Top 10 RPA Use Cases in the Banking Industry

Top 10 RPA Use Cases in the Banking Industry

Robotic Process Automation (RPA) is becoming increasingly popular. The global robotic process automation market is expected to reach USD 6.81 billion by the end of 2026, according to a recent analysis released by Fortune Business Insights. RPA technology's market size is expected to grow dramatically, according to leading analysts.

RPA solutions are expected to reach $2.4 billion in market size by 2022, according to Gartner.

The market for robots in knowledge-work processes will reach $2.9 billion by 2021, according to Forrester's RPA trends and projections.

RPA has now become a necessary tool for most enterprises, including banks. The banking business is undergoing fast change as a result of the worldwide pandemic and economic uncertainty. Banks are coping with the COVID-19 problem.

looking for any feasible opportunity to minimise costs and increase revenue RPA is proving to be a crucial enabler of digital transformation in the banking industry.

1. Contact Center Improvement

Because most physical interactions with clients are down or limited during the COVID-19 crisis, banks are dealing with a massive influx of inbound calls at their call centres. RPA tools and chatbots can assist with a large percentage of this traffic. Routine questions about account statements and transactions, for example, can be handled by Bots, while requests that require human decision-making are routed to the necessary knowledge workers.

2.Operation of Trade Finance

RPA solutions can help banks scale up their trade finance operations and expand their market presence. the supplier chain RPA is being used by a large Indian bank to automate procedures linked to issuing, managing, and closing letters of credit, the most popular trade financing instrument. RPA Bots' automation reduces overall turnaround time by 70%, improves process visibility by 80%, and lowers operational costs by 50%. Read the entire case study here. 

1. Client Onboarding

The manual verification of various identity documents makes the customer onboarding procedure for banks extremely difficult. For such document validations, Know-Your-Customer (KYC), an important aspect of the onboarding process, necessitates significant operational effort.

According to a recent poll performed by Thomson Reuters, the cost of KYC compliance and client due diligence can be high, ranging from US$52 million to US$384 million per year (for a bank). has developed KYC solutions that integrate RPA with computer vision (CV) and sophisticated optical character recognition (OCR) to extract important data and validate the customer's identification as stated in the application form. Automation not only eliminates manual errors but also saves time and work for the employees. 

1. Money Laundering Prevention (AML)

According to a recent assessment by Booz Allen Hamilton, anti-money laundering experts spend only 10% of their time on analysis. Data gathering takes up over 75% of their time, with data entry and organising accounting for the remaining 15%.

The automation of the entire AML investigation process is one of the best examples of RPA in banking. The investigation procedure is largely manual and might take anywhere from 30 to 40 minutes depending on the intricacy and availability of information in various systems. RPA can easily automate these repetitive and rule-based operations, resulting in a 60 percent reduction in process turnaround time.

5.Closures on Bank Guarantees

This is a very particular but extremely important topic.

Many banks have a PA use case. The human transcription of data between several disconnected legacy systems and identification of bank guarantees due for closure, termination, or discharge is ideal for the bank guarantee closure procedure. Manually generated and distributed notice letters, as well as reversals and closures, are also carried out. Furthermore, each level requires many human verifications, which reduces total productivity. The entire procedure can be successfully automated with RPA Bots were successfully installed by a large Indian bank to automate the complete bank guarantee closure process, resulting in faster customer interactions and a 45 percent decrease in process handling time. Read the entire case study here.

6.Process of Bank Reconciliation

The bank reconciliation process is time-consuming and requires skilled professionals.

Find a large amount of transactional data from several banks and manually balance the final results. RPA Bots can be created to automate numerous manual tasks with rules-based automations, such as checking each payment entry against bank data and other records. The records are reconciled if the entries match. The Bots can, however, send the records for additional verification if there are any anomalies.

1. Processing of Loan Applications

For banks and financial organisations, the loan application procedure is an excellent option for automation. Documents for loan and appraisal requests are often received as bundled PDFs through email. Some of the primary manual activities include data extraction from applications, verification against different identity documents, and creditworthiness evaluation. RPA Bots with artificial intelligence (AI) capabilities can be used to automate a variety of these manual processes and collect useful data. Check out the demo video below to see how the RPA Platform is being utilised to automate the loan origination process.

Several laborious processes in the loan application process are automated using  Smart Bots with native AI and machine learning (ML) capabilities.

Bots receive emails and intelligently classify and assign them to appropriate agents using text classification and entity recognition.

Using natively embedded computer vision and human-bot work coordination capabilities, data may be extracted from loan/appraisal documents.

Predictive machine learning models are used to detect fraud tendency.

1. Report generation that is automated

RPA is being used by many banks and financial services firms to automate manual report generating operations.

able to obtain a quick return on investment (RoI). Optimizing data extraction from both internal and external systems, standardising the data aggregation process, defining templates for reporting, review, and reconciliation of reports are all part of automating the report generating process.

1. Account Closure Management

End-to-end account closure requires a number of human operations, including verifying for papers in the bank's records, sending emails to clients and branch managers, and changing system data. RPA Bots can automate all of these manual procedures, allowing knowledge workers to concentrate on more productive work.

10.Processing of Credit Card Applications

Another use case where banks have found fantastic benefits is RPA-enabled automation for credit card application processing.

Customers might receive a credit card within hours thanks to RPA. RPA Bots can easily traverse across numerous systems, validate data, run several rules-based background checks, and decide whether to approve or reject an application.

RPA is one of the primary technology enablers in the current circumstances, as many leading banks have already begun to re-strategize their operating models to harness automation-led disruption. We've worked on a variety of automation use cases in a variety of industries, including banking, ranging from customer service desk automation to employee onboarding, risk compliance management, and retail fraud detection. Many of these solutions rely on simple RPA automation, but others are more complex, requiring numerous technologies that are naturally incorporated inside the Hyper automation platform.