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Robotic Process Automation RPA in Financial Services

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    October 27, 2021
Robotic Process Automation RPA in Financial Services

Financial institutions, banks, and insurance companies are transforming core functionalities for addressing particular industry disruptions from digital and FinTech technologies. Improving efficiencies and optimizing operations imply more than only outsourcing processes and upgrading systems. All of it implies innovation. Using RPA, or Robotic Process Automation, to improve the accuracy and speed of fundamental business procedures is one method to assure innovation.

Industry research has revealed that RPA or Robotic Process Automation is capable of driving around 25 to 50 percent cost savings through the automation of repetitive tasks and data-intensive operations. It also helps in improving the efficiency and accuracy of process execution. RPA serves to be a software-based approach. RPA, which functions as a virtual worker, assists in reproducing user-specific activities to prevent or reduce human involvement in manually-intensive, repetitive, and tedious operations.

Banks and financial organizations might expect to improve accuracy and efficiency by automating the provided set of manual activities.

Furthermore, virtual employees may be deployed around the clock to reduce latency and increase productivity.

Understanding Robotic Process Automation in Financial Industry

In the increasingly saturated financial and banking sector, financial institutions must remain competitive, continually evolve, and deliver exceptional customer services to end-users.

In the current era, financial institutions and the banking industry as a whole are under enormous pressure to increase efficiency while lowering total expenses. Some of the additional challenges that the banking sector is currently facing include a rapid rise in personnel costs, scarcity of skilled resources, and the requirement to improve efficiency in day-to-day operations. All of these together have given way to the implementation of RPA consultant solutions.

RPA in Financial Services for Reducing Costs and Improving Accuracy

Financial operations offer a significant opportunity to increase regulatory adherence and team member efficiency with various time-consuming and labor-intensive procedures and workflows. If we talk about financial automation solutions - Adopting RPA or Robotic Process Automation enables financial players to effectively automate simple & complex workflows while gaining major wins and profit margins. With RPA, financial and banking service stakeholders can relieve bandwidth for the teams focusing on tasks requiring a strategic approach and human expertise. 

The figurative robots can help in accomplishing all minor jobs –right from moving data from a single application to another, simulating repetitive actions like dropping, dragging, typing, and clicking, and so more. Integration of Machine Learning and Artificial Intelligence models can power the bots to get knowledge from experience while progressively reducing human intervention. For finance professionals and accountants, RPA solutions can help in multiplying efficiency significantly. You can achieve the same through reliable finance-specific mobile app development services. 

RPA Solutions in Banking

Robotics in the field of banking & finance involves the utilization of a robust RPA software solution for:

  • Developing virtual assistants or building an Artificial Intelligence workforce
  • Installing desktop, along with other device-level, user-centric software robots

In the banking industry, RPA solutions serve the role of a functional tool for addressing the increasing demands of the entire industry. It also helps the parties involved in maximizing efficiency by minimizing costs with the unique service-through-software model.

For leveraging the given opportunity, financial institutions and banks should look forward to adopting a strategic approach. A study report predicts a second wave of AI and automation in the coming years in which software bots and machines will be capable of executing around 10 to 25 percent of operations across a wide range of financial tasks. These can also help with the expansion of the entire capacity and offer the workforce the reliable opportunity to focus on priority projects. 

The quick expansion of RPA solutions in the banking and financial sector may be forecasted by the fact that the industry will be a magnificent 

$2.9 billion by the year 2022. It is a sharp rise from the 2016 reports of $250 million. 

Role of Automation in Banking and Finances

Financial services robotic process automation - according to reports, financial institutions and banks have spent $321 billion on compliance penalties and operations over the previous decade. Banks are expected to disburse approximately $270 billion annually only on compliance operations. Almost over 10 percent of the operating costs of banks are due to compliance costs. 

Increasing operating costs, compounded by regulatory fines in addition to intense regulatory requirements make the processes slow while resulting in poor customer experiences. To throw more individuals towards finding new & better ways for managing compliance while reducing operational costs is not the solution.

RPA solutions enable finance and banking companies to minimize manual efforts. Therefore, this offers improved compliance while mitigating risks and enhancing the entire consumer experience. Furthermore, because of its low-code approach, automation is extremely ideal for financial organizations and banks.

