The emerging needs of CTOs etc. are gradually directing the FinTech firms towards acceptance of diverse technologies. One such technology is RPA, which takes care of routine work. Let us look at the different ways how various financial institutions utilize this next-gen technology.
Banks are at the core of a nation’s economy. Therefore, they have to be compliant with several rules and regulations. RPA ensures this by ensuring 24×7 availability and increased productivity. It also promises accurate handling of various processes. To illustrate, here are certain areas that are seeing multifold benefits of using RPA.
- RPA for KYC: Every person who desires to open a new bank account, must provide certain personal details. It is vital that the bank then verifies this data provided to understand its customer better. This can prove to be a time-consuming and expensive process, considering the enormous amount of people who open bank accounts throughout the financial year. With RPA in place, it becomes possible to get through the KYC (know your client) process rapidly and accurately.
- RPA for Processing Payments: Another area where RPA comes in quite handy since the automation software used in the process can dig out essential information related to each account holder from the vastest of databases, and this makes the entire verification process simple and easy. It does equally good job when customers request for closure of bank accounts and perusal of credit card applications.
- RPA for updating General Ledger: Another arena that RPA handles with deft expertise is the update of the general ledger. This is that all-important storehouse of information, which goes into making financial statements. The information includes assets and liabilities, revenue, credits, debits etc. Every single detail must be accurate and up-to-date, for these statements are used for several purposes. The details even reach the media, the public and various stakeholders. There are multiple legacy systems that come into play for keeping the ledger updated. They refer to old computer systems, methodologies, applications or technologies. A bank can find it confusing to garner data from so many sources. RPA can not only handle this aspect comfortably, but also present garnered data in the currently acceptable format. This enables a bank’s reputation to remain intact! It also permits accurate and detailed reports about every bank to reach the concerned stakeholders.
Do you think this is all that automation can do? Well, certainly not! Since recording and storage of every transaction is automatic in nature, it becomes easy to recognize fraudsters and their tricks. RPA flags transactions that do not seem genuine. Sometimes, it even blocks an account. The concerned bank conducts the necessary checks and takes further action. Finally, by embedding artificial intelligence, automation tools can provide excellent customer service.
The insurance industry banks upon RPA in a big way! How? Let’s see.
- RPA for Claim Processing: Every insurance company needs to collect a good quantity of data for processing a claim, and this data needs to be sourced from diverse sources. With RPA in place, the firms can easily extract information about the claimant, tackles complex errors, verifies data, etc.
- RPA for Underwriting: Another important term in Insurance industry – Underwriting, which refers to the action of evaluating the exposures and risks of the client, utilizes the power of data. Once again, it becomes imperative to collect data from both, internal and external sources. RPA does this quite rapidly. Therefore, the underwriter saves time, and is able to concentrate on analyzing the reports that the automation tools provide.
- RPA for operational efficiency: Every insurance company desires to maintain operational efficiency. However, paper-intensive processing makes recognizing areas that could do with improvement very difficult. Should automation take over, keeping track of various processes will prove easy. In turn, the company is able to measure its own performance and rectify its ‘faults’. It is able to respond to customers’ requests well and in quicker time than usual. Certainly, ‘happy customers’ is what most of the businesses focus on as that ultimately impacts the sales graph.
Insurance firms are excited to handover some of their mundane tasks, such as form registration, cancellation of policies, accounting, ensuring of regulatory compliance, etc., to RPA. It helps that RPA can integrate with diverse legacy applications. The technology takes over the arena of customer support too.
Authored by Admin