Robotic Process Automation (RPA) has the opportunity to take over many of the finance industry's low-complexity, high-volume tasks and processes. With Intelligent Process Automation (IPA) technologies, businesses will see quick improvements in productivity and efficiency.
In time, all of these tasks may be completed using RPA technology—reducing repetitive workloads to an average of one hour per day. Freeing up human workers allows them to focus on higher-level activities that require more complex thinking skills and creativity. This translates to business growth, happier employees, and satisfied customers.
It is clear that RPA can significantly impact the finance industry, quickly paying for itself in higher profits and a reduction in human error.
Regulated industries such as FinTech (financial technology) are facing many challenges when it comes to documentation requirements. For those unfamiliar with what these guidelines might be, standards like AML and KYC require strict record-keeping, which is done by humans that complete the processing of paperwork.
AML - Anti Money Laundering
AML rules help detect and report suspicious activity including the predicate offenses to money laundering and terrorist financings, such as securities fraud and market manipulation.
KYC - Know Your Customer
Standards are designed to protect financial institutions against fraud, corruption, money laundering, and terrorist financing. KYC involves several steps to: establish customer identity; risk profiles and assess money laundering risks associated with customers.
Many of these labor-intensive tasks can now be improved and sped up with the help of RPA financial services solutions. The back-office work that has traditionally been done by human hands includes:
The financial industry has strict compliance standards, which can be automated by RPA solutions. RPA solutions not only allow for these tasks to be done efficiently it also improves the accuracy because it reduces the risk of human error.
RPA offers the potential for significant cost savings for Financial Compliance firms through improvements in operational efficiency, accuracy, and compliance risk reduction. It should be considered a tool for employees to do tasks and access data they need more efficiently and accurately. This provides better service to clients and improves business operations.
Once the credit card application process begins, it has to go through an intricate and time-consuming process to be processed. RPA can also handle this part of the process as well. Credit card applications have to be submitted, and then they are either approved or denied. If approved, more paperwork is required before a credit card can be issued. RPA can handle all of these details so that a human does not need to keep track of every single detail.
One-time event processing may be used for exceptions to a transaction. An event could be for something that must be reviewed through the reporting system. These issues could be an incident that needs to be reported for fraud analysis, for example.
The purpose of exception processing is to convert accounting data into useful management information. RPA can be integrated into the business processes of any company and be tasked with a variety of intelligent, data-rich tasks. It can focus on repetitive tasks that are highly expensive and tedious for human beings, such as those associated with exception processing.
Throughout the business, there will be issues that occur that need to be highlighted but not necessarily shown on the main reporting system. This is where RPA financial services solutions can come into play and assist with problem-solving.
The system will identify that something is wrong with the transaction, will let the user know to review the incident, and then correct it. Instead of having to go through months of reports, this all happens in a matter of seconds or minutes.
One of the best parts of modern financial technology (fintech) is the integration of predictive analytics and manual methods. Forecasts from RPA can be used to capture unusual behavior or activity within an account, including novel spending patterns or unusual customer contract renewals.
Using this new technology, critical accounting tasks can then be performed automatically by an automated junior partner, reducing manual processes and increasing accuracy in the reporting process.
Account reconciliations with RPA can improve business outcomes by utilizing forethought rather than a reaction to enhance the customer experience, protect shrinking profit margins, reduce human error, and detect whether there are problems.
It is common for organizations in the financial reporting space to use automated tools to handle exceptions. This should not be a surprise. Exceptions can reveal errors within the organization and indicate where improvements are needed.
RPA (real-time ask and answer) technology has existed in various forms for many years. However, the application of this technology to financial intermediaries has only recently become feasible, although rapidly advancing RPA technology can already be found in a number of market segments. FinTech companies are beginning to deploy RPA solutions across a range of industries in order to enable speedier and more accurate customer service responses as well as to lower costs associated with operational tasks such as data processing.
OZ digital consulting, a leader in IPA technologies, can help you move your business forward by providing the right RPA and Artificial Intelligence solutions for your business, eliminating risk, and simplifying processes for your team. Schedule a call to find out more.
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