Processing Banking and Financial Services with RPA (Robotic Process Automation)

The primary objective of RPA in the finance and banking industry is assisting in the operations of banking work that turns out to be manual-intensive. RPA helps financial institutions and banks in improving overall productivity by engaging customers in real-time and harnessing the benefits offered by robots.

RPA serves to be an extensive process. It requires robust team member training, governance, and structured inputs. However, once the same has been set up and implemented effectively, the RPA-focused banking robots can take total control of the system (including keyboard and mouse) actions. It would include opening and clicking on applications, copy-pasting information from one system to another, sending emails, and so more. 

Use Cases of RPA Solutions in Banking and Financial Services

As it is possible to apply RPA to a series of business automation projects, you can come across several use cases of advanced RPA solutions in the banking and financial sector.

  • Automatic Report Generation: Generation of compliance reports in case of fraudulent transactions through suspicious activity reports or SARs turns out to be an ongoing requirement of financial and banking institutions. RPA technology, with its revolutionary language generation capabilities, can go through lengthy and complicated compliance documents before obtaining relevant information and filling the SARs.
  • AML (Anti-Money Laundering) and KYC (Know Your Customer): Both AML and KYC tend to be highly data-intensive. Therefore, these are highly suitable for RPA. Whether it is recognizing fraudulent banking activity or automating laborious procedures, RPA deployment saves both time and money compared to traditional financial solutions.
  • Customer Onboarding: In typical banks, customer onboarding turns out to be a complicated, lengthy process. This is because there is the involvement of multiple documents for manual verification. RPA seeks to make the procedure more frictionless by extracting data from the relevant KYC papers using the OCR technology (Optical Character Recognition). The data is then matched against information offered by customers in the form.
  • Mortgage Lending: RPA ensures easy automation of multiple tasks that are crucial to the process of mortgage lending. It would include document processing, loan initiation, quality control, and financial comparisons. All of it leads to improved customer satisfaction. 

Concerning mortgage lending, another benefit of RPA is removing the burden from the employees for executing manual tasks. As such, employees can focus on high-value tasks for improved productivity.

  • Account Opening: With the RPA solution, the otherwise highly complicated and labor-intensive process of account opening becomes straightforward and seamless. Automation systematically aids in the elimination of frequent data transcription mistakes that occur between new account opening procedures and core banking activities. Therefore, it helps in improving data quality throughout the system.
  • Loan Processing: Traditionally, loan processing is regarded as a tedious and gradual process. RPA helps in accelerating the process effectively.

Also, read - Ultimate guidelines to a successful RPA implementation

Benefits of RPA in Finance and Banking


Robots tend to be highly scalable. This feature allows you to ensure the management of higher volumes of transactions even during peak hours. This is achieved by including more robots and delivering responses to any given situation in real-time.

Moreover, RPA solution implementation enables banks and financial institutions to focus effectively on using innovative strategies for growing the respective businesses by relieving employees from mundane tasks.

#Effective Cost-savings

Most out there argue that RPA does not help in reducing costs. However, it is not true. RPA solutions help in delivering improved value addition to the entire organizational efficiency and benefits. On the other hand, multiple implementations reveal lucrative information.

Banks and financial institutions always keep looking for effective ways to minimize costs in the highly competitive industry. This can be effectively achieved with the help of RPA solutions. Research reveals that RPA implementation is capable of driving cost-savings of around 25 to 50 percent. This helps in enhancing the output metrics of different functions.

#Agile Business Adoption

With ever-increasing technology penetration and globalization across all industry verticals, banks are required to be highly agile as well as flexible than ever before. With the help of advanced RPA solutions, banks and financial institutions receive the opportunity to be prepared for any given situation while responding in no time.

Moreover, relieving human resources from day-to-day mundane tasks, the improved focus is delivered to innovative strategies for driving more business. 

#Expediting Business Efficiency

Banks and the entire finance industry play a vital role in influencing the country’s economy. When the banks and financial institutions become highly efficient, it tends to have a direct impact on several other industries. 

RPA serves to be an extensive solution requiring team member training, comprehensive setup, and governance. However, once it is set in place, research reveals that banking institutions are capable of saving as much as 40 to 60 percent in the 1st year of RPA implementation. This helps in making processes faster and highly efficient.

