A Full Guide to the Use of RPA in Fintech in 2024

 

In the banking business, human error is more likely to happen when data is processed by hand, especially when it comes to numbers. Unexpectedly, these mistakes could cause more than 25,000 hours of pointless work to be redone, which would cost more than $878,000 a year. It makes sense for financial companies to want to stop this trend and lower their risk of mistakes being made by people. Thank goodness, RPA in Fintech looks like it could help with this problem.

When used in the banking sector, robotic process automation (RPA) makes processes faster, more accurate, and more efficient. This technology is improving very quickly and can handle data better than people can while saving a huge amount of money.

RPA has been used by financial institutions for a long time for accounting and business tasks. A recent Gartner study found that about 80% of financial institutions have either already implemented robotic process automation or plan to do so in the near future. If you use RPA in finance and accounting, "hyper-automation" won't seem like a stretch because it can do up to 30 times as much work as a person.

The technology has grown from automating simple one-off tasks to fully automated tasks like data analysis, predicting, and reporting thanks to how it works with other technologies. The global RPA market is expected to be worth $2,322.9 million in 2022, according to Grand View Research. It will grow at a rate of 39.9% per year from 2023 to 2030.

What kinds of RPA tasks are used most often in the banking field?

There are a number of ways that RPA can be used in the financial services business to free up people to do more important work. Here are some useful RPA apps for finance and accounting that are well worth your time and money.

Processing of POs

Fintech companies often deal with large amounts of cash coming in and going out. Writing purchase orders by hand for many clients and sending them to be approved is a lot of work that can go wrong.

RPA processing that same thing with AI will get rid of all the chance of mistake and gather the data intelligently. Once the automated system is set up, an automatic review matrix can be made and sent for approval without any help from a person. One of the best things about RPA for handling purchase orders (POs) in finance and accounting is how easy, fast, effective, and cost-effective it is.

Processing Bills

Also, processing bills is time-consuming and repetitive, especially if they come in different formats or are made in different ways. Because financial firms care about their customers, it can be hard for them to send accurate bills on time in the forms that their clients ask for.

Also, because of the approval grid and process, fixing the formats and data might require a lot of extra work. This time-consuming and repeated task can be quickly taken over by automation, which can also make sure that the bills are sent to the right authority for approval.

RPA and automated invoicing tools make it possible for accounts payable and receivable to be completely automated in the financial field. The maker and checking process may not be needed as much since the system can match the bills with the right POs.

Bringing the accounts together

Making sure that balance comparisons are right is an important business task that can take the account team a lot of time. When going back and forth between references and logging into different systems, it's important to keep a close eye on things to make sure no mistakes were made and the data was compared properly. 

It's easier to understand how an organization with many departments and branch businesses keeps its books when it uses a variety of structures and processes. It might not be possible to put them all into the same processing file, depending on what the customer wants and what the business needs. The central team has a hard time keeping the books balanced across all of the departments and partner companies. The process is time-consuming, tricky, and needs to be done over and over again. 

This is an area where RPA could help the core team. In fact, this is the best thing about RPA for accounting. RPA bots make the work faster and more consistent by checking and matching the data at every step. They don't need much help from people to add the missing parts. Only when misalignments show up in the data does a person need to step in.

The trip and the costs

The accounts team spends a lot of time on things like trip requests, checking the category of expenses, getting the necessary approvals, getting the necessary supporting documents, etc., which could slow down the processing of the requests. 

But since RPA was added to corporate finance, it's been faster and easier to make reports on spending and make sure the data is correct according to the company's rules. A financial management system can also make sure that reimbursements are processed on time. Automated reports can also be used to let the right people and departments know about policy violations and strange data.

Estimates for tax

When you use RPA bots to do repeated tasks like building tax bases, making reports, and gathering data for tax calculations, you can avoid making mistakes and doing the same thing twice. To keep data handling and reconciliation from going wrong, numbers and figures must be correct to the last decimal place. 

Tax preparation software is used by most businesses, but there is still a lot of actual work that needs to be done. Most of this work can be done by RPA bots, which saves time and money, improves accuracy, and meets regulatory standards.

Reporting on accounting

You can plan ahead and find problems before they get too bad if you keep daily records of your business's transactions, profit, and loss. You might not lose money if you take charge of and fix these problems before they happen. The changes can be made to make the current business practices and processes better and correct them.

Financial institutions, like banks, are required to give detailed reports that explain how they work and include statistics and data-driven trends. It will take a long time and be wrong to extract info by hand. Robotic process automation in accounting and finance, on the other hand, makes it easier to get data from many sources and in different forms. The gathering, sharing, and study of this data leads to better planning and forecasting.

Making predictions and plans for budgets

Two of the best ways to use RPA in finance are for forecasting and planning. The variance reports will be made by correctly extracting features from many reports and systems using RPA bots. This will give users a number of different ways to look at and analyze data. Current and past data can be used to make comparisons and spot trends that can help you plan and forecast your business well.

