Professional Documents
Culture Documents
Summer 2022
THE IMPORTANCE OF AUTOMATION PROCESS & TECHNOLOGY IN BANKS 2
Abstract
Without question, digital technology has made front-end operations at banks considerably
simpler. Consumer accessibility and comfort have risen due to the simplicity of downloading a
check via a banking app rather than going to a physical facility. The success and expansion of a
company depend just as much on the back-office accounting functions of a bank. Scalability and
monitoring of the financial close are far more challenging when using conventional approaches,
such as manual processes and spreadsheets. For all accountants and financial staff, switching to
automation software for the financial closure process improves workflow and creates a number
of new options (Clem, 2020). In this paper, the importance of automation processes and
technology in offering greater customer service and better workflow in banks is discussed.
Table of Content
Abstract 2
Introduction 4
Power of Automation in Banking 4
Uses of RPA in Banking 5
Automatic Report Generation 5
Customer Onboarding 6
Know your customer (KYC) and Anti-Money laundering (AML) 6
Account Opening 7
Mortgage lending 7
Loan processing 8
The Role of Technology in Customer Satisfaction in Banking 8
Lower Costs and Increased Efficiency 8
Increased Personalization 8
Better Customer Retention 9
Fewer Human Errors 9
Ease of Use 9
Efficient Service 9
Conclusion 10
References 11
THE IMPORTANCE OF AUTOMATION PROCESS & TECHNOLOGY IN BANKS 4
Introduction
Banks and other financial institutions are currently under intense pressure to reduce
expenses and increase productivity. The banking industry also has difficulties with a lack of
trained workers, the need to improve process efficiency, and a dramatic rise in labor expenses, all
of which have led to the use of robotic process automation (RPA) (Maruti Techlabs, 2019).
The use of robust robotic process automation software to install desktop and other end-
user device-level software robots and to create an artificial intelligence workforce or virtual
assistants is the primary definition of robotics in banking and finance. RPA in the banking sector
is a helpful instrument for meeting the urgent needs of the industry and assisting banks in
Techlabs, 2019).
Banks and financial institutions need to adopt a strategic strategy rather than a tactical
one to take advantage of this potential. In the coming years, machines and software bots will do
10 to 25 percent of operations across a variety of bank functions, increasing total capacity and
According to reports, banks and financial institutions have spent more than $321 billion
on fines and compliance-related procedures over the past ten years. Banks are thought to spend
account for around 10% of a bank's operating expenses (Maruti Techlabs, 2019).
THE IMPORTANCE OF AUTOMATION PROCESS & TECHNOLOGY IN BANKS 5
According to (Maruti Techlabs, 2019), rising operating costs, added to regulatory fines
and strict regulatory standards, slow down procedures and have an adverse impact on the
customer experience. There is no way to solve the dilemma of managing compliance while
Robotic process automation can help banks and finance organizations save human labor,
provide better compliance, lower risks, and improve customer satisfaction overall. Automation is
best suited for banks and financial institutions because it uses a low-code approach and doesn't
RPA's main objective in the banking sector is to help with the processing of repetitive
banking tasks. By involving consumers in real-time interactions and taking advantage of robots'
many advantages, robotic process automation (RPA) aids banks and other financial organizations
RPA is a lengthy procedure that calls for in-depth personnel training, organized inputs,
and oversight. These RPA-based banking robots can, however, fully handle system (mouse and
keyboard) actions, including clicking & launching programs, sending emails, and pasting data
from one financial system to another, once set up and executed appropriately.
Traditionally, compliance officers are expected to physically read all of the reports and complete
the SAR form with the appropriate information. This makes it a labor-intensive, highly repetitive
RPA technology can go through this lengthy compliance paperwork and generate natural
language before extracting the necessary data and submitting the SAR. For best results, the
compliance officers' suggestions for the portions of each document that correspond most closely
to each area of the report can be used to train the RPA program. This not only aids in lowering
operational costs but also cuts down on the amount of time needed to complete the activity.
Customer Onboarding
Bank customer onboarding takes a very long time since various documents need to be
manually verified. By employing optical character recognition to extract the data from the KYC
documents, RPA can significantly simplify the procedure (OCR). The information that the
customer gave in the form can then be compared to this data (Maruti Techlabs, 2019).
automatically entered into the client management interface. RPA automation in client onboarding
not only assists in preventing manual errors but also helps staff save a significant amount of time
and effort.
