# Robots Will Do More for Banks Than Simple Cost Cutting
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2020-01-08
Category: BANKING
Category URL: https://financedigest.com/category/banking
Meta Title: Why Robotic Process Automation (RPA) is Essential for
Meta Description: Discover how RPA revolutionises banking processes, improves customer service, and boosts efficiency. Learn how top banks are benefiting from RPA today.
URL: https://financedigest.com/robots-will-do-more-for-banks-than-simple-cost-cuttinghtml

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**_Will Davenport_** _explains why Robotic Process Automaton (RPA) is a ‘must have’ tool for contact centre managers in streamlining processes and eradicating pain points_

![Will Davenport](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/will-davenport-450x300-1736838968901-compressed.jpg)

Will Davenport

Banking is made up of complex and time consuming processes in the back office, ruled by compliance and regulation, which have a direct impact on the customer experience – this is where RPA has the power to streamline and enhance customer service.

Following regulatory protocols and instituting background checks are imperative, but despite [customers understanding of these necessities they still want to be able to set up and change](https://www.financedigest.com/how-brands-can-adapt-marketing-tactics-to-better-suit-customers-changing-shopping-habits.html "How brands can adapt marketing tactics to better suit customers’ changing shopping habits") accounts, apply for loans as seamlessly and quickly as possible.

This is where RPA comes in. [Robots offer](https://www.financedigest.com/digitization-to-offer-stewardship-to-the-robotic-surgery-market.html "Digitization to offer stewardship to the Robotic Surgery Market") a number of key advantages that have huge benefits for the banking sector. As well as being [time and cost](https://www.financedigest.com/netflixs-gaming-foray-will-cost-time-and-money-wall-st.html "Netflix’s gaming foray will cost time and money – Wall St") efficient they can significantly improve workflows. They can also deliver superior results to humans, as they have zero margin for error and can work through repetitive, monotonous tasks 24/7. With the addition of [artificial intelligence](https://www.financedigest.com/artificial-intelligence-in-banking-magazine.html "Artificial Intelligence in Banking Magazine") (AI) and cognitive computing they can also be trained to work autonomously.

_RPA puts [banks’ call](https://www.financedigest.com/analysis-powerful-swiss-central-bank-faces-reform-calls-in-wake-of-credit-suisse-rescue.html "Analysis-Powerful Swiss central bank faces reform calls in wake of Credit Suisse rescue") centres back on track_

Take for example an Italian bank, which was having difficulty meeting its own SLAs due to the large number of calls it was receiving into its contact centre. A team of 500 agents were handling a staggering 650,000 a month. With many calls requiring follow-up activities, primarily data entry, it was pushing resources to the limit. Operatives were finding it almost impossible to [meet the five-minute response time target](https://www.financedigest.com/with-progress-in-creditor-talks-malaysias-airasia-x-targets-end-oct-meetings.html "With progress in creditor talks, Malaysia’s AirAsia X targets end-Oct meetings") for fraud alerts.

An RPA platform was deployed which automated many of the post-call manual activities, which were eroding agents’ time. In addition, desktop [automation tools were utilised to guide agents through the fraud alert process](https://www.financedigest.com/the-aquaculture-feed-and-pharmaceutical-market-to-move-ahead-on-rpa-robotic-process-automation.html "The Aquaculture Feed And Pharmaceutical Market to move ahead on RPA (Robotic Process Automation)"). The contact centre is now [meeting its SLAs 100% of the time](https://www.financedigest.com/beijing-meets-state-air-quality-standards-for-first-time-in-2021.html "Beijing meets state air quality standards for first time in 2021"). The average handling time of the closing phase has been reduced by 82%. The [bank also records](https://www.financedigest.com/credit-suisse-shares-hit-record-low-after-report-bank-is-looking-to-raise-cash.html "Credit Suisse shares hit record low after report bank is looking to raise cash") 99% accuracy in the handling of over 8,000 fraud alerts a month.

