RPA in financial institutions: Applications, challenges and strategies for success

The financial services sector has undergone a transformative shift in recent years, driven by the integration of digital technologies such as Robotic process automation (RPA). Beyond being a cost-saving tool, RPA is now recognized for its ability to enhance customer experiences and drive business growth by handling complex processes, from customer onboarding to credit risk assessment.

Industry applications of RPA

RPA is transforming financial operations by automating key processes across multiple domains, including:

• Lending: Loan origination, processing, underwriting, funding, administration, monitoring and default management
• Cards and payments: Application processing, approvals, payments settlement, collections, dispute and fraud management and network oversight
• Customer experience: Data extraction, account maintenance, onboarding, fees and chargebacks, account closures and cash handling
• Risk and compliance: Transaction monitoring, risk reporting, alerts management and client due diligence

Key drivers of RPA adoption in financial institutions

As financial institutions adopt RPA, they navigate a dynamic environment shaped by changing customer demands, competitive pressures, regulatory developments, globalization and rapid technological advancements.

The following provides a closer look at these key factors and how RPA is positioned to address them:

1. Evolving consumer expectations

• Demand for speed and efficiency: Modern consumers expect quick, seamless banking experiences. RPA can help institutions meet these expectations by automating time-consuming processes.
• Personalized services: With RPA's data processing capabilities, financial institutions can offer more personalized services, from tailored investment advice to customized loan offers.