Are you wondering how the best duo in financial services, Robotic Process Automation + Finance, contributes to the growth-oriented opportunities? We speculate the same; however, we did our homework and thought to share the knowledge based on our research. The digitally demanding gig economy is penetrating into the industry, making the entire scenario more challenging than ever before. The fintech market is in need of a hidden force that can bring a radical shift in the industry. Well, RPA in finance and accounting can successfully contribute to the transformation. In this blog, we will explore how and why RPA is becoming the focal point of finance and accounting and boosting the productivity of the industry. 

The on-set of challenging shift:

Robotic Process Automation is the new nomination preferred by almost 50% of financial market players. The RPA in banking and finance not only automates repetitive business tasks but also supports the increasing regulations scenario and dwindling profit margins. 

Well, the solution sounds quite promising and will soon become the future of fintech development. 

RPA implementation

What challenges can RPA implementation resolve?

  • RPA will automate and will have the capacity to work around 20 hours a day.
  • RPA bots can function faster for manual tasks like typing and transcribing texts. Additionally, these bots can’t forget or nor do they get distracted, leading to an accurate output. 
  • Robotic Process automation in accounting and finance will cost one-fifth of the amount than hiring in-house professionals. In all, it will reduce the operational cost of business.
  • A Deloitte survey says that nearly 52.8% of professionals are struggling to improve their business operations with automation. 
  • RPA implementation will give financial institutions a competitive edge with RPA bots managing human work and mitigating errors. 

Human-like automation will help financial businesses to achieve stability and become more efficient. The involved teams will have time to focus on strategic tasks and make business more scalable. 

Some market statistics of the RPA market goes like, the RPA market size globally will reach $1.89 billion by 2021. The total number of annual RPA spendings will cross $4308 million by 2022.

All of these suggest that RPA will take the industry professionals on a roller coaster ride and bring in high transaction value. I hope this clears the reason why finance and banking institutions are obsessed with RPA and how it will participate in a well-established financial process. 

To support the above-written facts, here are the names of the companies that adopted automation: UiPath and Automated Trade Matching, Blue Prism and Internal Process Automation, Automation Anywhere, NICE, Kofax, etc.

Now let us look at the RPA use cases in finance:

RPA operations in finance will let businesses observe an early success in the journey.  Where and how can they implement automation? Let’s find out in the use cases. 

Accounting automation:

A myriad of tasks are performed by the accounting team from generating invoices, preparing spreadsheets, order management, to extracting data into various formats. 

Guess what? RPA solutions can cover all of these; it can convert PDFs into SAP compatible formats, or generate an invoice or a purchase order, or processing payments.

RPA solution considers all the factors of accuracy and helps in the correctness of employees’ payrolls. It can also compare the output data with the ERP software and participate in supply procurement systems. 

Argos Labs used RPA solution and observed a reduction of 180 hours/month of invoice processing. 

Prevent money laundering:

Fraudulent activities are a common threat in financial institutions. A huge amount of money is exchanged/ transacted every second, putting the accounts at risk. Banking professionals have to assign investigators a task to keep the check on suspicious transactions. This procedure involves manual checking of data which not only occupies the professional’s time but also adds on to the billing amount.

RPA solutions will keep an eye on downloaded checks and suspicious activities. The software will download the checks at regular intervals and look for any fraudulent activity. This way, no human force will be required to solve the cases, and the involved professionals can easily look after other productive tasks.

If you have a heft budget for automation, you can also go for an AI-powered RPA solution. It will be sleeker and will provide accurate results. 

Bank account opening:

We would carry piles of data to open a bank account at a branch more often than ever. The manual data entry process needs a human effort who, if commits errors, can further lead to extra processing of documents.

However, an RPA solution automates the process, and the user only has to upload a driver’s license or photo ID. The system matches it with the government registry information and verifies the documentation.

Any missing data or required information instantly gets notified, and the same is processed further. Once done, the bank account opening procedure is completed, and the banking details are shared with the user. 

Report automation:

Reporting activities are a crucial part of banking institutions. RPA, when combined with Natural Language Processing (NLP) modules, assist in automating the reporting tasks.

It helps in generating annual reports, related regulatory reports and thereby generating a precise report for banks. 

Financial planning:

Analyzing cash flow and syncing it with the current financial trends is the need of time. Financial forecasting involves the ability to check the incoming and outgoing cash from various accounts. 

Additionally, the forecasting falls true only when it is executed as per the plan. An RPA managed solution checks the balances and matches them with the plan. This way, you can have better, faster, and accurate financial planning. 

Detailed information on Bank services:

Money lending, credit card issuance, loans, etc., are also managed by banking institutions. Each of these service provisions involves challenges related to manual data procurement. The manual processes may fall short in verifying users’ credit history, income level, risk factors, etc. Also, loan interest calculators also don’t go along in calculating the chances of getting a loan. 

But, RPA automation will smoothly allow customers to calculate their chances of acquiring a loan based on their past transactions and capacity to pay the debt. It will also calculate the bonuses of customers, rate of interest, etc.

Updating customer data:

Tell me, how often have you forgotten about the email password you have used for bank registration? The same goes for mobile numbers? This is because the bank institutions do not carry out recurring verification. Definitely, it’s not a task that should be carried out every month, but yes, it should be verified at a specific interval. 

This task again becomes manual and time-consuming. However, RPA in finance and accounting implementation will assist banks in keeping the record up to date by verifying it from the connected government database. If you struggle with verifying the phone numbers, you can use the RPA software to extract them from social media accounts.

types of RPA tools

What are the various types of RPA tools available in the market?

RPA implementation is basically adopted for high-quality and accurate business services. The way blockchain revolutionizes finance, the same is about to happen with RPA. 

You can seek help from mobile app development companies to develop human-mimicking bots, but it would be a huge investment to make. The smart bots will interact with multiple applications and be intelligent to respond to queries. However, you can also use RPA tools available in the market. For example,

Ready-made RPA solutions:

If you are running on a tight budget, you can opt for ready-made RPA solutions. You will not need to hire mobile app developers to customize it; you will get a simple automated solution. Ready-made solutions are easy to implement, and the code can be modified to suit your needs. 

Free solutions:

You can also have access to open-source, free RPA software without investing any penny. These RPA solutions are best suited for non-enterprise organizations and can be used for trial purposes. 

Three popular open-source RPA-based solutions are:

Automation Anywhere, UiPath, and Blue Prism.

Paid solutions:

Paid RPA solutions always function better than free and ready-made solutions. These solutions are custom made to satisfy every need, manage accounts, transactions and collaborate with teams.

You can use any of the below-mentioned RPA-as-a-service and try their free versions before paying them for the final thing. KOFAX, BluePrism, UiPath, Pega Robotic Automation offer paid RPA solutions. 

Ending note:

Kody Technolab aces the fintech app development genre. We would love to help you automate every operation possible in the finance industry. We understand that RPA implementation is difficult and hence would be beside you at every step of the journey. The RPA bots will dominate the finance industry within a short period of time, and if you are interested in moving with the trend and implementing RPA in finance, you can directly connect with our executives.

For a more comprehensive explanation, feel free to ring our bells.