Of course there has been much hype about RPA. [Gartner](https://www.gartner.com/en/newsroom/press-releases/2019-06-24-gartner-says-worldwide-robotic-process-automation-sof) maintains that the global RPA software market grew by a phenomenal 63% last year with banks being one of the biggest adopters. In our experience, as well as making significant cost and efficiency improvements, RPA platforms also help speed up organisations’ [digital transformations](https://www.financedigest.com/how-to-create-value-in-digital-transformations.html "How to create value in digital transformations"). Here we outline six benefits we have seen that are deliverable from an RPA approach:

1. _Automation inevitably reduces costs._ According to [Softomotive’s survey](https://www.softomotive.com/rpa-deployment-in-it-functions-of-growth-companies/white-paper/) of medium-sized businesses adopting RPA, 44% identified reduced operating costs as a main benefit. This is achieved through [improved efficiencies](https://www.financedigest.com/improved-patient-safety-efficient-dose-administration-and-seamless-interoperability-for-advanced-infusion-delivery-are-several-advantages.html "Improved patient safety, efficient dose administration, and seamless interoperability for advanced infusion delivery are several advantages") and workflow together with lower staffing levels.
2. _RPA cuts errors._ Any RPA failures are due to [human error](https://www.financedigest.com/outthink-raises-10-million-to-tackle-human-errors-behind-data-breaches.html "OutThink raises million to tackle human errors behind data breaches") rather than technology and allows banks to learn from past mistakes. An Arvato Bertelsmann report highlighted the fact that improved accuracy supports compliance and [quality control](https://www.financedigest.com/quality-control-measures-for-drug-development-are-of-utmost-importance-as-inadvertent-presence-of-unknown-pharmaceutical-ingredients-can-further-complicate-health-conditions-of-the-patients.html "Quality control measures for drug development are of utmost importance as inadvertent presence of unknown pharmaceutical ingredients can further complicate health conditions of the patients."), with automated processes being fully auditable.
3. _RPA frees up humans from mundane tasks to focus on core [business activities](https://www.financedigest.com/euro-zone-business-activity-contracted-again-in-august-pmi.html "Euro zone business activity contracted again in August -PMI")._ This can add enormous value to [business operations where the human touch goes along way](https://www.financedigest.com/five-ways-businesses-can-prepare-themselves-for-the-digital-economy-be-kaler-pilgrim.html "Five ways businesses can prepare themselves for the digital economy – Be Kaler Pilgrim") in attracting new customers and retaining customer loyalty. The Arvato Bertelsmann [report found that 96% of respondents looked to automation](https://www.financedigest.com/impact-com-named-a-market-leader-in-research-in-actions-partner-management-automation-report-and-in-g2-winter-reports.html "impact.com Named a Market Leader in Research in Action’s Partner Management Automation Report and in G2 Winter Reports") to free up staff time for more business-critical tasks.
4. _RPA can enhance [service levels](https://www.financedigest.com/is-ai-taking-quality-and-cost-optimization-of-enterprise-services-to-the-next-level.html "Is AI taking quality and cost optimization of enterprise services to the next level?")._ The faster and more efficiently your teams can complete tasks the better the overall quality of service. Increased accuracy also supports tighter SLAs. The freeing up of staff time allows customer-facing staff to focus on delivering a premium, personalised customer experience.
5. _RPA’s unique ability to pull together diverse systems is one of its unique attributes._ Arvato Bertelsmann [spotlighted several key](https://www.financedigest.com/vehicle-mounted-spotlights-market-industry-outlook-growth-prospects-and-key-opportunities.html "Vehicle Mounted Spotlights Market: Industry Outlook, Growth Prospects and Key Opportunities") benefits in its report, including the ability to update and change processes centrally rather than having to address each one individually.
6. _RPA offers an accelerated ROI._ Many adopters of RPA report quick and substantial returns on investment, which is music to the ears of any CEO. [One study from the Everest Group](https://www.forbes.com/sites/peterbendorsamuel/2018/05/30/two-key-enablers-for-roi-in-robotic-process-automation/#1b5347105b22) cited that the average company could expect to double its investment in initial returns, rising to a multiple of four for the top performers.In one stand-out example, Telefonica 02 [claimed an ROI of “650-800%” within three years](https://www.financedigest.com/u-s-labor-market-powers-ahead-as-weekly-jobless-claims-fall-layoffs-hit-24-year-low.html "U.S. labor market powers ahead as weekly jobless claims fall, layoffs hit 24-year low") of deploying RPA for transactional processes.

The beauty of RPA is that it can be applied to [customer service](https://www.financedigest.com/transforming-to-customer-centric-service-in-financial-services.html "Transforming to customer centric service in Financial Services") enquiries in the call centre directly as well as to information flow in the bank itself. Working together with RPA [banks and other financial institutions can dramatically improve the customer experience](https://www.financedigest.com/the-next-generation-of-customer-experience-in-banking.html "The next generation of customer experience in banking") and provide a faster, more seamless overall service.

_The author is a director at_ [_Business Systems (UK) Ltd_](https://www.businesssystemsuk.co.uk/about) _, a specialist for 30 years in providing call recording and workforce optimisation solutions for investment banks, city trading floors and insurance companies_


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