Loan processing is one of the most crucial tasks of the banking and financial services industries and is a completely process-oriented and mission-critical prerogative for financial institutions. The banking and financial sector is becoming highly competitive and is gradually evolving with time and technology, to fulfil exceptional world-class customer requirements, such as “Faster Payments” services.
In this industry, the number of repetitive tasks needed to actualise customer expectations increases the chances of human errors and this is where automation comes into its own, in order to minimize those errors. Increasing efficiency, boosting productivity, upskilling resources, and streamlining the end-to-end lending process were some of the needs that gave way to the adoption of Robotic Process Automation (RPA) in retail finance.
Banking and Finance With RPA
A report by KPMG states that around 75% of work in enterprises will be performed by RPA in the next 15 years, expanding the overall capacity or organisations, boosting productivity and revenues, and giving the workforce an opportunity to focus on higher-value tasks. What makes it more suitable for banking is its low-code, (or no code) processing, it doesn’t require any extra infrastructure. It requires robust employee training, and once it is implemented properly, it will:
- Enhance customer experience by processing faster loans
- Increase work efficiency
- Minimize human errors in mundane tasks
Loan Processing and Mortgage Lending
Loan Processing has been considered a tedious and slow procedure, but, over time, many banks have automated this task. RPA has taken this further to a certain extent, by eliminating manual work.
Loan initiation, documenting, financial comparisons, and quality checks are some of the crucial tasks in the mortgage lending process, which can be now handled by RPA. Due to this, the overall process of money lending, loan approving, and processing can be accelerated.
Apart from back-office automation in banking, RPA has several other benefits:
- Electronic Signatures and Data Saving
Electronic signatures will reduce mailing and paper-based task execution costs, also saving time. It will make the process safe and electronic data saving secures information in an organised fashion. Thus, leading to data loss prevention.
- Enhancing Visibility in the Process
When data is organised and gathered with an electronic data management system, visibility throughout the lending process increases. Thus, giving satisfaction to the customers and making the process reliable.
- Higher Data Accuracy and Fraud Detection
Since data is collected throughout the time when retail finance tasks and processes are executed, the chance of errors is reduced with RPA, as there will be no human intervention and accuracy will be at its best. With automation, the chance of fraud will be reduced as everything will be checked and monitored at every stage of the process.
Many banks have already implemented RPA and are taking advantage of the multiple benefits it has to offer. It works with the existing infrastructure, software and platform assets and doesn’t require any large scale transformation, which actualises the opportunity to automate, test and put into production one process or task automation at a time. This reduces risks of IT project failure.
With in-depth knowledge and guidance, you can perform the RPA implementation process effectively. Once it is concluded, you can also work with next-generation tools such as AI, CPA (Cognitive Process Automation), and much more, in order to automate tasks and processes involving unstructured, as well as structured data. It is always imperative to work with up-to-date tools and technologies in every industry.