Financial institutions are facing an influx of customer and finance data. Several banks are already advocating using automation processes to improve performance and minimize errors and human effort across the world. The financial institutions have to keep evolving continually to meet customer expectations. Automation plays a key role when it comes to improving the services of a financial institution. At the same time, they must also keep an upper cap on operational costs incurred while adopting automation solutions. The scarcity of skilled professionals and the willingness to contain the expenses laid a perfect platform for RPA finance and accounting automation to grow and become a part of the significant fintech players.
The Virtual Workforce
RPA couples artificial intelligence (AI) with automation to deploy the custom applications for financial institutions. An application using RPA ensures that customer interaction is as smooth as possible, leveraging strong cognition abilities from AI. RPA deploys software robots to eliminate any inefficiencies which might cause errors in processing information. It thus helps build a virtual workforce that gets better with time without human intervention.
The last decade saw financial applications improve dramatically, but simply improving the UI does not ensure that the data processing improves too. Even the most straightforward financial process involves dealing with labor-intensive, high volume sub-tasks. RPA helps to enhance the quality and speed with which these tasks happen meanwhile the employees can attend to more value-adding processes. The time-to-market reduces from days to hours and minutes and the customer satisfaction increases substantially. The fun fact is that you can onboard these software robots at a minimal cost because the underlying IT structure remains the same.
How are Financial Institutions using RPA?
Financial institutions typically rely on RPA to perform some tasks based on some business rules using structured data. Simultaneously, RPA can be used beyond this to assist in more tasks providing more outstanding value-added capabilities. When RPA becomes a part of your IT infrastructure, greater transparency dawns upon your business eventually which draws more number of customers to you.
Given below is a list of various services being automated in multiple financial institutions globally:
Accounts Payable (AP) Automation and Accounts Receivable (AR) Automation:
A healthy cash flow and a great team are essential to drive a successful business. The thought sometimes takes a backseat in fintech businesses when accountants and finance teams invest a great deal of time to process vast volumes of data. Managing AP and AR tasks manually can prove to be a mammoth task, ultimately draining the time and energy of your great team. Our AP and AR automation solutions can help you automate these tasks so that your team can take care of a more cognition intensive task. The fintech players who have already adopted this solution claim that the errors in managing these tasks have gone down significantly. The advantages are as follows:
Around 40% of the businesses know that their business invoices have errors or missing details. The legal liability that comes with this risk is immense and can negatively impact the customers. An automated AP and AR system makes it easy to generate more invoices in a given amount of time. Moreover, multiple teams feeding data to the same invoice have to follow the same process, and thus errors get minimized. Each step of invoice generation is tracked, and the history can be viewed at your disposal.
Streamlined Processes and Improved Efficiencies
AP and AR automation leads to better collaboration as different teams can access the same files in real-time simultaneously, making their work coherent and reducing the number of cross-checks that need to be done. The more thorough processes carried on by humans are always slower, and automation speeds up greatly. The transparency improves, too, as the AP and AR managers can access each invoice at any stage. Thus, RPA reduces errors and increases transparency.
With digitization increasing and more banks digitally transforming themselves, it only led to an increase in fraud cases. RPA uses rule-based processing to flag the potential account that can commit fraud so that your business can scrutinize that before the fraud is committed.
Preparation of General Ledger:
The preparation of a general ledger involves collecting information from various systems and copying it to create a general ledger. This process is extremely error-prone in the face of it. Thus, RPA can help automate this process and gather the necessary fields from various software.
Account Closure Process:
Each month a bank has an enormous number of account closures due to the lack of coordination from the customers. As a result these accounts eat unnecessary server space. With RPA, all of these accounts can be tracked and the necessary documents can be requested from the customers.
Our RPA Implementation Approach
Fintech players around the world adopted our RPA driven solutions. We thus outlined some steps to help weave a custom solution for your business:
Assess the business case:
Analyze all the business processes and shortlist those who need to be automated using RPA. We don’t implement the solution without analyzing the impact of introducing RPA into your business from our experience with similar firms. We also conduct a Proof of Concept (POC) analysis to see the performance, cost, and other metrics.
Planning the implementation strategy:
We develop a strategy to execute the RPA solution for your business and identify the key people in your team who can help us with the process. Our team of professionals draft an execution plan carefully identifying the third-party tools, the security parameters, and the post-deployment capabilities. All of this helps us bring down the cost and time consumed by your processes at the moment.
Businesses across the industries are already adopting RPA to achieve improved performance and reduce their costs significantly. The primary aim of RPA is to transform the human resources into a virtual workforce so that the repetitive tasks become more efficient and less error-prone. The power of cognition helps RPA gain a deeper understanding of the business processes and do more than simple rule-based decision making. The inability of a business to deal with the enormous amount of data can be reduced using RPA.