Revolutionizing the Banking Industry with Robotic Process Automation (RPA)

The banking industry has always been at the forefront of technological advancements, aiming to improve efficiency, accuracy, and customer experience. Robotic Process Automation (RPA) has become a game-changer for the banking industry in recent years. RPA streamlines processes while also enabling banks to concentrate on strategic decision-making and improved customer service by automating repetitive and rule-based procedures. In this article, we'll examine how RPA is transforming conventional banking procedures and the banking industry as a whole.

 RPA in Banking

Robotic process automation (RPA) is a technique that uses software "bots" to conduct repetitive, rule-based tasks by mimicking human behavior. Like human operators, these bots can connect with programs, retrieve and process data, and carry out transactions. However, they do it more accurately and efficiently. Customer onboarding, data entry, account maintenance, transaction processing, compliance checks, and other activities are just a few of the ones that the banking industry uses RPA for.

 Benefits :

 

Improved Efficiency: RPA enables banks to drastically cut down on manual work, resulting in quicker and more precise task completion. Bots are always active and improve turnaround times for crucial procedures.

Cost savings: Banks can save a significant amount of money over time by automating repetitive processes to cut down on operational costs associated with manual labor.

Improved Accuracy and Compliance: RPA lowers the chance of human errors, assuring consistent and legal job execution—essential in the heavily regulated banking sector.

Seamless Integration with Legacy Systems: RPA can be integrated with existing IT infrastructure without requiring major system overhauls. This enables banks to leverage automation without disrupting their current processes.

Enhanced Customer Experience: By automating back-end processes, banks can free up resources to focus on improving customer service, resulting in a better overall experience for clients.

  Use Cases of RPA in Banking

Customer Onboarding:
RPA can streamline the account opening process by automating document verification, data entry, and compliance checks, reducing the time taken to onboard new customers.

Account Reconciliation:
To ensure the authenticity of financial data, RPA bots can automatically reconcile the accounts as well as find discrepancies and alert suspected fraudulent actions

.
Loan Processing:
By automatically evaluating applicant data, running credit checks, and producing loan documentation, RPA helps speed up the processing of loan applications.

Payment Processing:
RPA bots can handle payment transactions, monitor transaction statuses, and send notifications to customers, reducing the risk of payment delays.

Compliance and Risk Management:
By automating compliance checks, KYC (Know Your Customer) processes, and Anti-Money Laundering (AML) operations, RPA can help banks stay in compliance with rules.

 Challenges :

To successfully integrate RPA, staff must receive the necessary training. Cultural and organizational adjustments may also be necessary.

Data Security: As RPA involves handling sensitive customer data, ensuring data security and privacy is of paramount importance. Banks must employ robust security measures to safeguard against potential breaches.

Process Complexity: Some banking processes might be highly complex, involving multiple systems and decision-making. Identifying and automating such processes can be a challenge.

For the banking sector, robotic process automation is a game-changer since it provides unmatched efficiency, money savings, and a better client experience. 

By leveraging RPA to automate repetitive and rule-based tasks, banks can shift their focus to strategic initiatives, drive innovation, and maintain a competitive edge in the ever-evolving financial landscape.

As technology continues to advance, RPA will undoubtedly play a pivotal role in shaping the future of banking.

 

 

Blog by 

- Shardul Deogiri

Assistant Vice President

Credit Suisse Bank

Wealth Management Operations

shardul.deogiri@gmail.com

 

 

 

 

 

Role of Financial Calculators in Wealth Planning

 

Financial planning refers to planning the finances that we need to prioritize over the others and save for future expenses. Financial planning has become a very significant part of our lives, probably due to the ever-increasing prices of essential commodities, real estate as well as lifestyle and travel expenses. All these expenses need to be constantly checked and planned for, to avoid going bankrupt.

But how does one estimate the exact expenses over the years that we may need to incur? There are many needs for different age groups. Let us reflect on each of them one by one.

