The future of banking, financial services and insurance (BFSI) companies look different from today. Because:
Amongst different industries, the banking, financial services and insurance (BFSI) industry deals with massive customer interaction. With emerging technologies and new business models, the BFSI sector faces changing consumer expectations. As per Gartner’s Leadership Vision for 2022, the pandemic has accelerated business initiatives to adapt to the demands of employees, customers and other stakeholders. To fulfill these demands, implementing robotic process automation (RPA) in banking and financial services has become an effective tool. That paves the way for digital adoption to become the future of banking and financial services.
The adoption of robotic process automation is already transforming BFSI companies.
- Capital One constantly improves its digital banking experience. AI assistant is the recent addition to enrich CX. The company ranked #1 for customer satisfaction in 2020’s J.D. Power rankings.
- TD Bank, with its 1,200 branch locations, leverages data analytics to enhance its digital offerings and omnichannel experience. Hence, TD Bank is referred to as America’s most convenient bank.
- Ally Bank optimizes CX using data and develops a 360-degree view of the customer for hyper-personalization. It helped the bank to emerge as a leader in the online retail banking space.
RPA streamlines the following key processes in banking, finance and insurance sector
RPA implementation can automate many processes, including credit assessment, accounts payable, account reconciliation and fraud prevention. This can make these processes quicker, easier and more accurate. For now, we will focus on some of the most common use cases of RPA in the BFSI sector.
Customer onboarding and KYC
An excellent first impression is critical to a good customer experience. For most customers in the BFSI industry, that first impression occurs during onboarding. Traditionally, new customer onboarding entails filling out and signing stacks of paper. It adds an administrative burden to onboarding teams, increases the risk of process bottlenecks and puts customers’ patience to the test.
BFSI companies make it simple for their customers by transforming traditional onboarding into an electronic process rather a manual, paper-based one. From there, companies can use financial process automation to speed up key parts of onboarding. For example, RPA bots can validate information across multiple systems. Data automatically enters into the customer management portal without any discrepancies. Implementing RPA helps customers open their accounts much faster, enhancing overall CX.
If you would like to learn more about how RPA implementation can revolutionize customer management, read this blog on integrating RPA with Salesforce and other CRMs. The blog details the benefits of RPA integration with Salesforce and how implementing RPA can streamline key CRM processes.
Account closure processing
Account closure is undoubtedly one of the most lengthy and time-consuming processes. The process starts with the identification of an account closure request. Other essential tasks include:
- Communication with customers
- Checking their outstanding loans
- Requesting documents
- Canceling direct debits and standing orders
- Transfer of funds
RPA is an effective tool to automate these activities. The key benefits of RPA in account closure are: reduced time it takes to process service requests as well as improved productivity and better data maintenance. RPA can send an alert to the bank manager and update bank records when the closure process is completed. It can also change the status of the account closure request.
Mortgage lending is an important service area for any financial institution. Being a process-driven area, it is an ideal candidate for RPA automation. RPA implementation and clearly defined rules can handle even the process exceptions. Moreover, the technology can be used with the bank’s existing loan originating systems, thereby driving improvement without infrastructure disruption.
RPA can automate tedious and time-consuming tasks like loan origination, document processing, quality assurance and control, financial comparisons and loan package review. This can help businesses save time, make faster loan approvals and improve customer satisfaction. This also enables companies to free up the resources so they can focus on more high-value tasks.
Faster and accurate claim processing is a top priority for insurance companies. Collecting and verifying information from various bank websites can be quite data and document-intensive. It requires agents to check the accuracy of the data carefully. This often results in delayed claim compensation, annoying customers in desperate need.
RPA enables quick data gathering from various disparate sources, whether it is in a paper-based or digital format. Huge amounts of claim data can be moved quickly to centralized storage for validation. This reduces the overall claim processing time from days to hours. Moreover, financial process automation can also avoid the errors caused due to missing customer claims, or collecting and entering wrong information.
Learn what businesses can do more with automating mundane tasks by implementing RPA in banking by reading why you need to implement robotic process automation in enterprises. The blog also details the importance of RPA implementation.
Who does not want to gain monetary benefits? Everyone. But apparently, many are unsure of where to begin. Those who turn to the Internet for assistance find informative financial advice but too broad to be helpful. Banks can grab this excellent opportunity by digitally connecting customers with in-house financial advisors and providing advice tailored to each customer’s specific needs.
Using CRM technology, you can collect and analyze data, and create detailed customer profiles. BFSI companies’ in-house advisors can use that data to gain a 360-degree view of the customer and their unique situation. This level of comprehension is valuable as it empowers advisors to provide personalized advice to customers at each stage of their financial journey. It strengthens customer relationships and ensures customer loyalty.
RPA implementation in the BFSI industry
Implementing RPA solutions in businesses such as banking and insurance begins with identifying the right processes. BFSI companies need to shortlist their processes and assess based on issue type, feasibility and overall impact. They must build a strong business case for using RPA in the selected process, emphasizing the potential cost savings, efficiency gains and other benefits. Most importantly, identify a partner that can help with the end-to-end implementation of RPA.
At Softweb Solutions, our RPA experts help BFSI companies to ensure successful RPA implementation. From RPA assessment, development and implementation to support and maintenance, we host various RPA-related services. Contact us if you have any queries regarding RPA implementation in the BFSI sector or are planning to implement it.