#Minimized Business Response Time

Banks are increasingly incorporating RPA (Robotic Process Automation) solutions for ensuring quick process execution and maximum operational efficiency. Research has it that banks can look forward to saving around 75 percent of the total costs while retaining top-notch quality output. RPA is disrupting how banks and financial institutions tend to operate.

#Ample Growth with Legacy Data

With the help of modern technology, we are capable of digitizing data from paper-based entries while making it available for modern businesses. With the help of RPA solutions, banks continue using new and legacy data for bridging the gap between multiple processes. As data is made available in a single system, it allows for the creation of faster and improved reports for innovative business strategies.

#Using the Existing Business Infrastructure

Implementation of RPA solutions does not entail setting up a completely new infrastructure. The unique feature of RPA technology enables it to ensure integration with any system –without paying attention to the development technology used. Therefore, the solution becomes available throughout the enterprise. 

Banks have already started using RPA solutions in Human Resources, sales, operations, Admin, and finance functions for optimizing processes with reduced cost and improved efficiency.

#Instant Implementation Sans Coding

Most of the advanced RPA tools or systems like AutomationEdge help in providing innovative drag-and-drop technology for automating the entire process. The given technology enables the creation of automation workflow with minimal or no coding. This makes the solution easy to implement and maintain.

Steps to Deploying RPA in Finance and Banking

Robotic process automation in finance - The implementation of RPA solutions in the financial sector usually commences with the identification of feasible and accurate processes. Financial and banking companies must select the right processes while assessing the same depending on the overall impact. 

Here are some important steps to keep in mind while ensuring successful RPA implementation:

#In-depth Assessment

Businesses must ensure thorough assessment as well as detailed analysis of the current situation. It helps in shortlisting the processes that serve as suitable for effective RPA implementation. You can create a list of core operational issues in your organization that need addressing and resolution through RPA. This should be followed by analyzing the feasibility and impact of the solutions.

#Making a Business Use Case

The next step involves the calculation of efficiency and component gains to be delivered through Robotic Process Automation implementation in the organization. Additionally, it is recommended to conduct a comparison of RPA benefits depending on multiple factors including efficiency, time, efforts, and resource utilization. Moreover, it is also important to ensure that you are setting realistic and achievable goals concerning ROI and cost savings for avoiding any confusion.

#Preparing a Comprehensive Execution Strategy

Depending on the specific business requirements, it is important to select the right operating model as well as workforce. This helps in managing the overall execution process seamlessly. At the given stage, it becomes vital to look for the right partner or mobile app development company for ensuring end-to-end Robotic Process Automation implementation. It should include planning, support, and execution.

You should note that not all RPA vendors will fit the specific needs of your company. Therefore, when you choose the right RPA solution and RPA consulting services, it could be impactful concerning the outcomes of the project. 

Automating Mortgages and Lending with RPA Implementation in the Finance Sector

A core area of the banking and finance sector in which RPA is setting records is the mortgage and lending field. With the total number of routine processes that are involved in purchasing a house –right from credit checks to employment verification, inspection reports, title orders, and so more, Robotic Process Automation has served to be the ideal solution capable of taking over a number of these tasks without any human intervention. Therefore, it significantly helps in boosting efficiency, minimizing loan-processing times, and reducing total turnaround times.

RPA assists in controlling the visibility of specific activities that must be completed as a critical element of the overall process for the majority of lending-based operations. With workflow automation, every step of the complicated lending process becomes electronic. It implies that you are capable of collecting data with every step. Searching for a loan application for analyzing its current status has now become a thing of the past. You can now consider searching for documents within the detailed document management system for finding out its process status. Therefore, it significantly helps in improving the lending experience of the customers. 

RPA also delivers a major impact on the compliance activities of banks. It is especially beneficial due to the ever-rising costs banks are expected to bear for adhering to increasing regulatory specifications in the past few decades. Especially, RPA helps eliminate the requirement for manual processes in association with KYC and AML.


Many financial institutions and banks have already started with RPA implementation in their respective operations. It is because they aimed at delivering point-based and realistic solutions that are easier to implement and quick. Robotic process automation in finance and accounting - RPA technologies, when implemented effectively, have the potential to be revolutionary for the whole financial and banking sector. It is achieved through automating repetitive, monotonous work in these industries. As a result, the automation of such monotonous operations results in improved productivity, reduction in error rates, and an excellent turnaround time. 

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