The younger generation form the apex of all expenses as they are developing and harnessing new skills in life. Gen Z as they are referred to, normally falls in age group between 11 years to 26 years. Due to the availability of resources easily, this generation is very actively participating in income generation as early as the age of 11 years by way of social media, video sharing on you tube or music and dance competitions, Olympiads prize winning.etc. They therefore need to invest their earned money to gain stability and assured financial backup at the times they decide to take a break or simply run out of money due to adverse circumstances. Getting high salary package at younger age is also a dominant reason to plan and save your earnings for assured future and provide for emergency or layoffs etc.

Millennials referred to people in age group of 27-years to 42 years, are normally in process of planning for goals like career advancement, travel expenses, House property investment etc.  

Gen-X refer to the people in age group of 43 to 58 years. This age group, we assume, has accumulated a stable position financially, and have savings set aside for emergencies and medications. Their financial needs vary too, with age. They might be planning for retirement corpus and medical and insurance needs which provide safety cover for everyone.

While Boomers mainly age group 59 years and 77 years may have higher medical expenses and it is time for them to reap the benefits of their financial planning. The retirement corpus gives regular income, and they may need to pay for increasing property and personal maintenance and medical bills.

Questions to deliberate upon……….

1.     But how does one estimate the amount to save for the future?

2.     What things does one need to know about his/her financial status?

3.     Can I estimate my future earnings?

4.  What are the interest rates offered by banks on savings deposit, as against mutual funds and other investments returns rate?

These questions will surely sound an alarm about your financial status, while calculating specific needs and translating them in required amounts, sounds too complex.

This is precisely the task for Calculators! We use them all the time!

There are numerous tools available on the internet to help you along the financial planning way. One important tool is the financial calculators.

Financial calculators are a step ahead that help you to exactly put the amounts in different boxes and predict your financial needs accurately and extract a certain amount you need to save or invest or earn.

You will be surprised with the variety of financial calculators available online.

For example, If I wish to calculate my retirement corpus, I need the Retirement calculator.

Likewise, there are Calculators for different financial needs. We can club these into following broad headings:

·       ➤Financial Calculators:

Loan Calculator, Annuity Calculator, PPF calculator, Gratuity calculator, Compound interest calculator, Credit card payoff calculator, maturity amount calculator, interest calculator..etc

These calculators estimate the interest, loan or specific financial formula of say compound interest or simple interest on savings.

·       ➤ Goals Calculator:

Retirement Calculator: How much amount should I save to get rs. 1 crore corpus after retirement?

Education Loan Calculator: How much loan amount should I apply for if I want to do an MBA? So here you might be planning for a specific College MBA. Then you must know the fees, travel expenses, Mess and Hostel expenses if required, daily expenses, etc. to arrive at an amount. The Education Calculator may take in account the inflation rate, and interest rate on Education loan and amount of repayment period you may need to fix for repaying installments.

Insurance Calculator: How much amount is appropriate for my health insurance, if I want to Insure myself? If I have a major disease, or plan for a major surgery etc. that expenses need to be input. The Insurance calculator will determine your insurance needs based on your medical expenses in last one year or last five years. It should also consider the maturity amount you plan to insure for fulfills your medical needs.

Marriage Expenses Calculator: What scale of marriage do I plan? Whether destination wedding that may cost much more than a simple wedding or a court marriage and reception that may save lakhs of rupees. A calculator will therefore ask for specific amounts like marriage hall charges, destination wedding or event management charges, travel charges, clothes and wedding card charges..etc. After inputting them you can adjust them to suit your requirements, thus giving an exact idea of the expenses you are about to make.

 

·        ➤Investments Calculators:

Real Estate Calculator: Based on the term of investment and capital availability this calculator will accurately estimate whether you should invest in land, house, shop/office and returns thereby.

Earnings/Salary Calculator: This calculator will estimate the amount of salary based on your lifestyle expenses and help you assess your financial status.

Mutual Funds Calculator: It will help you to get returns based on number of years you desire to lock your amount and invest in boost fund or growth fund or regular income fund. Few calculators also give the riskometer or the ingrained risk with each of the types of mutual funds.

Tax Calculator :  It will help you sum-up all your taxes like house property tax, road tax, income tax, GST, to help you analyse how much amount is expended each month on taxes only.

