The Banking, Financial Service, and Insurance sector rely heavily on standard processes and systems. However, the BFSI sector is also the one that is more prone to fraud. With new digital initiatives due to Covid-19 or other factors, the risk of fraudulent incidents is only increasing. According to the survey of Deloitte India, the main reasons behind the rise of fraud cases include a surge in customers using non-branch banking systems, the immense remote work models, and the inefficient use of forensic analytical tools to detect and eliminate fraud.
However, many think the solution to this problem lies in leveraging RPA in fraud detection. RPA can associate with traditional fraud prevention processes and provide faster results. Here are some reasons why RPA can prevent and eliminate financial fraud.
Here is how Implementing RPA can Detect and Eliminate Financial Fraud:
Revaluate Present Process:
As you may know, RPA bots can easily be programmed to do any work. Financial institutions and banks can program RPA bots to examine previous and current financial transactions to detect abnormalities and unfamiliar patterns exhibiting fraudulent or illegal activities.
RPA can also work for large-scale businesses. Enforcing RPA in any financial institution requires deep study, related documents, and current process assessment that can provide in-depth insights and detect vulnerable areas.
Eliminate Human Errors:
To err is a human. When working with an overwhelming amount of information, humans can make errors. It can affect the whole operation and lead to unproductive results. However, it is not likely to happen with RPA as it is programmed to do so.
Financial institutions and banks can incorporate RPA into their traditional processes and lessen the human interaction and events of errors. Incorporating RPA can reduce the workload of employees, and they can focus on other tasks.
Improved Trade Monitoring:
Nowadays, finance-related crimes are on the rise due to digitalization. Money laundering, scams, and fraud have become very common. Many government agencies, financial institutions, and companies use automation technologies to tackle these financial crimes.
Combining RPA bots with other automated technologies can sweep every transaction for potential fraud and flag any suspicious transaction. RPA is capable enough to analyze unstructured data. And compared to mutual processes, RPA bots are much faster.
Easy and Automated Threat Detection:
Monitoring a stack of application data and thousands of web pages seems like an impossible task for a human. However, for a bot, this take is something simple that is easy and will take a few minutes. Here are some cases where you can leverage RPA solutions for threat detection.
Product Price Information:
In some cases, competitors of your company can sell your product at lower prices to steal your customers. It can affect the revenue and goodwill of your company. However, you can deal with this problem with RPA bots. RPA bots are apt to aggregate pricing information from different sites and provide you information on whether your products have sold illegally or at low prices.
Copyright infringement is another threat that haunts companies and organizations around the world. RPA bots can help you counter this threat by scanning suspected websites for your company’s confidential or copyrighted information like tenders, trade secrets, patents, etc.
Robotic Process Automation (RPA) is a great solution to tackle financial fraud. Customized robots not only save your time and cost but also helps you to work smarter. You can achieve a competitive advantage against your competitors using RPA bots. Some benefits of using RPA include enhanced service-level agreements and reduced hours of manual work to a few minutes of an automated process.
Therefore, financial institutions and banks should leverage RPA in their fight against financial fraud. Hopefully, you got the information you were looking for and learned some new things about RPA. If you want to learn more about RPA, check out our recent articles. Take care, Peace Out!!!