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How your bank can save $100k a year on automation?

How your bank can save $100k a year on automation

How your bank can save $100k a year on automation?

Learn how your bank can save $100k a year on automation by implementing Robotic Process Automation (RPA). We explore the benefits of RPA and provide practical examples of how it can be used to automate onboarding processes, transaction processing, customer service, and compliance and regulatory reporting.

In today's fast-paced business world, efficiency and cost-saving are key factors for any organization to stay competitive. One way for banks to achieve these goals is through the implementation of Robotic Process Automation (RPA). RPA is a form of automation technology that allows organizations to automate repetitive, routine tasks, freeing up human employees to focus on more value-adding work. 

In this article, we will explore how your bank can save $100k a year on automation by implementing RPA. We will discuss the benefits of RPA, how it works, and provide examples of how it can be implemented in a bank setting. 

What is RPA and how does it work? 

RPA is a type of software that can be programmed to mimic the actions of a human worker. It can be used to automate tasks such as data entry, processing transactions, and responding to customer inquiries. 

One of the key benefits of RPA is that it can be easily integrated with existing systems and processes, making it a cost-effective solution for automating routine tasks. 

RPA works by using software "bots" to perform specific tasks. These bots can be programmed to follow a set of rules and can be trained to perform tasks through machine learning. 

For example, a bot could be programmed to log into a system, navigate to a specific page, and extract data from the page. The bot could then be programmed to input this data into another system, or to perform calculations based on the data. 

Benefits of RPA for banks 

There are numerous benefits of implementing RPA in a bank setting. Here are just a few examples: 

Increased efficiency: RPA can significantly increase the speed and accuracy of tasks that are performed repeatedly, freeing up human employees to focus on more complex and value-adding work. 

Improved customer service: By automating routine tasks, banks can improve their response times to customer inquiries, leading to increased customer satisfaction. 

Reduced errors: RPA eliminates the risk of human error, resulting in fewer errors and mistakes in processes. 

Cost savings: RPA can help banks reduce labor costs by automating routine tasks that would otherwise be performed by human employees. 

Improved compliance: RPA can help banks ensure compliance with regulatory requirements by automating tasks such as data entry and document management. 

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How your bank can save $100k a year on automation? 

Let’s explore how your bank can save $100k a year on automation by implementing RPA in a variety of practical use cases.  

By automating tasks such as onboarding processes, transaction processing, customer service, and compliance and regulatory reporting, banks can significantly reduce labor costs and improve efficiency. Read on to learn more about the benefits of RPA and how it can help your bank save money. 

1. Automating onboarding processes

Onboarding is the process of introducing a new employee to an organization and helping them become acclimated to their new role. This process typically involves completing a variety of tasks such as filling out paperwork, completing background checks, and receiving training. 

The onboarding process can be time-consuming and resource-intensive, particularly for banks that have a high volume of new hires. By implementing RPA, banks can automate many of the routine tasks associated with onboarding, such as data entry and document management. 

For example, a bot could be programmed to log into a system, access new hire paperwork, and input the data into the appropriate fields. The bot could also be programmed to retrieve and store relevant documents, such as background check results or training materials. 

By automating these tasks, banks can save time and resources that would otherwise be spent on manual data entry and document management. This can result in significant cost savings, particularly for banks with a high volume of new hires. 

For example, let's say that it takes an average of 4 hours for a human employee to complete the onboarding process for one new customer. If your bank has 1,000 new customers to onboard each year, this would require 4,000 hours of labor. Assuming an average salary of $25 per hour, this would cost your bank $100,000 per year in labor costs. 

By implementing RPA, your bank could potentially automate many of these tasks, resulting in significant cost savings. For example, if your bank is able to automate 50% of the onboarding process with RPA, this would result in a cost savings of $50,000 per year. 

It's difficult to estimate the exact cost savings that a bank could achieve through automation of onboarding processes, as it will depend on factors such as the number of new hires and the salary of human employees who would otherwise be performing these tasks. However, it's safe to say that automating onboarding processes can result in significant cost savings for banks. 

2. Streamlining transaction processing

Transaction processing is a critical function for any bank, as it involves the handling of financial transactions such as deposits, withdrawals, and transfers. These tasks typically require a significant amount of data entry and calculation, and can be time-consuming and resource-intensive if performed manually. 

By implementing RPA, your bank can automate many of these tasks, freeing up human employees to focus on more value-adding work. 

For example, RPA bots could be programmed to log into a system, retrieve customer transaction data, and perform calculations based on the data. The bots could then be programmed to input the results of these calculations into another system, or to generate reports or alerts as needed. 

By automating these tasks, your bank can significantly reduce the time and resources needed to process transactions. 

