Customer-side digital banking is not new. From ATMs to online banking, digital banking has been a reality for customers for decades. Banks without a certain degree of automation find it difficult to compete in a personal and business banking market that puts a premium on convenience and efficiency.
The Digital Transformation in the Banking IndustryIn the past five years, back-office robotic process automation management practices have begun taking hold and gain significant demand in the banking industry. Banks are quickly coming to realize the empowerment, efficiency and value of a digital transformation.
Top 4 Operations Banks Can Automate to Increase Efficiency and Lower Costs
1. Accounts Payable
2. Mortgage Lending
One of the more paperwork-intensive branches of a bank, mortgage lending entails application and documentation preparation, underwriting processes, and loan closing, among other manual-intensive tasks. In 2015, Housing Wire published an article in which the Mortgage Bankers Association quoted the average cost to originate a loan as $7,195 per loan.
One of the biggest costs associated with mortgage lending was staff salary to perform "document review and audit, data entry, document tracking, internal and external communication and collaboration with third parties." In addition to processing costs, human error compounds the amount of money banks spend on mortgages, and bank employees are forced to backtrack and correct mistakes.
Robotic process automation, more than anything else regarding mortgage lending, increases the production and efficiency of a bank's staff with respect to case management. According to research by PMR Consulting, cited in a report by Fiserv, when they use automation, "loan processors could see a productivity increase of 30 percent."