Fintech: Know Your Customer (KYC) with RPA

Every customer in the BFSI industry has to go through KYC, which is an important and time-consuming process. According to a study by Infosys, banks spend about $52 million a year on KYC compliance. For some institutions, that number goes up to almost $384 million. In addition to the huge costs, compliance departments in the financial industry have grown, with teams now consisting of 150 to more than 1,000 full-time equivalents (FTEs).

Finance may be able to save time and money by cutting down on costly mistakes if they automate the KYC process with RPA. So, RPA will help speed up the process of adding new clients and make the overall customer experience better in financial KYC services.

payment Management: 

One of the most important things that every business does is payment. Handling things quickly and correctly makes workers happier, which in turn makes customers committed and the business successful. 

There are financial institutions in many parts of the world, so keeping track of production, attendance, and tax rules for each area takes a lot of time and work. This kind of data gathering and computation is prone to mistakes, which could make workers unhappy. 

Because it simplifies the whole process, RPA lets you breathe easier. When calculations are done correctly and on time, workers are happy. RPA bots can do the hard work of checking timesheets, figuring out deductions and taxes, paying extra, and other tasks without making mistakes or taking too long. Additionally, bots can do work that would normally take hours in just a few minutes without getting tired.

How RPA is Used in Fintech in the Real World

Robotic process automation (RPA) has become very popular in the Fintech business because it can automate boring and repetitive tasks. This has cut down on mistakes made by people and made operations run more smoothly. Because of this, the BFSI sector has been seen to accept RPA innovations with open arms over the last few years. Here are some real-life examples of RPA in financial services:

Bank Key 

One of the best commercial banks, Keybank, was one of the first to use RPA to increase output in a very useful way. Accounts receivable have been computerized, so making purchase orders and bills doesn't have to be done by hand anymore in many cases. Accounts receivable have been automated, so even though the bank's main job is to make payments, the whole process is smooth and error-free.

From Radius Financial Group

To get a home loan, you need to show a lot of paperwork and proof. The mortgage agent spends too much time getting the necessary papers from the mortgage business and the customer. One mistake by the customer or a bank employee could slow down the whole process even more.

RPA execution takes care of the hard work of finding facts in many data sources and making sure they are correct. This cuts the time needed for processing by 80%. With RPA, Radius Financial Group is able to keep up with the pace of work. Even during the pandemic, the business might still be able to make money and get things done.

The Societe Generale Bank in Brazil

Brazil's Societe Generale Bank has been a leader in the financial services industry by using robotic process automation to speed up time-consuming, routine tasks. Even though the financial industry uses a huge and complex amount of data, employees benefit from regular automatic reports made by RPA bots. These reports help them learn more and give better customer service. The business model has changed a lot because of the good value added, which makes the customer experience better.

Zurich Health Care

Because Zurich Insurance did business all over the world, it had to deal with the main issue of following rules that were specific to each area. By using RPA, they could tell the difference between standard and generic rules and save a lot of time. There might be enough time for the insurers to talk about more complicated steps. They were shocked by the outcome because they were able to cut working time and costs by about 50%.

Using the power of AI and machine learning to automate the financial sector

AI and machine learning can be used by automation tools to connect to internal systems like ERP and CRM. By working with other internal systems, reviewing data, and automating customer service responses, this integration speeds up work.

Because of this, a more streamlined and efficient staff can focus on making customer service and the whole experience better for customers. FinTech companies can run more easily with the help of AI and ML in robotic process automation.

Users can make better choices and have them carried out more accurately when they can get detailed reports, spot trends, look at both old and new data, and get important insights.

When AI and ML are added to RPA, it often makes it more useful in the financial services business. This leads to more work getting done, fewer mistakes, better experiences for clients, and decisions based on data.

The Good Things About RPA in Fintech 

BBFSI companies need to use AI and machine learning to speed up their processes and avoid mistakes caused by doing the same things over and over again. It will also cut down on organizational waste that leads to bad customer service. To sum up, robotic process automation has changed the following things about financial institutions:

• Customers can get better experiences when AI and Ml-enabled RPA tell them about new financial goods and services.

• Using RPA bot data and reports, businesses can look at how customers behave, which helps long-term growth.

• Real-time data analysis is made easier by RPA bots, which also make the team more productive by automating boring, repeated tasks.

• In banks and finance, RPA will also cut down on fraud and let people know about possible thefts before they happen.

• Finally, robotic process automation in finance makes sure that all the data is correct throughout the whole process. 

conclusion

Appic Softwares is one of the fastest-growing international Fintech App Development Company. It is known for offering excellent robotic process automation (RPA) solutions to the financial sector. With the help of an elite group of over a thousand technology experts, we offer the best RPA solutions for the financial industry, which can automate the operations of your Fintech company without any problems. From ideation to delivery, our staff is there for you every step of the way and is dedicated to coming up with creative solutions that go above and beyond what you expect.

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