While there are systems to provide data, and templates to present them in a digestible format, what the banks required was accurate data with no error. RPA helps banks in preparing reports with accurate data. It gathers information from different sources, validates it, arranges it in an understandable format, and schedules it to be sent to different sources.
Accounts Payable (AP) is a monotonous process that requires digitizing invoices from the vendors using Optical Character Recognition (OCR), extracting information from all the fields in the invoice, validating it, and then processing it. RPA helps in automating this process and automatically credits the payment to the vendor’s account after reconciliation of errors and validations.
Normally, it takes 50 to 53 days to close a mortgage loan. The process took time as the application had to go through various scrutiny checks such as credit checks, employment verification, and inspection before approval. A minor error from the customer or bank’s side could slow down the process and lead to unnecessary complications and delays. With RPA, banks can now accelerate the process based on set rules and algorithms and by clearing the bottlenecks that delay the process.
Know Your Customer (KYC) is a critical compliance process in every bank. The process is so crucial that it involves at least 150 to even 1,000+ FTEs to perform checks on the customer, and according to Thomson Reuters, some banks spend at least US $384 million per year on KYC compliance. Considering the cost and resources involved in the process, banks have now started using RPA to collect customer data, screen it, and validate it. This helps the banks to complete the process in a shorter duration with minimal errors and staff.
Account Closure Process
Banks receive several requests to close the accounts on a monthly basis. Sometimes, the accounts can also be closed if the client does not furnish the proofs required for operating the account. Considering the high volume of data handled by the bank every month and the checklist they need to adhere to, the scope for human error also increases.
With RPA, banks can send automated reminders to the customers asking them to furnish the required proofs. It can also process the account closure requests in the queue based on set rules in a short duration with 100!% accuracy. RPA is programmed to cover exceptional scenarios as well such as closing an account due to failure in KYC compliance. So, this makes it easier for the bank to focus on other functions that are less monotonous and require more human intelligence.
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