10 Jan, 2021 | Blogs
A few years ago, many countries were inching towards a cashless economy. However, this process was expedited as the pandemic wreaked havoc across the world last year, and contactless payments became the new normal. The unprecedented spike in online and cashless transactions propelled the payment card industry, which despite the lockdown, was set to grow at a compound annual growth rate (CAGR) of 0.1% from $721.9 billion in 2019 to $722.4 billion in 2020 (The Business Research Company). Moreover, the industry is expected to recover and reach $909.1 billion in 2023, growing at a CAGR of 9%. While this is a promising sign for the payment card industry, the question still lingers: is the industry ready for such a massive demand? The answer, unfortunately, is no! The existing payment industry is crippled with its own challenges, with manual processes being the frontrunner. In this article, we will explain why it is time for automating credit card processing and how it is important for providing an unmatched customer experience.
The Present Scenario in Credit Card Processing
The use of credit and debit cards has gained popularity, with an average consumer using more than one card. A growing section of society prefers carrying plastic money rather than fiat currency. Add to this, online payments have surpassed retail ones by leaps and bounds, as consumers are incentivized with various offers and discounts.
These developments have put enormous pressure on the financial institutions, which still depend upon manual processes. Processing credit cards traditionally can take weeks and involve several processes, including validating KYC forms and approving the card. Manual processes make the entire system inefficient and more prone to errors and fraud. That’s because handling as many as 500,000 credit card applications a day can be stressful for even the most seasoned human workforce.
Automating Credit Card Processing With Robotic Process Automation
Manually processing a large number of credit card applications is no one’s dream job. That is where software robots can help. The introduction of robotic process automation (RPA) in banks and other financial institutions has provided respite to the human workforce, who can do away with such mind-numbing, monotonous work and focus on more strategic projects.
Learn more about RPA in Finance
For those unfamiliar with RPA, RPA is a software bot that uses technologies such as artificial intelligence (AI) and machine learning capabilities to easily handle a high volume of repeatable tasks without any errors. When used for credit card processing, RPA can expedite the entire process and reduce long waiting periods. Long waiting time not only costs a lot of money to financial institutions but can increase customer dissatisfaction. However, by automating credit card processing with RPA, banks can issue a credit card to customers within days or even hours.
An RPA bot can interact with various systems at once, read the document, validate the necessary information, highlight exceptions, conduct background checks, and automatically decide whether to approve or disapprove the credit card application based on some predefined rules. It allows banks to:
- Reduce costs
- Streamline operations
- Keep employees motivated
- Digitize data
- Reduce business response time
- Provide better customer service
Also read: credit card reconciliation and RPA
Let Nuummite Consulting Help
The importance of RPA cannot be underestimated. But what is even more important is the right way to implement this technology. That is why several major players in the banking and financial services trust Nuummite Consulting as their favorite implementation partner. We not only identify the right task for automation but also re-engineer the entire process to make it more efficient. We help you reduce cost and prove ROI within weeks of implementing the technology.
Next Steps
Contact us today or speak to our RPA experts to make the most out of automation and boost efficiency, eliminate errors and increase productivity of your workforce.