Credit card processing automation using RPA technology
The payment card industry is anticipated to grow substantially in the forthcoming years, as numerous countries promote cashless economies. Nevertheless, the present industry faces unique challenges, which are hindering its growth.
The continuously growing credit industry has become a burden for financial institutions that still depend on manual procedures. The conventional credit card processing method involves several steps, from validating customer information to approving the credit card, and requires various checks to be carried out, resulting in a process that takes several weeks. Consequently, the system has become ineffective, leading to a higher likelihood of errors and fraudulent activities. This outcome is reasonable, given that financial institutions manage numerous card applications daily.
These can be tackled by implementing leading technologies such as RPA, and AI that can streamline the entire credit card processing process, leading to increased customer satisfaction.
Here are some instances of how RPA can automate credit card processes
- Application Processing
When a customer applies for a credit card, RPA can extract the data from the application and enter it into the bank's systems. This can include data such as the customer's name, address, income, and credit history. RPA can also verify the information by cross-checking it with other databases, such as credit bureaus.
- Credit Scoring
It can analyze a customer's credit score by automatically pulling data from credit bureaus and other sources. Based on the data, RPA can decide whether to approve or decline the application. RPA can also calculate the credit limit and interest rate based on the customer's credit score.
- Fraud Detection
It can monitor credit card transactions in real-time to detect fraudulent activity. For example, if a customer makes a large purchase in a foreign country, RPA can flag the transaction as potentially fraudulent and alert the bank's fraud detection team.
- Payment Processing
It can automate payment processing for credit card transactions. This can include tasks such as generating invoices, processing payments and reconciling accounts. RPA can also automate the process of sending payment reminders and following up with customers who have overdue payments.
- Customer Service
RPA can automate customer service tasks such as responding to inquiries, resolving disputes, and updating account information. This can include tasks such as updating a customer's mailing address or responding to a dispute over a transaction.
- Overall, by automating all manual and repetitive tasks in the credit card process, RPA enables banks to accelerate application processing, minimize errors, and enhance customer satisfaction. Furthermore, RPA's automation of these tasks can liberate staff to tackle more intricate tasks and enhance customer service.