Amid numerous technological advancements, the BFSI industry has been taking progressive leaps. As the digital landscape evolves, customer needs keep on changing. It opens up a requirement for a shift towards automation to retain a competitive edge and optimize expenses.
The banking, finance, and insurance field faces many challenges like data breaches, scarce assets, rising expenses, and outdated technology. This diminishes customer experience and makes them skeptical. After all, isn’t the finance sector supposed to be the most sophisticated considering the sensitivity of the information it deals with?
There is an immediate need to test banking applications for cost-effectiveness, high accuracy, speed, and efficient information processing. Financial institutions also need to keep track of critical accounts, handle high-volume workflows, and conduct frequent security checks. Overall, they have a lot to accomplish and Robotic Process Automation can be an excellent facilitator.
This post is going to take a detailed look at the role of RPA in revolutionizing the BFSI industry. But before that, we will find out what RPA exactly is. Let’s take a look.
What is RPA?
RPA stands for Robotic Process Automation. It is a process that attempts to eliminate, augment or reduce human efforts for repetitive tasks in the finance sector. The primary industries it helps include finance operations, banking, and insurance.
They give organizations a competitive advantage by allowing humans to delegate their time and energy on high-value tasks that automation alone cannot accomplish. Implementing ML, NLP, and AI-based intelligent automation further enhances RPA. When you bring intelligence into the picture, you are RPA software becomes better at recognizing emotions, understanding layman’s language, handling complicated processes, and adapting to data in real-time.
How Can RPA Revolutionize The BFSI Industry?
According to Forrester, estimates indicate that the RTA market can grow to $22 billion by the year 2025. Anything that reduces human labor and automates repetitive and mundane tasks has the potential to create a revolution. That is precisely what Robotic Process Automation can do for the banking, finance, and insurance industry. Let us take a detailed look at how RPA completely transforms and revolutionizes the BFSI industry.
1. KYC and Customer Onboarding
BFSI businesses can leverage RPA bots to transform conventional onboarding into a simple electronic process. One scenario is the automatic data entry in the customer portal and bots validating the required information across the respective systems. This helps customers quickly open their accounts and improves the overall customer experience.
2. Simplify Lending Mortgages
Lending mortgages is a process-driven task that can benefit from the implementation of RPA. You can easily integrate automation with the existing technology or loan-originating systems. As a result, automating lengthy tasks such as loan package reviewing, drawing financial comparisons, document processing, and loan origination saves resources and time.
3. High Scalability and Operational Efficiency
Everyone knows the highly scalable nature of robots and that they easily facilitate the management of high-volume assignments even during peak hours. RPA implementation allow banks to concentrate more on innovative growth strategies by liberating highly skilled employees from mundane tasks. Once you correctly set up financial institutions, it enhances the bank’s efficiency and productivity of their processes.
4. Improved Cost Effectiveness
Cost-effectiveness is critical for an increased ROI in every industry. The banking, finance, and the insurance sector are no exceptions. Banks can save approximately 25 to 50% of processing costs and time. Another great benefit of RPA is its user interface automation capabilities. Therefore, there is no need to make drastic changes in the infrastructure which reduces maintenance and hardware costs.
5. Error Management
When RTA is sturdily standing by your side, you can stop fretting over human errors. Not only is manually entering the data a killer of productivity, seemingly small errors can have an intense negative impact on customer satisfaction. RPA systems are capable of automatically filling readily available data and information. Therefore, they eliminate the need for employees to manually input values. Consequently, it results in improved efficiency and accuracy.
6. Legacy Rate of a Business Growth
It is crucial to bridge a wide gap between processes using new and legacy data. RPA leverages the available information in a single system to quickly generate high-quality reports which leads to business growth.
7. The Irrefutable Power of Automation
Here is an insight into some processes the BFSI industry can easily automate using RPA.
- Automated Reporting
- Know Your Customer (KYC)
- Anti-Money laundering (AML)
- Account opening
- Customer onboarding
- Mortgage lending
- Loan processing
Apart from this, it can save an organization from hefty fines due to non-adherence to stringent industrial and regulatory standards. Robotic Process Automation also decreases operational expenses, mitigates risk factors, engage customers in real-time, and facilitates seamless functioning of various finance operations.
8. Easy Integration With Existing Infrastructure
A significant benefit of implementing RPA solutions is that financial institutions don’t have to change their entire framework and system. They can easily integrate RPA with the existing infrastructure. The best part, it doesn’t involve hefty costs or drastic changes! Implementing RPA on an existing infrastructure helps automate configuration backup, rule-based tasks, and time-consuming processes at the root.
Summing It Up
With virtual banking institutions and syntax giving tough competition to the already saturated BFSI industry, it’s time for a much-needed transformation. BFSI organizations can start by shortlisting their business processes and start prioritizing tasks based on what needs instant attention and what doesn’t.
As a result of proper implementation of RTA in the BFSI sector, organizations will witness better productivity, quick turnaround time, and a drastic decline in error rates. That is just the tip of the iceberg if their mobile app automation testing game is top-notch! Every minute the banking sector waits to implement RPA is an opportunity for competitors to step up their game and move forward.
There is no scope for debate when we say that automated Banking Domain Application Testing is the future. Robotisation in the finance, banking, and insurance industry isn’t optional. The sooner the BFSI industry realizes this undebatable truth, the faster it will be able to offer its customers a flawless user experience. Of course, as long as you’re using a reputed and credible Software testing platform.