Digital Process Automation in Banking: Automating the Routine

Routine data entry shouldn’t be dangerous and yet, a single data entry error, depending on the circumstance, can result in inaccurate financial reporting, billing errors, and disgruntled customers. The last of which can be catastrophic to financial institutions, which rely entirely on their reputation.

Fortunately, manual data processing can be made obsolete by digital process automation tools and software. Specifically, robotic process automation (RPA) tools are designed to mimic human actions on the computer. Meaning, that they can handle repetitive and rules-based tasks such as data entry, transaction processing, and account reconciliation.

These tools can directly lower costs for a bank by minimizing errors and speeding up processes. In turn, the human resources that no longer have to be focused on these mundane tasks can be put to better use building and fostering relationships with customers.

The headline here is that digital process automation can lower costs for you significantly but first, you have to understand it.

Digital process automation (DPA) in banking refers to the use of different technologies to automate the processes of a bank or financial institution. The tasks that can be automated through DPA include customer onboarding, account maintenance, and transaction processing.

By enhancing efficiency and reducing manual errors, DPA tools aim to reduce costs. The alternative to using these platforms and tools is to build your own in-house solution for implementing digital process automation.

While an in-house solution will always grant you a high degree of control and customization, there are a couple of glaring issues with it. Those issues are one of time and cost. Not only would an in-house solution require you to hire skilled developers and project managers but the time required to design, develop, and implement a system would be extensive.

Conversely, DPA tools offer out-of-the-box solutions that can be implemented and put to work in a fraction of the time and cost. Another key factor to note is that many DPA tools are modular and offer a degree of customization. 

Additionally, machine learning and artificial intelligence capabilities are increasingly being incorporated into these tools, which is only helping them further increase the efficiency they can bring to your organization.

The strategic implementation of DPA tools and processes increases the efficiency of any financial institution through the automation of routine tasks (data entry, document processing, and transaction handling). 

A bank can achieve faster and more accurate processing by reducing the time and labor spent on these routine tasks. Aside from automating the routine, DPA tools can optimize the workflow of your employees by ensuring that tasks move seamlessly from one stage to another, without unnecessary delays.

Perhaps one of the most effective features of DPA tools is that by design, they ensure regulatory compliance. Through the use of automated checks and validations, you are assured that processes are adhering to industry standards and regulations. This often time-consuming part of your day is now fully automated.

However, DPA tools and software don’t just increase the efficiency of team members, these tools are highly scalable.

Digital process automation enables continuous operations without the need for human intervention. Automated processes will be running around the clock, ensuring that important tasks are handled in a timely manner.

Of course, as has already been discussed, this frees up employee time during work hours but these automated processes are much more consistent as well in regard to performance and end result. Predictable outcomes directly correlate to enhanced resource planning.

Automated systems and processes can easily scale up or down to satisfy transaction volumes or process requirements, adding a responsive edge to your organization.

Digital process automation and the tools that specialize in this field often result in increased customer satisfaction. As mentioned earlier, automated systems add a responsive edge to your organization. A responsive organization is one that can quickly move to satisfy the needs of its customers.

Additionally, DPA tools and systems can proactively identify and address issues before they can have an impact on customers. That’s a powerful feature that grows the trust that customers have in your institution.

Recall that all of these benefits are available around the clock, so it’s only natural that customers would rather place their money in the hands of an organization that can:

Easily scale to fit their needs.

Works around the clock to proactively deal with issues.

Automatically adheres to government regulations designed to protect them. 

Digital process automation is the only way that banks and financial institutions will be able to keep up with the growing needs of the customer. These tools and processes are not only cost-effective and scalable but also ready-made to be implemented in your organization.

Thanks to the modular nature of many DPA tools, banks will still be able to customize processes as they see fit.