Financial services or Fintech is the use of technology with innovation in financial services. Fintech is changing the face of financial services and transforming the banking world as we know it. On the other hand, Robotic Process Automation (RPA) was predicted to be one of the industry’s most significant trends in 2018. Automating human activity and freeing up employees to work on more value-added things paves the way for innovation and automation like we never encountered since the industrial revolution. The mere idea of robots seemed almost like a distant dream and fantasy at one time. Being able to integrate it into our day-to-day lives to ease our work was mystifying. Yet, we have reached a place where not only automated but smart and cognitive robots are overtaking stringent processes and reducing the scope of human errors.
The use of debit and credit cards, ATMs, and Desktop automation can be cited as examples to prove that automated technologies are being used to streamline processes and improve customer experience. The technologies mentioned above are significant but have limitations in their functions. On the other hand, Robotic Process Automation can do much more in comparison, starting from controlling data, triggering responses, processing transactions to communicating with other systems.
Fintech firms are now challenging traditional financial service providers in the rapidly shifting technology landscape to adapt to the new technologies or risk losing significance. As the financial service benefits most from RPA as the industry demands high security, data quality, auditability, and error-free operations. With the new generations swiftly shifting towards digital payments, procurement of loans, and digitally investing and transfer funds, traditional finance companies have been forced to invest in RPA.
Let us explore a few ways in which technology is being used in the financial servicing industry:
Processing of claims
Processing of loans and insurance claims takes a long time and is a manual process. It is time-consuming and prone to human error, which increases the workload, and employees end up with more work. All the delays and errors lead to unsatisfied clients. An organization used to go through 26 banks and do smart searches to make sure payments were made against claims that were to be paid every fourth of the month. This entire verification process took them four business days to conclude, including errors, missed information, and unpaid claims. With automation, errors have been eliminated, and the entire process now takes around two hours.
RPA can prove to be of immense help in terms of improving customer satisfaction. Many banks and financial service providers are now using chatbots to improve customer interaction. Chatbots are available 24X7 and customers can be assisted at their own convenient time even outside regular business hours. Also, since automation reduces the number of errors, the customers’ needs can be met quicker and more accurately.
Data entry and integration
RPA can improve accounting with reduced human error and less time when it comes to data entry. Integration between portals can now happen without employees having to put in data manually. With better machine learning possibilities, the usefulness of this technology will only get better with time.
It is safe to say that RPA can do what humans cannot do at speed humans cannot achieve. It can communicate with numerous systems and get data, thereby eliminating many pain points. It can save employees who can utilize their free time in more effective work and increase the organization’s overall productivity. With the use of RPA, more work gets done without the need to employ more workers.
Fintech companies are now investing in RPA to provide customers with an easy and user-friendly interface. Traditional companies are also now bound to invest in RPA and upgrade themselves to gain an edge over their competitors. If appropriately used, RPA can help companies see a return on investment of 30%-200% in the first year itself. RPA, is thus, the future and the next step to be taken towards digitization.
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