Robotics in Banking
How are Robots Used in Banking?
Robots are already an essential component of the banking industry whether you see them or not. They operate on smartphones to create a more efficient mobile banking experience. More obviously, they take customers straight into a sci-fi novel and even provide in-person service at branches. Robotics are shaping the future of the industry for financial reasons as well as customer demand.
What is Robotic Process Automation in Banking?
If you think of artificial intelligence (AI) as a robot’s brain, then you could call robotic process automation (RPA) the eyes and hands. RPA allows for efficient, repeated processes and data collection while AI can interpret that data and change behaviors as a result. In banking, these systems can help with reviewing financial documents and cut down on human error. Additionally, banks can automate tasks such as mortgage approval, processing credit card orders, cleansing accounts and cost accounting.
People commonly hear these types of automation referred to as bots. Bank of NY Mellon Corp. is investing heavily in this technology, rolling out more than 200 bots to handle tasks such as transferring funds. As a result, BNY Mellon reported an 88 percent improvement in processing time and its funds transfer bot saved the company $300,000 alone. The possibilities for automation are seemingly endless in the financial sector.
Which Banks are Making the Most of Robotic Technology?
Robotics is changing the banking sector in two major areas: behind-the-scenes operations and customer experience. Robots are predicted to cut operating costs for banks substantially through reduced staff, increased efficiency and a decreased need for physical locations. Robots also remove the risk of human error and ensure compliance with regulators seamlessly, decreasing the time and resources used to fix mistakes.
Major banks such as Bank of America, Citibank and the Bank of Tokyo are using robotics to provide superior service and security. Bank of America’s big push into Artificial Intelligence (AI) is Erica, a chatbot that provides financial guidance using predictive analytics and cognitive messaging. The Bank of Tokyo’s robots work in branches and communicate in 19 languages utilizing a camera and microphone. Meanwhile, Citibank harnesses the power of robotics to keep money safe through machine learning and detecting fraudulent charges based on spending history.
Customer service no longer requires human on the other side of the chat. Instead, the robot can respond to customer inquiries more accurately and quickly, creating an efficient customer experience. That’s not to say that robots are replacing people entirely. Instead, robots are able to perform tasks that free up bank employees for more innovative work.
The Consumer Benefits of Robotics in the Banking Sector
The financial services industry is more likely to use robotics technology because of its emphasis on customer service, an area that can make or break a financial institution. In particular, Millennials are frustrated by banks because of their perceived difficulty in solving problems, having to stand in long lines and having an inconsistent experience or an unpleasant interaction with an employee.
Robotic process automation helps eliminate many of the primary concerns that consumers have around the banking sector. Robots do not need sleep and customers benefit from 24/7 customer service including the ability to transfer funds and troubleshoot issues. Robotics in the financial sector can resolve in issue without a customer ever having to set foot in a branch or talk on the phone. For example, chatbots can act as a virtual assistant and help customers to reset their passwords. Robo-advisors are even sophisticated enough to help customers make selections for their investment portfolios.
Envestnet | Yodlee and Robotics
At Envestnet | Yodlee, we provide automation capabilities for banks and other financial institutions. Some examples: we help reconcile data for wealth management advisors and offer predictive capabilities via our Financial Wellness Solution . By taking Personal Financial Management tools to the next level with AI, we’re making it easy to provide actionable advice along with personalized financial coaching to consumers young and old. Powered by Artificial Intelligence, this suite of FinApps and APIs lets Financial Service Providers deliver a virtual assistant that helps customers measure their financial data while monitoring their financial health and offering advice on how to improve their finances. Learn more about Yodlee’s Financial Wellness Solution here.
Yodlee also offers Transaction Data Enrichment (TDE), a game-changing solution that takes unclear, fuzzy transaction data and cleans it, offering context so financial service providers can dive deeper into the needs of their customers and ultimately offer better service based on this enriched data. Explore TDE here.
These tools not only benefit financial advisors and banks, but also bring benefits to the end user by helping them visualize their overall financial health via engaging tools that encourage them to spend responsibly. Whatever the future of robotics in banking brings, Envestnet | Yodlee will be here to provide solutions for banks, financial advisors, wealth management professionals and customers alike.