covid-19 how uipath can help banks & financial institutionsimpact of covid-19 and stimulus...

COVID-19How UiPath can help Banks & Financial Institutions

April 29, 2020

Impact of COVID-19 and Stimulus Efforts on BFSI

April 29, 2020

1) Reduction in Interest Rates for business loans. Differential

benefits for Small/Medium businesses and heavily impacted

sectors.

2) Deferral on Loan Repayments for both retail (home loans,

educations loans) and business loans ranging from 3 to 6 months

3) Reduction/Removal of ATM withdrawal/Online Transaction

charges for customers

Branch Banking Customer Footfall

Reduction

Increase in different types of Insurance

Claims & Withdrawals

High Volatility across Equity, Futures, Forex and underlying

Indices

Increase in Suspicious Transaction,

AML and Fraud

Hit on Banking Services due to

restricted movement of

people & services

Significant increase in activity for

Virtual Trading

The Crisis by Government/Institutions

4) Extension of Tax filing dates, reduction/removal of late payment

charges

5) Removal of restrictions on Savings Accounts Withdrawal and

flexibility/increase in Credit Card Limits

6) Extension of Welfare schemes and Wages guarantee schemes for

employees

BFSI Key Impact Areas

April 29, 2020

Retail Lending/

Mortgages

Business

Lending

Banking and

Servicing

Channels

Capital Market,

Asset & Wealth

Finance and

Accounting

Key Banking IndustryUse CasesResponding toCOVID-19 together

April 29, 2020

Processing of FinancialAssistance Requests in Lending

COVID-19 Challenge

Due to crisis, government/institutions have released schemes to mitigate customer distress. Banks are required to

accommodate requests arising due to it.

• Reduction in interest rates or Loan restructuring

• Fast Loans processing (For corporates from impacted industries)

These requests are out of the planned capacity for BFS institutions.

While adding to the processing effort, in most cases these requests

have to be accommodated in short to medium term.

• Based on respective country/region guideline, retail and corporate

customer can reach out to banks for:

• Deferral of EMI payments for 3/6 months (Mortgages, Education

Loans, Business Loans)

Solution Benefits

EMI deferrals and rate reduction

requests |Unattended

• Fresh documentary verification is not

essential,

• Check for customer profile and historical

behavior

• Make required system entries and

complete request

• Ensure business continuity

during transactions influx

• Customer retention/satisfaction

• Effort reduction in unattended

• scenarios: 80 – 100%

Loan restructuring or Fast Loan

processing,

• For existing customers, low

documentation requirements

• Mix of attended and unattended bots

• Initiate automation with low complexity

• steps in the journey

Industry: Financial Services

April 29, 2020

Loans Portfolio Monitoring basedon Early Warning Indicators

COVID-19 Challenge

Increased requirement of monitoring of Loans portfolios based on indicators like, impacted areas, sectors,

customer segments etc to identify default hotspots.

With economy taking a hit due to the crisis, the Loan book of banks

have started to see an impact. With some industries, sectors being

impacted more then the others, it is important that the banks increase

the monitoring of hotspots. As part of the early warning process, banks

need to daily monitor exposure of loan portfolios to multiple impact

indicators like, regions/geographies severely effected, loan type,

borrower income exposure to impacted sector, current & historical

payment patterns etc. A report with customers likely to be impacted

can help in analysis & decisioning to support customers. A watch-list

can be prepared for ongoing monitoring of the portfolio/accounts

identified.

Solution Benefits

• Bot can be trained to extract data or report from the Loans System based on

portfolio filters like region, loan type, customer risk category.

• Based on data, it can analyze payment patterns across the portfolio and flag any

hotspots.

• For select customers, bot can extract further details like historical payments data,

source of income

• Final report can be prepared and shared with stakeholders

• Credit Risk Mitigation

• Customer Experience & Retention

• Effort Reduction: 80 – 95%

Loan Portfolio monitoring and reporting can be done in an unattended

mode. As part of the flow:


April 29, 2020

Handling Complaints of Transactionsto Fraudulent Accounts

COVID-19 Challenge

Increase in complaints from customers duped by fraudsters into making

payments taking advantage of the panic situation

Reports of fraud linked to the virus have emerged recently. In

some cases it involves purchase of prevention equipment’s,

while in other cases fraudsters tricks customers into making

payments.