Both KYC and AML are very data-intensive processes, thus RPA is best suited for them.
effective in saving time and money by automating tedious operations and identifying fraudulent
Account Opening
The lengthy account opening procedure is made considerably simpler, faster, and more
precise with RPA. The data quality of the entire system is improved via automation, which
systematically eliminates the data transcription errors that existed between the core banking
THE IMPORTANCE OF AUTOMATION PROCESS & TECHNOLOGY IN BANKS 7
system and the requests for new accounts. Global banks deploying robots to extract data from
input forms and then feed it to various host applications during the account creation process are a
As a result, there is no longer a need for a labor-intensive, error-prone manual data input
process, which reduces TAT significantly while preserving operational accuracy and containing
Mortgage lending
One of the most important service areas for any financial organization is lending. The
mortgage lending process is quite procedure-driven and time-consuming, which makes it very
appropriate for RPA automation. With explicitly specified rules, RPA technology may be used to
Numerous processes that are essential to the mortgage lending process can be easily
comparisons, and quality control. As a result, loans can be authorized significantly more quickly,
RPA in mortgage lending also frees up staff from manual labor, allowing them to
concentrate on other worthwhile tasks and increase productivity (Maruti Techlabs, 2019).
Loan processing
It has traditionally been thought of as a tediously slow process to process loans. Even
though the bank has partially automated the procedure, RPA further quickens it and reduces
The contact between banks and their customers can be automated across many
touchpoints, including mobile apps, call centers, websites, online chat, etc., to offer a tailored
Banks can handle every activity with automated procedures thanks to intelligent banking
customer service (Itexus Team, 2021). For banks, automating customer care has four major
advantages including:
Automating bank help promotes digital self-service and enables clients to find solutions
to their problems without speaking to live people. Bank personnel have more time for more
complicated jobs that call for emotional intelligence and a personal touch when mundane tasks
Increased Personalization
Customers that receive individualized banking services are more engaged, which
improves traffic and conversions. As a result, the company has a stronger return on investment
The goal is to turn an ordinary consumer into a devoted one. By following up with clients
account type, creating more individualized offers, and other activities, automation can assist
service, which also helps to save lost time and customer complaints. The bots don't need breaks
as they labor nonstop on repetitive chores. Employees also feel less overworked and commit
Ease of Use
Banking may be challenging, particularly online. It's crucial that the bank offers the most
complete and user-friendly mobile experience possible because of this. Chatbots will aid in
gaining a more complete understanding of the entire service and product offering and will
automatically pass any inquiry to the proper human professional if the situation calls for it
Efficient Service
This phrase refers to problem-solving that is quick and efficient as well as cordial bank
communications. Customers do not want to be kept waiting for hours. Therefore, both the first
response time and the whole turnaround time for resolving the customer's issue are critical.
Automated banking systems provide prompt service, are courteous, and drastically cut down on
wait times. Because staff may react right away to major concerns, even complex ones are
Conclusion
Over time, there has been substantial progress in banking automation. Before digital
systems and the internet, banks built and managed their accounting and loan transaction
performing other banking tasks like internet access are all made possible by banking automation.
THE IMPORTANCE OF AUTOMATION PROCESS & TECHNOLOGY IN BANKS 10
Automation helps minimize costs by reducing the amount of time a representative must devote to
tasks that don't require their direct involvement. Employee flexibility allows them to work on
other projects for the business, which boosts output (Chhabra, 2022).
Despite the benefits, even for IT experts, automating banking can be a challenging
undertaking. With the use of technology, banks can automate their operations and increase
In order to differentiate themselves from their rivals, various financial service firms are
increasing market pressure and low borrowing rates, businesses are working hard to deliver a
terrific user experience that lives up to the expectations of their customers (Chhabra, 2022).
THE IMPORTANCE OF AUTOMATION PROCESS & TECHNOLOGY IN BANKS 11
References
Chhabra, A. (2022, May 29). Automation in Banking and Finance. Nanonets. Retrieved
https://www.trintech.com/blog/2020/10/benefits-financial-automation-software-for-
banking/
customer-support-automation-development-guide/
Maruti Techlabs. (2019, October 5). 8 Benefits of Implementing RPA in Banking and
banking-and-finance/