·         ➤ ADVICE:

Various trading platforms and demat accounts provide accurate calculators. It is advisable to use the calculators provided by your bank account and demat/trading services provider to get accurate estimate of your past present and future finances. Also, it is important to note here that calculators give a tentative amount of result so that we can get an estimate. Actual amount may differ.

A list of online calculators with link should add up to the excitement of trying one yourself.  So just get, set, Go….!

1.  

1.       https://incometaxindia.gov.in/pages/tools/tax-calculator.aspx

2.       https://cleartax.in/s/sip-calculator

3.       https://www.etmoney.com/tools-and-calculators/sip-calculator

4.       https://upstox.com/calculator/brokerage-calculator/

5.       https://www.hdfc.com/home-loan-emi-calculator

6.       https://groww.in/calculators

7.       https://sbi.co.in/web/personal-banking/loans/calculators

8.       https://upstox.com/calculator/sip-calculator/

9.       https://www.hdfclife.com/financial-tools-calculators/compound-interest-calculator

10.   https://www.investonline.in/financial-calculators/wedding-planning-calculator

11.   https://www.bankbazaar.com/calculators.html

12.   https://play.google.com/store/apps/details?id=com.financial.calculator&hl=en_US&pli=1

 --Prof. Manasi Patil

Indira Institute of Management Pune.

Chief Librarian (Unity/Tapasya Campus)

Email- manasi.pawar@indiraiimp.edu.in

A Day to Take Control of Your Finances- National Financial Awareness Day (14th August)

 

"The more you learn about money, the more you'll have." - Robert Kiyosaki

Robert Kiyosaki narrates the tale of his two fathers—his biological father and the father of his best friend—in his book Rich Dad, Poor Dad. His biological father was an accountant with a master's degree. He thought that getting a good job and working hard were the keys to financial success. But the self-made millionaire father of his closest friend thought that the secret to financial success was to learn how to be financially literate and make money work for you.

The Rich Dad Poor Dad tale serves as a potent reminder of the value of financial literacy. It demonstrates that everyone, regardless of background or educational level, can become financially successful provided they have the necessary knowledge and abilities.

Understanding and controlling your finances are two characteristics of financial awareness. Everyone should care about it, regardless of their financial condition or salary. It covers things like understanding how to set aside money for savings, invest, and safeguard your possessions. The process of learning about financial literacy is known as financial education.

National Financial Awareness Day, which is observed on August 14, aims to promote financial education and literacy. The subject for this year is "Taking Control of Your Finances," which is appropriate given the state of the economy.

Financial literacy is crucial for many reasons. First of all, it might enable you to make wiser financial choices. Understanding how money functions can help you make decisions that will enable you to achieve your financial objectives. Second, financial knowledge can aid in preventing financial issues. You're less likely to overspend or accumulate debt if you know how to set up a budget and save money. Third, having financial literacy can aid in wealth accumulation. Your assets might increase over time if you invest your money effectively.

India now has a mixed level of financial understanding. One the one hand, there has been an increase in recent years in the importance of financial literacy. This can be attributed in part to the government's initiatives to encourage financial literacy as well as the growing accessibility of financial resources and information.

However, India still suffers from a severe lack of financial knowledge. Only 25% of Indians possess fundamental financial literacy abilities, according to a 2017 poll by the National Financial Literacy Mission. The great majority of Indians are therefore ill-equipped to make wise financial decisions.

 

The government has started a number of measures to promote financial education in order to address this issue. These include the National Financial Literacy Mission, which offers adult and youth financial education programs. A variety of websites and apps for financial literacy have also been released by the government. Numerous non-profit groups are working to advance financial literacy in India in addition to government programs. These groups provide a range of financial education courses, including online classes, workshops, and conferences.

One such effort was held by Indira Global Business School. In 2023, IGBS organized an event on financial awareness named ARTHABODH. The event was aimed at raising awareness of the importance of financial literacy and providing participants with the insights of Government budget proposed. ARTHABODH was a two-day event that featured well-read speaker and a debate competition on the budget proposed with the topic: “Is this a common man’s budget?” The event was a success, and it helped to raise awareness of the importance of financial literacy among the students.

