With digital transformation being a key mandate, banks are no more just an avenue to park your savings and avail loans basis your ability to generate future cash flows. Banks could now be defined as technology companies that hold a banking license.
However, there are several processes that are rule-based, redundant and repetitive. With technology at its core, a bank can automate many of these processes and relieve the people doing these mundane jobs to graduate to more intellectually stimulating roles.
Here’s a list of interesting use cases that some banks have adopted to ensure that their skilled human capital can work on more challenging roles and accelerate growth.
Automation of NACH Transaction Reconciliation
National Automated Clearing House (NACH) for Banks, Financial Institutions, Corporates and Government enables interbank, high volume, electronic transactions which are periodic and repetitive. It enables to make bulk transactions such as distribution of subsidies, dividends, salaries, interest and for collection of utility payments, mutual fund investments and so on.
Banks must undertake the reconciliation of the NACH credit and debit which is repetitive and a periodic exercise. By implementing a Bot to understand and check each credit and debit transaction, a bank can automate the entire process of reconciliation of NACH transactions thereby freeing up critical resources who would have to do this job day-in and day-out.
While such automation can eliminate human errors, they can also enhance productivity to a great extent. For instance, the BOT deployed by the Clover Infotech RPA team to get this NACH transaction reconciliation process managed has ensured that the entire reconciliation can be managed in 5 minutes as against 2 hours taken by the employee working on this activity. It could save more than 700 man-hours annually. Isn’t that a fascinating productivity hack? As the number of NACH transactions will increase, the automation of NACH transaction reconciliation process will become an essential requirement under the automation ambit. If you would like to try this for your bank, drop us a query through our Chatbot DIYA
Better Non-Performing Asset (NPA) tracking and Analysis
The regulator had mandated to automate processes that comprises personally identifiable information (PII). The automation enabled extraction of PAN numbers of customers from a source system and the remaining details mapped to the PAN card of the customer from the core banking system. Once this was done, the NPA flag of each customer was checked and the customers with ‘No’ in the NPA flag was uploaded back to the source system. This enabled to automatically clean up the source system with PAN numbers of only those customers who hadn’t been classified as an NPA by the bank. This automation process enabled the bank to track and manage NPA better while not having to deploy a person or a team to just track and create a report on the NPA cases in the bank. Want to know more about this process or implement the same in your bank? Write to us at email@example.com
Interesting to note here that the time taken by a team of human beings to execute this process seamlessly is close to two hours. However, with our automation expertise, we were able to save nearly 98% of the time taken for the same while ensuring the data integrity and safeguarding of critical PII data.
Fixed Deposit Account Automation
The bank received multiple requests for Fixed Deposit account opening and closing. The process involved fetching of data from multiple sources. In the case of FD account closure, the ops team notified the finance team for balance disbursement. This entire process was repetitive, redundant, tedious, and prone to errors.
By building a BOT to manage this, a bank can ensure seamless automation of the entire management of an FD account including disbursement of the accrued principal and interest in case of an account closure request.
The BOT could fetch details of the FD requests (both opening and closure) from the ticketing engine. It can then hit the CRM (such as Salesforce) and fetch the details of the customer. Based on the instructions in the ticket, the BOT can create or delete an FD account that is in the name of the customer. In case of an account closure request, the BOT will send intimation to the finance team to ensure balance disbursement.
The entire process which takes two hours of manual effort while being highly error prone can now be done within an hour with minimal chances of an error. It can save up more than 8000 hours of manual effort if a mid-sized bank decided to automate the FD requests coming its way. How good is that?
If you are a bank (or a banker responsible for these areas in a bank) and you would like to embrace more than 10 such interesting automation processes, use cases to enhance your employee productivity while ensuring seamless operations with digital technology, we are just a click away. (Link here).