Complaints are being made by the customer either through self servicing

channels or through contact centers. Fraud incident has to be recorded post

the request, followed by creating a reference case. Necessary actions like

transaction reversal if possible, and reporting the fraud can be taken.

Solution Benefits

• Suspicious Transactions Handling

• Customer Experience & Retention

• Effort Reduction: 60-90%

A typical solution flow using automation will be as below:

• Fraud request is received by and automation flow is initiated

• Bot creates a new case in Fraud Case Manager for reference

and feedback loop into Financial Crime

• Incident is recorded into the Customer Servicing Platform using case details

• Bot marks the transaction as Fraud in the system and checks for possibility of

transaction reversal

• An incident ID is sent to customer through text or email with summary of

actions taken.


April 29, 2020

Handling inbound SMBapplications for CARES Act

COVID-19 Challenge

Automation of CARES Act and Paycheck Protection Program (PPP)

SBA Loan Processing

The scale of the Paycheck Protection Program, or PPP, is as staggering

asit is unprecedented: A full $350 billion in Paycheck Protection Program

SBA loans is becoming available to all businesses with fewer than 500

employees. And it will be rolled out in a quarter, perhaps

sooner. For COVID-19 in 2020, given the 50-fold increase

banks will have to handle 800K loans to be processed over

the next two or three months.

Solution Benefits

A typical solution flow using automation will be as below:

1. Process Application Forms: Extract the inbound SBA forms and automatically

move that data into any core systems

2. Eligibility check and Underwriting: The SBA criteria for approving a Paycheck

Protection Program loan are simple, it is typically approved without additional

underwriting.

3. Sending “Loan Guaranty Form” to SBA: take the approved PPP loan data in

your core system and input it into the SBA data portal automatically.

• Fastest to market

• Instant capacity expansion

• Ideal for fragmented technology

landscape

• Accuracy in SBA filings


April 29, 2020

Automated reconciliation andreversal of waivers

COVID-19 Challenge

Due to government directive, banks have to take actions

on fees being charged

Some of the areas where fees charges need to be waived off are:

• ATM withdrawal charges

• Online transaction charges

• Charges for breach of Saving account minimum deposits

Solution Benefits

• Reconciliation of the settlement account/s is done for the charges levied by the

bank (Issuer Bank)

• Customer accounts are identified where charges are incorrectly levied

• Request are generated in respective systems for reversal of charges

• Customer is notified of charge reversal

• Ensure business continuity during

the influx of transactions

• Maintain a high level of

• customer satisfaction

• Effort reduction: 80 – 100%

In a normal scenario, banks systems levy these charges if any of

these events happen. For waivers, banks may have to reconcile and

reverse these charges. In many cases existing systems may not

allow changes to be applied directly.

These scenarios can be automated using Unattended automation

with exception handling.

Typically:


April 29, 2020

Customer Servicing throughVirtual Channels

COVID-19 Challenge

Increase is customer queries and requests received through Self Servicing Channels (Chatbot, Online) and

through Contact Centers.

Due to distress and also as per directives from the governing bodies,

banks are expected to accommodate requests for:

• Charge Reversals

• Late Payment Fee Waiver

• Deferral of EMIs

• In a normal scenario, an agent would look at the historical

payment pattern and past reversals or benefits given. Based

on this analysis, customer request is fulfilled.

Solution Benefits

Requests through Online or Chat interfaces | Unattended

• Take the input request and

• Create systemic entries and logs in required systems

Requests through Contact Center | Attended

• Agent assist through bots

• Agents take the request and initiates workflow

• Remaining steps can be performed by the Bot

• Finally agent provides acknowledgement to the customer

• Ensure business continuity during the

influx of transactions

• Maintain a high level of customer satisfaction

• Average AHT saves: 25-40%



April 29, 2020

Appointment provisioning forBranch Visits

COVID-19 Challenge


During and post lockdown period, in order to maintain social

distancing, banks should restrict number of customer

visiting the branch:

The appointments provisioning will ensure customer safety. Appointment

can be given through

• Telephone Banking

• Online Channels

• As a fallout for request which were not resolved

through virtual/self servicing channels

During the current situation, this can be particularly useful

for the elderly, who can be given a preferential slot.