There are many resources accessible to you if you're interested in learning more about financial literacy. You might contact one of the many nonprofit organizations that provide financial education programs or go to the government's National Financial Literacy Mission website.

The importance of financial literacy is emphasized on National Financial Awareness Day. You may improve your financial decisions and create a better financial future for yourself by taking the time to educate yourself about your finances.

The following advice can help you observe National Financial Awareness Day:

• Test your understanding of financial literacy by taking a quiz.

• Check out a publication or article about financial planning.

• Participate in a training or seminar on financial education.

• Speak with a financial consultant.

• Make a list of your financial objectives.

• Commence saving money.

• Put your cash to work.

• Guard your assets.

You may take charge of your finances and enhance your financial wellbeing by following these steps.

What are you still holding out for? start now!

I hope this is useful.

                                                             

Blog by: SURUCHI VISHNU (MBA 1^st year)

Email- Suruchi.Vishnu@indiragbs.edu.in    

 

 

 

 

Green Investing in the Stock Market: A Sustainable Future

 

As the world faces the challenges of climate change and environmental degradation, there is an increasing awareness of the importance of sustainable practices and responsible investment. Green investing, also known as sustainable or ethical investing, has emerged as a viable way to support companies committed to environmental stewardship while generating positive financial returns.

Green investing involves allocating capital to companies that demonstrate a strong commitment to environmental sustainability, social responsibility, and ethical governance. Investors in green stocks consider not only financial performance but also the impact a company has on the environment and society. This approach aims to encourage positive change by rewarding companies that adopt eco-friendly practices and ethical principles.

The Growth of Green Investing

Over the past decade, green investing has experienced significant growth. As public awareness of environmental issues and corporate social responsibility has grown, so has the demand for sustainable investment opportunities. Many companies are now actively integrating sustainable practices into their business strategies, making them attractive prospects for green investors.

Environmental, Social, and Governance (ESG) Factors

ESG factors serve as the guiding principles for green investing. Environmental criteria evaluate a company's ecological impact, such as carbon emissions, waste management, and resource consumption. Social criteria assess a company's relationships with employees, customers, suppliers, and communities, including labour practices and community engagement. Governance criteria look at the company's internal structure, including transparency, board independence, and executive compensation. Integrating these factors into investment decisions ensures a comprehensive evaluation of a company's sustainability performance.

The Advantages of Green Investing

1. Positive Impact: Green investing allows individuals to contribute to positive environmental and social changes. By supporting companies that adopt sustainable practices, investors can promote a cleaner and greener future.
2. Long-Term Returns: Sustainable companies often demonstrate resilience and long-term viability due to their forward-thinking strategies. As societal preferences shift towards environmentally responsible products and services, these companies may experience increased demand, leading to potential long-term financial gains.
3. Risk Mitigation: Green investors may avoid companies associated with environmentally harmful practices, reducing exposure to potential financial risks and controversies.
4. Alignment with Personal Values: Green investing enables investors to align their financial goals with their ethical and environmental values, creating a sense of purpose and fulfilment.
   

Challenges and Considerations

While green investing offers numerous benefits, it also comes with challenges. Investors should be aware of the following considerations:

1. Limited Green Investment Opportunities: The pool of sustainable companies might be smaller compared to the entire stock market, limiting diversification options.
   
2. Performance Concerns: Some investors worry that prioritizing ESG factors may result in lower financial returns, although evidence increasingly suggests that ESG integration does not necessarily lead to underperformance.
3. ESG Data Quality: Evaluating companies' sustainability performance relies on the availability and accuracy of ESG data, which can vary in quality and consistency.

Green investing empowers individuals to make a positive impact on the world while achieving financial goals. As the importance of sustainability continues to grow, green investments have the potential to drive positive change in corporate practices, promoting a more environmentally friendly and socially responsible world. By incorporating ESG factors into investment decisions, we can contribute to building a sustainable future for generations to come.

Top of Form

 

Blog By-

Prof. Chhaya Vanjare

Dr. D.Y. Patil Vidyapeeth Pimpri, Pune 
Email- chhayavanjare83@gmail.com.