The rise of the bots in Banking,
Financial Services & Insurance (BFSI)

By Bhavik Patel | November 2020

Research conducted by Grandview Research indicated that the global robotic process automation in the BFSI market size was valued at USD 167.1 million in 2018 and is anticipated to register a CAGR of 31.3% from 2019 to 2025. And like other industries, banking and financial services are multi-dimensional in that they have several processes running both in the background and the front end.

The BFSI industry is continuously and rapidly changing, and in this changing environment, this particular industry is under great pressure to cut costs and yet maintain high levels of service.

Customers today want easy and quick access to services, great personalization, and value for their money and therefore it has become essential to increase the agility of work and deliver enhanced customer experience.

The problem with this however is that a large number of financial institutions have siloed systems and highly intensive paper-based processes that can be daunting. They are confronted with the test of keeping up the highest security, whilst increasing their efficiency at lower costs. Also, their employees are too focused on repetitive and labor-intensive tasks, and consequently incapable to focus on other high-value tasks. They also face challenges such as intense competition, workflow disconnect, and inaccurate reporting of transactions.

There is however a solution to all of these problems and that is Robotics Process Automation. RPA is a concrete solution that can efficiently manage these operational challenges and compliance. It helps organizations by handling back-office operations and subsequently freeing the resources to focus on customer service.

The robots are deployed to mimic the day-to-day and routine tasks that are performed by the employees following the same business rules, and these tasks can be easily automated.

Some of the basic tasks that an RPA bot can fulfill are:

• Copying and pasting data
• Filling out forms
• Extracting and merging data
• Reading and writing databases
• Formatting data

RPA is a powerful tool addressing the critical needs of the BFSI sector, assisting them in compliance operations, with an increase in efficiency and reduction in errors. The ultimate goal for the BFSI industry is to improve their overall customer experience and companies are on an exponential increase in implementing RPA. RPA has helped banks and insurance companies reduce manual efforts, assure better compliance, reduce risks, whilst improving their overall customer service & profitability.

According to Forrester reports, the RPA market is set to reach $2.9 Billion by 2021 and the expectations of the BFSI industry deploying robots are high. Here we will look at the top 4 areas where RPA is currently being used in the BFSI industry and some of the benefits associated with the technology:

Top 4 areas where RPA is being used in the BFSI industry

1. Know Your Customer (KYC)

KYC usually involves a large number of full-time employees (FTEs) to perform the labor-intensive task. KYC is known to be a data-intensive process and hence RPA can easily assist by automating tasks such as validating the customer data and provide the benefits of being both time and cost-efficient. This process can be completed without the need for excessive employees, with minimal errors, and 100% accuracy.

2. Account opening/closing

There are enormous amounts of account opening & closing requests each month. By implementing RPA, the process of account opening has become much more straightforward. This is not only achieved quickly and accurately, but it also eliminates errors and enhances the data quality entered into the system. With account closing, the requests can be automated without requiring human intervention. If there are any specific documents that are required to be fulfilled by the customers, then the robot can automatically generate notifications and reminders to the customers and validate the submissions of these documents before closing the account.

3. Fraud Detection

Over the years, financial transactions have multiplied and have made it difficult for the BFSI to manually detect fraud patterns. Using automation, such fraudulent patterns can be easily tracked and flagged in real-time, so that the right action can be taken without any delay. Organizations can either stop the suspicious transactions or block the account as they see fit, and can automate this task by assigning rules

4. Loans & Mortgage Processing

Loans & mortgage processing has always been considered to be a very tedious process. Although organizations have automated this process to a certain extent, further automation can reduce the effort required and improve efficiency. Previously, it used to take weeks to process an application, which led to customers waiting a long period of time, dissatisfaction, and in some cases, cancellation of applications. RPA now helps organizations to accelerate the process by streamlining the various tasks involved and addresses the bottlenecks that usually resulted in delaying the process.

