPA strategy and governing policy to the implementation and maintenance support. Contact us now to get a free consultation.
