Robotic Process Automation (RPA) has made inroads to multiple industries across the world. RPA has been playing a key role in freeing people from day-to-day repetitive tasks and helping them focus on more important things to their business. They can thus utilize their time more productively.
You can regard RPA as a new digital workforce that helps businesses improve productivity and efficiency. It can carry out many tasks performed by humans.
RPA can handle repetitive and time-consuming tasks, like updating client profiles, reconciling financial statements or streamlining purchase orders, etc.
RPA has become almost mandatory to manage accounts when it comes to the finance sector, computerizing the redundant work without necessitating any complex programming.
Why Should Finance Companies Use RPA?
Many reasons justify the usage of RPA in the finance sector. First, it is due to the large volume of transactions that the companies carry out regularly. And most of them are repetitive.
RPA gives finance companies the efficiency to perform tier day-to-day transactions.
Here are some of the reasons why finance companies should use RPA:
Cost Reduction
When finance companies use RPA, the back office work, including data entry or process claiming, becomes less costly. It has been observed that usage of RPA cuts operational costs of finance companies by 25-50 percent. Your investment in RPA will derive significant results as it will also help you modernize your IT infrastructure apart from working with the existing systems, allowing you to connect your old systems to make them work.
Streamline Card Activation
Finance companies need to activate cards that involve a slew of operations, like maintaining data consistency, compliance rules checking, manual data entry, inter-department coordination, etc. Unfortunately, such tasks are redundant and boring, and susceptible to human errors. With automation, finance companies can streamline their card activation process. Before RPA came into existence, the workforce had to do these tasks manually under the pressure of customers, who wanted quick results.
Makes Treasury and Bank Systems Consistent
Banks need to feed their balances into treasury systems. But, the constraint is that they need to find a language that both systems understand. The advantage of using RPA in the finance sector is that it enables easy understanding of the data by the treasury systems so that data transfer can easily take place to generate reports.
RPA can circulate treasury reports among employees and also coordinate the balances and employees.
Increased Productivity
As RPA works round-the-clock, finance companies can function any time of the day, and it also means that the workday does not end for them. Therefore, RPA can perform round the clock and can complete assigned tasks quickly. It is needless to say that the volume of work RPA can finish in a given time is higher than human capabilities. Meaning there is more output with RPA, increasing productivity.
Quick Account Opening
Banks need to verify customer details before opening an account. Information, such as past credit scores, identity, conformity with compliance rules, etc., is necessary for the banks to be safe.RPA helps to verify such details and facilitates quick account opening. The account will get created automatically through a software robot. And the customer can receive the account details quickly.
Better Financial Advice
RPA tools can act as intelligent financial advisors to advise people on the best financial assets to invest in. Usage of the tools eliminates humans’ need as the robots are better at tracking investment values and giving advice to investors. As a result, RPA can better assess an investment portfolio of investors and minimize risks.
Fraud Detection
Detecting frauds is a difficult task for financial institutions. But RPA makes things easier for financial companies to detect frauds. For example, RPA can use loss origination systems that use predictive analysis to help financial companies analyze the risk associated with a particular loan transaction.
Conclusion
Given the rising complexities in the financial industry, companies cannot undermine the need to implement RPA, which helps them increase their productivity and efficiency. RPA helps financial companies in many ways in giving accurate outputs without any errors and human effort. Moreover, RPA does not pose challenges in usage because all that is needed is a software installation and a quick setup. Besides, there is not even the need to take help from the IT department.
