Digital Transformation in BFSI – Understanding the Role of Business Process Automation
In the new age of digital transformation, automation has become the cornerstone of success. Whether it’s automating customer service through self-serve channels or automating backend processes through robotic process automation (RPA), the use and role of this technology is only going to expand.
When it comes to Banking, Financial Services, and Insurance (BFSI) operations, automation has led to brilliant breakthroughs like speedy digital onboarding, automated workflows, near real-time processing, and maximized throughput. While faster financial tasks and operations seem to be the primary reasons to leverage RPA, enhanced efficiency, improved customer satisfaction, and competitive positioning are other bigger-picture advantages for businesses that have adopted this simple and sophisticated technology.
While Business Process Automation (BPA) may have been a key advantage for the market players a decade back, it has now become the substructure of business transformation.
Data Processing in Real-Time
The traditional way that financial organizations operate has become obsolete. This is the all-digital age where data is indispensable. Tons of useful data – from customer profile and onboarding data to browsing and payment data – pouring in from both online and offline channels 24x7 not only needs to be recorded but also processed in real time. This is made possible by integrating RPA with data extraction tools to collect data from various sources, organize it, and then analyze it without any manual labor.
For example, a real-time data processing model in BFSI can take care of tasks like recording customer information, maintaining payment records, handling reconciliations, managing credit risk assessments, preventing and detecting frauds, and offering digital recommendations to customers. This can be a huge help to banks, insurers, and other financial institutions, which can then focus on driving exponential growth while saving costs.
Accelerating BFSI Customer Onboarding with Accuracy
Customer onboarding is one of the significant use cases of RPA. The Know Your Customer (KYC) compliance process during customer onboarding involves complex tasks like verifying customer identity, biometrics, addresses, tons of documents, and more. And by automating all these tasks, BFSI businesses reap more than a few benefits. For example, organizations do not need executives to handle the paperwork-intensive task of verifying customer ID and other details.
A KYC RPA model will take care of everything from data collection to loading to transformation. This means that something as monotonous as recording customer information into the system can also be automated. With the use of machine learning and AI, the tool can extract data from customer documents and record it in corresponding fields for real-time processing. Automation brings the advantage of increasing efficiency, which has accelerated the entire onboarding process in financial organizations, increased compliance standards, and has continued to help save costs.
Enhancing Overall Banking Operations
There are many repetitive administrative tasks in banking operations. With RPA, banks and other financial organizations can deploy AI bots and automate tasks, such as processing customer inquiries, deposits, withdrawals, loan disbursements, and account transfers.
When we talk about RPA in banking, we do not only mean the automation of customer transactions; RPA can also transform back-office processes brilliantly. For example, the continuous monitoring of regulatory changes and sanction lists is automated to increase compliance standards and eliminate manual work. Similarly, lending workflows are automated, where the tool gathers data digitally, verifies incomes, pulls credit reports, and verifies collaterals - all with little human support. Credit card processing, automatic fraud detection, and automation of miscellaneous transactions are few other examples of this scenario.
Unlocking Transformation in the BFSI Space – Tech Mahindra’s BPA Solutions
Tech Mahindra has built intelligent automation and AI services to fill a critical gap in the BFSI industry. With a vision to generate valuable insights, enhance business process efficiency, and achieve extraordinary customer experiences, the team has taken an all-rounded strategy to cater to all BFSI operations and deliver impressive outcomes. Right from advisory and consulting to end-to-end implementation of automation solutions for our clients, we have achieved remarkable feats with solutions like banking products, lending and leasing platforms/products, payments and transaction banking solutions, wealth and asset management solutions, risk and compliance solutions, retirement and pension-related solutions, and complete digital banking solutions.
By leveraging leading technology like Generative AI, Blockchain, ESG and others, we have ensured that BFSI enterprises can have digitally immersive and futuristic experiences.
You can explore more about Tech Mahindra’s offerings in the BFSI space on our website or write to us at bpsmarketing@techmahindra.com to learn more.
