Robotic Process Automation is the ultimate technology that replaces human interference for redundant and repetitive tasks by bringing out all the structured data as well as processing it. Loan processing usually will be a lengthy process involving a lot of paperwork, dependencies, and data checks. Implementing RPA or Robotic Process Automation technology, especially in loan processing will allow banking institutions in automating various processes. Using RPA in loan processing will easily speed up all the processes, minimize labor-related tasks, increase reliability, shift the tasks to robots, and makes the workforce comfortable in performing other complicated tasks. RPA in loan processing will improve the current mechanisms of the banking industry along with assisting the industry to earn more profits.
Features of Automated loan processing
Robots will be utilized to mimic human behavior depending on a few instructions. They will work along with applications very faster when compared to humans without making any errors. Check the important features of automated loan processing.
Loan due report
RPA robots are capable of detecting loans that are to be cleared soon. RPA will collect files from various branches, combine them as well as send them to the required stakeholders. This may be implemented at a particular time such as 15 days before the scheduled payment of EMI or repayment.
Balance register
RPA in loan processing will be utilized for checking the balance register as well as figuring out the required charges that need to be collected. Also, accounts will be updated automatically for adding balances based on the available set of instructions.
Loan Closure NOC
Non-disclosure certificates will be offered through automation. The bot gets the documents along with the cheque of the pending loan amount and then checks the system to find if there is any amount that is left pending. If any amount is detected, the process will be halted as well as remarks will be updated. Else, the bot will initiate designing the NOC and sending it for review to the stakeholders.
Retail asset detail modification
After the documents are received, RPA bots will auto-check the entire information and if there is any flaw in the existing data, it initiates the updating process to the banking system via a concerned person of the bank. If it finds no existing savings account but the loan account alone, then the modification will be implemented by the bot with the help of the human approver.
Loan Exposure Sheet
In loan processing automation, RPA will be used for capturing information on social security numbers using the banking system and creating a final excel sheet that will be auto-sent to all the stakeholders. This certainly helps to calculate the loan exposure in an effective manner.
SME Credit Management
Robotic Processing Automation (RPA) will manage capital needs and small credit lines of medium and small enterprises (SMEs) with the help of robots. The processing speed will be increased via automated credit platforms for offering loan applications for small and medium-sized firms while accelerating the approval of all the applications.
Benefits of RPA in loan processing
There are various advantages of implementing RPA or Robotic Process Automation in loan processing. Let’s find out the most important benefits of RPA in loan processing.
Productivity growth
Automation will accelerate various actions such as data email sorting, entry, task assignments, and document routing. Eliminating a lot of time that is spent on various repetitive works, automation will improve productivity and business growth. Lenders may use the lost time for completion of other tasks, completing and processing various applications in less span of time, and enhancing the firm’s profits.
Fraud detection
Various incidents have proved that there is an increased fraud, especially in the banking industry and it leads to massive monetary losses. RPA will assist in mitigating losses by detecting fraud in the early stage with the assistance of LOS (Loss Origination Systems) which utilize the latest predictive analytics and determine how troublesome it is lending money to a specific borrower. The firms will customize various kinds of loans that are more vulnerable to fraud and utilize RPA applications.
Enhanced customer experience
Processing applications for loans is a time-consuming and burdensome task spoiled by a bad image. RPA in loan processing is having processing that will save its reputation by offering an enhanced customer experience. The minimized time taken is an amazing attraction for consumers along with the customized experience that RPA will deliver. There are very low chances of incorrectness when compared to other manual processes.
Easier audits
With the help of RPA in loan processing, all the documents will be sorted as well as processes will be swift which makes it simpler to execute compliance guidelines. This assistance eases the task of the auditor by offering simple access to operations and files. Following regulations will become quite easy with the assistance of RPA.
Predictable revenue
RPA will easily forecast the revenue that makes it a profitable technology. Automation will predict the revenue generation of the leads for a specific period of the loan sequence. The forecasted revenue helps to deal with all the market fluctuations and manage government regulations.
Conclusion
By using RPA, repetitive tasks will be easily automated resulting in greater efficiency. RPA will help organizations in managing competition as well as including low-cost and better quality banking processes that make the banking organizations beneficial. Nextbrain Technologies is the top Robotic Process Automation company providing custom and scalable RPA solutions to streamline your business operations and minimize repetitive tasks.
Saran
April 07, 2022 Author