Why RPA Is Key To Fintech Growth

November 30, 2022 Digital, NEO, Open Banking, Open Finance, Enterprise, Entrepreneurs, Start-ups, Small Businesses, Fintech AI/ML, Data-driven, FinTech and Alternative Finance, Fintech International, Fintech Services, Innovation and Resources, Leadership, Productivity, Competition, Human Capital, Health No comments

Guest Post | Nov 30, 2022

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It’s without a doubt how technological advancements are revolutionizing how industries operate today. For instance, in the financial industry, there’s notable growth in terms of computer processing capabilities. And among the innovations today is Robotic Process Automation (RPA).

What Is Robotic Process Automation (RPA)

Robotic process automation refers to technology or software used to streamline rule-based or repetitive processes and workflow commonly carried out by humans. With such tools, companies can save time, money, and resources through automation in production and other operations. Customers, meanwhile, could also benefit from improved accuracy, efficiency, and service quality.

RPA is gaining traction across telecommunications, customer service, manufacturing, and healthcare industries. Apart from these, RPA is also utilized in finance, particularly in various Fintech developments and applications. From traditional banking to blockchain technology, RPA is now widely used in the financial industry. With continued developments, automation can propel Fintech to further growth in the long run.

If you’d like to know why RPA is key to Fintech growth, continue reading this article.

1. Can Open More Business Opportunities

The banking and finance sectors have become increasingly competitive, including interest and approval rates, banking convenience, and customer service. Thanks to automation, what used to be hurdles in traditional banking services and processes can now be minimized, if not completely eradicated.

For instance, RPA can allow a hassle-free application process for a startup business line of credit. Compared to how complex it was to apply for a bank loan a few decades past, startup owners at present need only to access digital banking apps and explore their credit options. The approval process can also be sped up from a couple of hours to several days.

New business through loans and credits is just one of the many examples of how RPA can help propel banking and finance to further growth. As technology only continues to develop, it’s up to the companies to use RPA to their advantage and think of new financial solutions they can offer to their customers.

2. Boosts Efficiency And Accuracy

One of the main advantages of RPA is its ability to streamline operations in various ways. Automated transactions can be made simple, quick, convenient, and accurate. They can also be an effective way to trim down operation costs, optimize time, and manage resources more effectively, allowing your employees to work and focus on other essential functions of the firm. Overall, RPA can boost the operational efficiency and productivity of the banking and finance industry.

In addition to efficiency, there could also be an increase in accuracy since RPA software can also help minimize human errors attributed to the employee’s lack of knowledge, confusion, or carelessness. After all, regardless if the mistake is minor or substantial, errors in accounts can lead to significant consequences, such as a decrease or increase in profits due to financial statement inaccuracy. However, by getting RPA services from 1Rivet or other providers, these can be reduced since common and repetitive tasks like data entry can be streamlined and automated, resulting in lower operational risks.

3. Enhances Customer Experience

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RPA offers many advantages to companies or businesses, but customers could also benefit from automation because it enhances their overall experience.

For one, since internal workflow and operations can be streamlined, employees can allocate their time and focus on other tasks, like customer support. This means that instead of performing administrative and other repetitive functions, they can have more time to attend to and address customer concerns and queries.

Moreover, since customer service is time-consuming and demanding, RPA can also be beneficial in automating customer support functions. RPA can help improve communication and interactions between banks and their customers. This means it’s become more accessible for clients to reach out to financial companies for queries and other concerns through chatbots or automated voice machines. Meanwhile, companies can send thousands of messages in minutes through automated chat and email.

4. Supports Financial Crime Prevention

Cyber fraud and other financial crimes like wire transfer fraud have become significant hurdles to Fintech’s growth. This is especially since, as technology develops, hackers have also enhanced their efforts to access digital assets and funds in various forms illegally. Because of this, it’s crucial for banks and financial institutions to use RPA.

Digital processing of transactions offers improved accuracy regarding checking credentials and authorization. This can help minimize and prevent human error, which is why automated processes can help prevent financial crimes. Aside from accuracy, RPA also makes it possible to detect fraud quickly and more effectively. Bots can see patterns if there are any suspicious activities and notify the proper authorities as they happen.

See: The Enterprise Automation Imperative—Why Modern Societies Will Need All the Productivity They Can Get

Financial protection is vital to many Fintech developments, including blockchain technology, DeFi, and newer ones that have yet to hit the market. Fintech’s marketability significantly relies on public trust. And through RPA, these financial platforms can display their credibility to their investors and other stakeholders.

Conclusion

RPA has allowed banking and finance to grow and remain competitive amidst technological advancements. For one, automation opens business opportunities, boosts efficiency, improves customer experience, and supports financial crime prevention. With all of these in mind, RPA becomes the future of Fintech because of its many advantages and opportunities.

NCFA Jan 2018 resize - Why RPA Is Key To Fintech Growth The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org