Robotic process automation (RPA) has been creating a buzz for a while in the marketing and financial sectors. In simple terms, it can be defined as a technology based on software where you can find robots emulating human behavior while executing business processes. The software robots perform the same tasks that any human would do while working on an operating system to do his/her job.
But, you may wonder what purpose could RPA have in credit underwriting and the loan process? Well, you would be surprised to know that RPA training is a major player in the loan and credit sector. This is due to RPA solving many of the challenges faced by banks and financial institutions while sanctioning loans.
The Challenges
Credit underwriting is basically the procedure through which financial institutions judge giving credit or a loan to someone after reviewing the risks involved. However, the manual process of underwriting loans is long and tedious. There are many changing regulations, forms that need to be filled, and requirements that have to be met, along with an enormous amount of paperwork.
With so much red tape, a person or business in need of immediate monetary assistance will not be able to get a loan in time. Even when someone meets all the requirements, a simple factual error in the whole process might lead the bank to ask you to apply again.
This can be irritating, to say the least. Employees of the bank who do the paperwork for the customer also spend a large part of their production time performing this time-consuming process. The opportunity cost of this could be really high in the long run as those same employees could have been somewhere more helpful. And, this is where robotic process automation comes into the picture.
The Solution
Using robotic process automation can be very effective in dealing with credit underwriting. There are several solutions and long-term effects that RPA offers in this section:
- Firstly, it automates the entire process. This includes data entry jobs, task assignments, and risk compliance, among others.
- Loan and credit requirements are constantly changing. Automating the system can help customers get the updated regulations.
- RPA also dramatically reduces the time taken to process a loan from the bank. If you have the proper documents and you meet the requirements, then you will get the loan immediately. So, no more waiting around for months to have your loan sanctioned!
- Tailoring RPA to suit the needs of your customer is also possible. This helps build a better loan portal for countless applicants.
- The data and certificates from customers are also stored securely within a database in RPA. That way, one can easily access the said documents whenever required.
- Accuracy in data collection is also very high in RPA. Automation eliminates the chances of almost all the factual errors that are made when a person records them.
- RPA can be an important tool in maintaining compliance with loan requirements, erasing corruption within the process. As a result, there is a much greater possibility of fraud detection while running RPA.
To sum it up, RPA is an important tool and will be even more important in the finance sector with each passing day. Many aspirants who want to have careers after graduation in the credit risk and underwriting sector often look for a certificate course in banking and finance.
For those thinking what after B.Com or M.Com, do not fret. The answer to this question of what after B.Com is going for a reputable certificate course in banking and finance. Pursuing such courses can lead to some great careers after graduation!