Solution Benefits

• Input can be received by integration with IVR, Online Channels in the event of a

fallout, requests can be created.

• Based on the customer details, location, age, type of service required, option of

branch and visiting hours can be given

• Post customer selection, record of visit can be made

• Branch Manager can be notified of visits during start/end of day

• Record of all customer visits can be maintained

• Ensure customer safety

• Maintain a high level of

customer satisfaction

• Streamlining of number of

customers visiting at a time

• Optimizing branch staff utilization


Appointment provisioning can be done though Unattended

automation. As part of the flow:

April 29, 2020

Handling Increased Volumeof Client Trade Bookings

COVID-19 Challenge

Sales Trading desks have experienced an influx of trading volumes

across asset classes due to upheaval in global markets

• Prior to implementing automation, sales traders at a Top US Bank

had to manually enter swaps trades done with clients over the phone

• The typical swap trade required 6-18 manual bookings (based on

client instruction) across 3 different applications

Solution Benefits

Workflow:

• Sales trader executes client trade over the phone and logs details into

shared spreadsheet

• Robot picks up details and books each leg of swap trade across 3

different applications

• Robot then submits trades for trade reporting

• 100% of process automated after initial

entry

• 90% reduction in booking errors that

led to settlement issues

• More time spent on revenue generating

client outreach

• Sales traders spent a considerable amount of time booking

trades instead of calling clients or monitoring markets

• Original process became a burden on the business, especially

during periods of increased volume.

Automation allows sales traders to manage surge in trade

volumes without sacrificing client experience

Industry: Capital Markets

April 29, 2020

Processing Spikes in TradeAllocations

COVID-19 Challenge

Middle office teams may struggle to provide timely client

service due to increased trading volumes

• Team of 4 was tasked with manually processing allocations due to

limited straight through processing (STP) enhancements

• Team processed ~300 allocations/day, spending 2-5 min per

allocation

Solution Benefits

Workflow:

• The robot continuously monitors Oasys & MarketAxess for trade

allocations sent from client

• The robot allocates trade in Broadridge application based on

client instructions

• The robot captures details of the allocation and sends to middle

office team for audit trail purposes

• Straight through processing achieved

on +80% of process

• 100% accuracy on STP portion

• Quicker turnaround times on picking

up client allocations

• Improved client experience

• Process was subject to manual keystroke errors & delays

based on volume spikes

• Errors & delays led to a poor client experience and was

identified as one of the biggest risks to the business

Automated process can efficiently handle spikes in number of

allocations in any given time period


April 29, 2020

Market Volatility IncreasingRisk Across Operations

COVID-19 Challenge

Extraordinary periods of extreme market volatility

reemphasizes need for accurate trading positions

• Operations team performed daily reconciliation between position

blotters (front end) and stock record (back end)

• Process was critical to ensuring accuracy of trading positions and

identifying discrepancies that could negatively impact p/l.

Solution Benefits

• The robot downloads files and prepares reconciliation reports prior to ops

team coming into the office

• The robot remediates low risk exception items (e.g. missing security

identifiers)

• Medium & high risk exception items are reviewed and remedied by human

in the loop

• Reconciliations completed prior to the

start of trading increased to 95%

• Significant reduction of risk from

inaccurate trading positions

• Given the importance of the data, reconciliations were required

to be completed prior to markets opening

• Completion of the recon process before market open became

very difficult during periods of with heavy trading volumes

• Additionally, inaccuracy of positions posed a greater risk to the

firm during spikes in market volatility

Automation helps ops team handle any increased workload and

ensure position accuracy prior to the start of trading


April 29, 2020

Paycheck Protection Program SBA Loans

UiPath Accelerator Demo

Watch the Demo

Let's Respond to COVID-19 Together.

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https://www.youtube.com/watch?reload=9&v=BDfD7E4Ny_Y&feature=youtu.be

covid-19 how uipath can help banks & financial institutionsimpact of covid-19 and stimulus...

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