Application of Robotic Process Automation in the Loan-Sanctioning Process for a Smart Bank Office

Abstract

The banking sector is the main center of all economic activities. The Indian economy is the world’s sixth-largest economy by nominal GDP (gross domestic production) and third-largest by purchasing power parity (PPP). Changes in the regulations of the banking sector affect the entire economy. The banking sector is treated as one of the most essential service sectors. Banks are the indicator of the economy, which shows the flow, management, and improvement of asset quality. Nowadays, NPA is becoming a major concern for the banks to maintain their asset quality, which is posing a question mark on the operating, managerial, and investment activities. In this technical era, robotic process automation (RPA) is a necessity for each sector of the Indian economy. RPA is evolving as the most advanced technology in this competitive environment. The primary development of RPA started after the 1990s and emerged in the earlier 2000s. The term RPA had three to four predecessors: artificial intelligence, workflow automation, screen scraping, and desktop macros. The level of working capacity and accuracy of robots is unmatched compared with the traditional method of working. RPA is growing to be one of the leading technologies that will set a standard for positive business outcomes. The best part of RPA technology is that organizations and businesses can adopt this technology without having programming knowledge. In this COVID-19 pandemic, RPA is playing a pivotal role in keeping business processes running without any interruption. The implementation of RPA helps to make the business processes more effective, error-free, efficient, and with reduced operating costs. The banking sector found the RPA technique as a way to increase their working efficiency. Through RPA, most of the banking tasks can be automated so that bankers can use their efficiency in other important activities. It enables banks to reduce their operational and service cost, which, in turn, increases their profitability and promotes financial stability. In the banking sector, the RPA technique helps bankers to automate their mundane tasks so that they can concentrate on more valuable activities. RPA has been implemented in operating activities in the major banks, but still, there are lots of areas that are untouched by this technique. RPA can play a significant role in the recovery of present NPA in controlling future NPA. The main objective of this chapter is to explore the benefits of RPA implementation on the loan process to control the present and future NPA. In this chapter, a model has been proposed for how RPA can implement on loan disbursal process to control NPA.