Example: Customer Onboarding in a Bank
In banking, customer onboarding is a critical process. A new customer needs to be taken through multiple steps, from initial data collection, verification, credit checks, to finally account creation and welcome kit dispatch. If done manually, this process can take days, if not weeks. Plus, manual processes are prone to errors and inconsistencies.
Current Scenario (Manual Process):
- Duration: Takes 5-7 days for the entire process.
- Errors: 2% of applications have errors leading to account setup delays or compliance issues.
- Manpower: Requires 4 full-time employees to process 100 applications a day.
Process Discovery for RPA:
- Data Collection: The process discovery tool monitors how the bank's employees manage onboarding across all systems, including customer relationship management (CRM) tools, verification systems, email communications, etc.
- Visualization: Creates a visual representation of the onboarding process, highlighting time-consuming steps, manual data entries, waiting times, and more.
- Bottleneck Identification: The tool reveals that the manual data entry into multiple systems and manual verification steps are the most time-consuming.
- Highlight Repetitive Tasks: It identifies tasks like data entry into CRM, sending emails for document collection, and credit check initiations as highly repetitive.
Solution with RPA:
- Automated Data Entry: An RPA bot can input the customer's data into all necessary systems, removing duplicate efforts and ensuring accuracy.
- Instant Verification: Bots can instantly verify customer details with external databases, like credit score agencies, significantly speeding up the process.
- Automated Communication: RPA can send automated emails or messages to customers for additional document requirements or to update them on their application status.
- Consistent Compliance: With RPA, every onboarding follows the exact process ensuring compliance with bank policies and regulations.
Benefit Estimation Post RPA:
- Duration: The process is reduced from 5-7 days to 1-2 days.
- Errors: Errors are reduced to 0.2% due to the elimination of manual data entry.
- Manpower: Only 1 employee is needed for oversight and exception handling. The rest can be redeployed to other value-added tasks.
- Customer Satisfaction: Faster onboarding results in a better customer experience, which can lead to positive reviews and referrals.
- Cost Saving: Reduction in required manpower translates to direct salary savings.
- Revenue Increase: Faster onboarding means the bank can bring in revenue from new customers more quickly.
- Compliance Fines Avoided: Accurate and consistent onboarding reduces the risk of regulatory fines.
By using process discovery, the bank gets a clear understanding of its onboarding process inefficiencies. Implementing RPA based on these insights leads to faster, more accurate, and efficient onboarding, resulting in both tangible and intangible benefits.