5 Real-World RPA Use Cases in Banking Industry

The Middle East is one of the world’s fastest growing market in the banking sector and technology adoption has become an imperative there. Some of the latest initiatives in the Middle East like Data privacy regulations, Open Banking, cost optimization, and cyber-secure banking have intensified need for a faster pace of adoption of emerging technologies. While curbing the menace of fraudulent transactions is one of the top priorities, banks must also deliver better banking experience to customers for better customer satisfaction, retention, and future business growth.

10xDS is in its third year helping clients on their digitalization journey and our sectoral experience is wide and deep. But with Banking, we are way above others, and this is achieved through a committed focus on the sector. When we embarked on this journey, we realized that the challenges the industry faces are many and the impact is huge. After spending time holistically understanding the needs of the industry, we were able to leverage our state-of-the-art COEs for emerging technologies like Intelligent Automation, AI, Analytics, Cyber Security, Blockchain and others to streamline processes. Today after serving several Middle East and Indian Banks, we can confidently say that we have solutions for some of the pressing problems, be it Backoffice operations, payments, sales or regulatory compliance. Now, most Banks are embracing this new wave of digital transformation, realizing the substantial benefits these technologies present.

How to identify ideal process candidates for automation?

If you are struggling to identify the best fit candidates for process automation, we are here to help you with pointers.  Look for processes that are manual, labour intensive and spread across multiple unconnected systems. If there is a significant number of FTEs utilized for the process where tasks are deterministic, repetitive and highly frequent, they are the perfect candidates for RPA. You may also try to prioritize on the areas where processes employing large internal teams, roadmap items that consistently get ‘dropped off the list’ and wherever a service level transformation (converting weekly or daily SLAs to hourly or less) is necessary. The real benefit of RPA is when you are able to move from just automating individual processes to building an RPA Centre of Excellence (CoE) for effective RPA Deployment and Management within your bank.

Here are some of the ideal process candidates for Robotic Process Automation (RPA) as identified by our expert Process Consultants:

• Regulatory Reporting
• Marketing
• Sales & Distribution
• Bank Servicing
• Payment Operations
• Lending Operations
• Back-Office Operations
• Enterprise Support

Our Process Consultants are equipped to perform ‘as-is’ ‘to-be’, re-engineering of processes and gauging ‘automatability’. Combining the Analytics and AI capabilities with the RPA and deep banking domain expertise we have successfully implemented several automation projects.

5 Real World 10xDS Use Cases for RPA in Banking

Here’s is a glimpse of some of the solutions we have delivered in the Banking industry. You will be able to easily relate with these process automations that are generic across the industry.

1. eKYC process

ICR (Intelligent Character Recognition) solution enables handwritten multipurpose KYC forms to electronic forms in appropriate fields of KYC portals. Verification and edits if any can be enabled with the help of a Customer Service advisor. These data are further populated in all other relevant systems

2. Report generation and monitoring

Limit utilization report, Fund dilution report are some examples where BOT will take care of generating templates, fathering raw data, generating report, formatting and emailing them to distribution lists or uploading to specified websites or folders. Exception check in daily reports are another aspect which is rule-based and BOT can easily take over those tasks.

3. Blocking unblocking

As per the Central Banks norm, BOTs can download the list of users for blocking and unblocking, execute the action and update the status to close the loop. This is a highly critical process with strict SLA for compliance and BOT can do it with more than 50% of reduction in average handling time.

4. Deal process in investment banking

BOTs easily manage to create deal tickets and update transactions in various systems so that cash balance is reported correctly upon finalization of a deal. BOTs also update security price and exchange rates in various systems on a periodic basis. Average handling time is reduced to more than 65% and the process is made touchless with the robotized solution.

5. Interbank reconciliation

Interbank payment process with strict SLA adherence was automated with robots where they download files from various applications and execute transactions in the Core Banking System (CBS). All possible exceptions were defined to enable 100% exception handling by the BOT and discrepancies are flagged to a designated team for validation before executing them.

Conclusion

The above use cases showed a significant increase in productivity, cost reduction and greater ROI. These automations have helped enhance performance, handling a large volume of data with a significant reduction in AHT. The bots perform tasks at a much better speed 24/7/365 without downtime. With the reduced risk of errors and the ability to diligently follow the regulatory norms, compliance, regulatory violations, and fraudulent transactions are reduced. The automated solutions are highly scalable and adaptable, able to handle the inevitable increases in data. Moreover, by automating the highly time consuming and repetitive tasks, employees can devote their quality time for more creative and innovative tasks.

Want to gain further insights into our services and solutions or if you are looking to jumpstart your Digital Transformation journey, talk to our experts!