For example, let's say that it takes an average of 2 hours for a human employee to process 100 transactions. If your bank processes 100,000 transactions per year, this would require 200,000 hours of labor. Assuming an average salary of $25 per hour, this would cost your bank $5,000,000 per year in labor costs. 

By implementing RPA, your bank could potentially automate many of these tasks, resulting in significant cost savings. For example, if your bank is able to automate 50% of the transaction processing tasks with RPA, this would result in a cost savings of $2,500,000 per year. 

Overall, the implementation of RPA in the transaction processing process can help your bank save significant time and resources, resulting in a strong return on investment. 

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3. Improving customer service

Customer service is a critical function for any bank, as it involves responding to customer inquiries and concerns in a timely and accurate manner. These tasks can be time-consuming and resource-intensive if performed manually, especially if your bank has a large number of customer inquiries to handle. 

By implementing RPA, your bank can automate many of these tasks, freeing up human employees to focus on more complex and value-adding work. 

For example, RPA bots could be programmed to respond to frequently asked questions, such as account balances or transaction history. The bots could also be programmed to route customer inquiries to the appropriate department, based on the nature of the inquiry. 

By automating these tasks, your bank can significantly improve its response times to customer inquiries, leading to increased customer satisfaction. 

For example, let's say that it takes an average of 15 minutes for a human employee to respond to a customer inquiry. If your bank receives 1,000 customer inquiries per day, this would require 250 hours of labor per day, or 62,500 hours per year. Assuming an average salary of $25 per hour, this would cost your bank $1,562,500 per year in labor costs. 

By implementing RPA, your bank could potentially automate many of these tasks, resulting in significant cost savings. For example, if your bank is able to automate 50% of the customer service tasks with RPA, this would result in a cost savings of $781,250 per year. 

Overall, the implementation of RPA in the customer service process can help your bank improve response times and customer satisfaction, while also saving significant time and resources, resulting in a strong return on investment. 

Banking RPA ROI Calculator

4. Simplifying compliance and regulatory reporting

Compliance and regulatory reporting is a critical function for any bank, as it involves ensuring that the bank is in compliance with regulatory requirements and reporting relevant information to regulatory bodies. These tasks typically involve a significant amount of data entry and document management, and can be time-consuming and resource-intensive if performed manually. 

By implementing RPA, your bank can automate many of these tasks, freeing up human employees to focus on more complex and value-adding work. 

For example, RPA bots could be programmed to log into a system, retrieve regulatory reporting data, and input this data into the appropriate forms or templates. The bots could also be programmed to manage and organize documents related to compliance and regulatory reporting, such as by filing them in the appropriate location or generating reports as needed. 

By automating these tasks, your bank can significantly reduce the time and resources needed to complete compliance and regulatory reporting, while also ensuring that all relevant information is accurately reported. 

For example, let's say that it takes an average of 4 hours for a human employee to complete compliance and regulatory reporting tasks for one month. If your bank has 12 months of compliance and regulatory reporting tasks to complete each year, this would require 48,000 hours of labor. Assuming an average salary of $25 per hour, this would cost your bank $1,200,000 per year in labor costs. 

By implementing RPA, your bank could potentially automate many of these tasks, resulting in significant cost savings. For example, if your bank is able to automate 50% of the compliance and regulatory reporting tasks with RPA, this would result in a cost savings of $600,000 per year. 

Overall, the implementation of RPA in the compliance and regulatory reporting process can help your bank ensure compliance with regulatory requirements and save significant time and resources, resulting in a strong return on investment. 

Conclusion  

Implementing RPA in a bank can result in significant cost savings, but it's important for banks to carefully consider the potential return on investment (ROI) before making the decision to implement RPA. 

One way for banks to estimate the potential ROI of RPA is to use an RPA ROI calculator. These calculators allow banks to input specific data about their organization, such as the number of employees, the salary of employees, and the time and resources spent on specific tasks, to calculate the potential cost savings of implementing RPA. 

For example, a bank could use an RPA ROI calculator to estimate the cost savings of automating onboarding processes. By inputting data such as the number of new hires per year, the salary of human employees who currently perform onboarding tasks, and the time and resources spent on these tasks, the calculator can provide an estimate of the potential cost savings of automating onboarding processes. 

By using an RPA ROI calculator, banks can get a better understanding of the potential benefits of implementing RPA in their organization and can make more informed decisions about whether or not to invest in RPA. If you're interested in learning more about the potential ROI of RPA for your bank, we recommend checking out our RPA ROI calculator yourself. 

Looking to automate your banking processes? Transform your financial institution with Zuci Systems: the trusted RPA implementation partner for banks and credit unions. Our comprehensive Banking RPA Services will help you modernize and automate your processes for increased efficiency and productivity.   

Janaha

Janaha Vivek

I write about fintech, data, and everything around it | Assistant Marketing Manager @ Zuci Systems.