Banks all around the world must abide by and comply with a vast number of regulations. The three main objectives of regulatory compliance, for any financial institution, are:
- The alignment of business/bank practices with applicable regulations.
- Good reporting and record-keeping for audits.
- Standardised process models.
These regulations have been put in place to protect customers, ensure ethical practices and preserve the law.
Banks and financial institutions today are under tremendous pressure to boost productivity and minimise costs, whilst remaining within the scope of the law. However, inefficient processes, a scarcity of skilled resources and ever-increasing personnel costs have pushed banks to look elsewhere to save pennies. Paving the way for Robotic Process Automation (RPA) due to the immense amount of data dealt with every day. Banks around the world have become great advocates for the adoption of RPA when trying to minimise errors and human involvement.
Several standard processes within the banking industry have benefited from automation as it allows teams to focus on engaging with the clients, growing the business and focusing more on value-adding activities, instead of the boring and repetitive work that adds no value to the business. Please see a few examples of such processes:
1. Customer Service
Banks deal with several queries ranging from bank fraud to account inquiries. It becomes difficult for customer service teams to address them within an “acceptable” amount of time. RPA helps with settling low priority queries that require little or no human involvement. This speeds up the process for the easier queries, freeing up the customer service teams to focus on the higher priority queries.
RPA also helps in reducing the time taken to verify customer details from disparate systems while also onboarding customers more efficiently. This decreased waiting period helps banks to improve relationships with their customers.
2. KYC Process
Know Your Customer (KYC) is a critical compliance process within the banking industry, which promotes effective implementation of legal, regulatory and operational measures to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system. The KYC process is a very time consuming and repetitive process for banking institutions, which is an ideal candidate for RPA. When looking at the total cost and the amount of resources involved in the process, banks realised that if they started using RPA to collect, screen and validate consumer data, it would speed up the process dramatically and reduce costs even more so. RPA helps banks to complete the necessary steps within the KYC process in a shorter period of time, with minimal errors and staff.
3. Anti-Money Laundering (AML) Screening & Investigation
Anti-money laundering (AML) refers to the laws, regulations and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income. KYC is a small part within the wider AML regulations.
RPA helps to process data at a much faster rate than current full-time employees (FTEs) can. The Digital Workers will then be able to flag any data collected that is deemed to be suspicious. From there, this data can be assessed by an FTE to see whether the transactions are to be considered fraudulent.
Robots are ready to process large quantities of information from many different sources, however even more critically; where regulatory compliance is concerned, Robots must be able to produce a clear audit trail showing exactly what has been checked and in which areas. Blue Prism’s Digital Workers and their overall platform offer enterprise-grade audit and non-repudiation, both of which are essential for KYC & AML. The platform automatically logs and records every action taken or changed, which gives financial institutions 100% visibility into their process workflows. The data collected is centrally stored in a “tamper-resistant environment”, making the usage of Blue Prism an accurately auditable and therefore trustworthy component part of tamper-free KYC & AML. Venturiq is certified by Blue Prism to implement this.
Venturiq have a number of use cases for RPA in banking available – Whether it’s KYC, onboarding or another form of automation you are looking for please reach out to one of our specialists today to discuss in more detail.