Top 4 Benefits of RPA for BFSI

1. Time & Cost-effective Solution

Moving to RPA allows organizations to invest in one platform rather than verifying that each application can integrate seamlessly with other solutions as the RPA bots can seamlessly integrate with multiple legacy systems. A process can typically be automated within 4-8 weeks and organizations can typically see an ROI within 6 – 12 months. Organizations in the BFSI industry can leverage the power of RPA for multiple use cases, which are highlighted above.

2. Enhanced Industry Compliance

The BFSI industry has stringent rules and regulations that need to be complied with at all times. RPA enables organizations to maintain high process compliance and reduce business risks as it generates audit trails and helps organizations to abide by the mandates and regulatory compliances. The robot can also be programmed to auto-post data to all of the required systems, such as those required for SWIFT compliances, to fulfill these norms and increase compliance.

3. Enhanced Customer Experience

In this day and age, customers are always looking for first-class customer service. Several tasks are performed by the call center agents and some of them can be automated based on their actions, such as displaying the relevant information required for the call. This not only reduces the call duration, but it also improves customer satisfaction and enhances communication with the customer during the call. During or after the call with the customer, RPA bots can automatically generate responses delivering faster resolution and quick support.

4. Improved Business Operations

With RPA, business operations can be significantly improved, as processes could take significantly less time than being completed manually. An example of this could be mortgage applications, this process is conventionally known to be a slow and time-consuming process but can be accelerated by automation. RPA can help gather the information required and run background checks based on the eligibility criteria and validates the identity immediately to know if the person is qualified for a mortgage loan.


The Japanese financial institutions Sumitomo Mitsui were able to cut out 400,000
hours of manual labor for their employees by automating their processes.


The Japanese financial institutions Sumitomo Mitsui were able to cut out 400,000 hours of manual labor for their employees by automating their processes.

3 simple steps to follow to start your RPA journey

RPA is here to stay and is already revolutionizing the BFSI industry, as its acceptance in the sector increases every day. To realize the maximum potential of RPA, the BFSI should use the following approach:

1. Assess the requirement

Organizations should start by analyzing their current processes and checking their suitability for RPA, with some of these criteria having been highlighted in a previous blog. You should then shortlist the various processes based on the organization’s objective or operational issues that RPA can address efficiently and effectively, whilst assessing the impact, benefits, and feasibility of the automation.

2. Build a business case

Build a business case to show the comparison of costs involved to build & maintain the RPA solution versus the various benefits associated with automation. The business case should include the cost of the resources required, software licenses, hardware, to name a few and the benefits.

3. Choose the right model

There are several RPA vendors on the market, and the top 3 leaders are Automation Anywhere, Blue Prism, and UiPath. There are also many consultancies out there who can help you with implementing RPA. You should find the right partner who can provide an end-to-end RPA implementation service and provide further support to maintain the robots if required.

Keeping automation operational 24/7

With any technology or software implemented in your organization, it is imperative that you have an appropriate plan for support & maintenance in place, to ensure it is operational at all times. If you have already implemented RPA or thinking about implementing RPA, you can now outsource the support & maintenance of the robots, and here are the top 5 reasons why:

● Reduce costs of support & maintenance
● Improve productivity by having your high-value resources focus on innovating rather than supporting
● Enables your organization to scale the efforts quickly without having to worry about support & maintenance
● 24/7/365 support as your business-critical process will run 24/7/365
● Maintenance of your processes all year round to cater to process & season changes

There are a multitude of reasons why you should consider outsourcing your RPA support & maintenance to a trusted partner. As your organization scales its efforts in RPA, the support & maintenance of these robots will grow. Outsourcing will enable your organization to scale without having to worry about maintaining your existing bots.

Quantanite can provide first and second line support as well as managing the communication for the third line support with the IT team or the RPA vendor so that the business can focus on innovating without worrying about support. We can also set up automatic alerts on your RPA solution allowing the robots to directly communicate any faults to our ticket managing system, as well as have a plan in place to monitor, maintain & optimize processes.

Are you thinking about implementing RPA?
Are you currently struggling to scale?
Are your high-value resources assigned to bot maintenance rather than innovating?

Contact one of our experts for a free health check.

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