Managing individual bank accounts, especially inactive ones or those posing high operational risks, is a challenge for financial institutions. The primary hurdle is the considerable cost associated with these activities. Maintaining inactive accounts requires allocating significant resources into services that ultimately yield no returns. Furthermore, when dealing with high-risk accounts, banks need to invest in actions to protect their assets and reputation while avoiding financial losses.
When dealing with a high volume of accounts to manage, the operational cost for maintenance or problem resolution becomes even higher. This was the impasse faced by a major Brazilian bank, which engaged act digital to develop a tailored solution. The project, initiated in 2023 and extending till 2025, involves adopting automated robots to perform migration and closure of a large number of inactive or high-risk accounts.
Digitizing the analysis of these processes makes the solution more efficient and accurate. Through the employed technology, the bank is mitigating risks and costs while simultaneously enhancing its revenues.
Client: Specialist Bank in Financial Solutions
Operating in the financial market for over 90 years, the institution that contracted act digital for the project aimed at migration and closure of personal accounts is one of Brazil’s major banks. A pioneer in providing and democratizing consigned credit in the country, the company holds the largest network of banking correspondents nationwide.
The institution has increasingly focused on digitalization, both in solutions for clients and internal projects. Amidst digital transformation, the adoption of automated robots has proven to be an effective path to mitigate risks and costs related to managing personal accounts.
Challenge: Reducing Costs and Risks with Inactive Bank Accounts
The problem to be solved involves the excessive cost of maintaining personal accounts that are inactive or pose high risks to the bank. The situation becomes more challenging due to the high number of accounts to be analyzed and managed.
In order to achieve an efficient solution for the migration and closure of inactive and/or high-risk bank accounts, the bank set several objectives for the project developed by act digital — initiated in 2023 and extending till 2025:
- Migration of payment accounts to regular accounts.
- Gain provided by increased profitability for the bank.
- Closure of high-risk accounts for fraud.
- Closure of inactive accounts that do not generate profit for the bank.
- Cost savings with processing and database estimated at R$ 2.4 million annually.
- Migration and reactivation of accounts with potential and low risk.
By achieving these objectives, it is expected that the institution will have a financial return of R$ 23 million in 2023, potentially reaching R$ 55 million by 2025.
Solution: Automation Robots
In order to provide a precise and efficient solution for managing personal accounts, the act digital team developed automation robots programmed to execute the migration and closure of accounts in large volumes (back end) with an interface (front end) designed for internal use by the areas responsible for operating the system during the project.
The implemented solution comprises three stages, essential to define processes according to established criteria and flows.
Stage 1
- Transform payment accounts, which have the profile and potential to adopt financial services, into regular checking accounts.
- Make available the balances of closed accounts with amounts to be retrieved to the Central Bank’s Receivables System.
Stage 2
- Migrate payment accounts with balances to regular checking accounts.
- Activate new personal accounts in the form of regular checking accounts.
Stage 3
- Close inactive accounts without a balance.
- Close accounts considered high-risk of the non-commercial interest type.
Methodology
During the solution’s development and implementation, the act digital team facilitated connection among all stakeholders and the technology area to align the entire project. At this stage, weekly checkpoints were organized to monitor the action plan.
Once the development was completed, the act digital team established daily agendas and monthly follow-ups to verify and present the results. Specific meetings with each area involved in the processes were also scheduled to guide the internal audience on the robots’ functionality. Infrastructure-wise, monitoring indices were created to track mass migrations and closures.
Technology
From alignment with the client and work teams to the solution’s implementation, different technological tools were adopted to serve specific purposes throughout the project. These include:
- Tools for communication, presentations, and planning – Microsoft PowerPoint, Microsoft Excel, and Microsoft Teams
- Activity planning for development – Jira
- Programming language used – .NET
- Database – act digital’s partner vendor
- Designing the entire robot architecture – Lucidchart
- Designing the flow for closure and migration of accounts – Microsoft Visio
- Development methodology used – Scrum
Results: Efficiency and Scale Gain
The automated robots developed by the act digital team were deployed in 2023, and the project will continue until 2025. In the first year, the following results were achieved:
- Complete interface for closing accounts both individually and in batches.
- 6.2 million accounts migrated (the project’s goal is 8 million by the conclusion).
- 2.4 million accounts closed out of a total of 3 million projected by the end of the project.
- 248,000 accounts closed promptly from “offending squares.”
- Revenue of R$ 17 million obtained out of a total of R$ 23 million projected by completion.
- Savings of R$ 2.1 million in the first months (forecasted annual savings of R$ 2.4 million). All performance achieved to date will be expanded over the next two years during the project’s continuation.
How We Can Help Your Company
In the financial segment, precision, security, and agility are essential elements for both operational areas and management. That’s why act digital operates with a specialized and multidisciplinary team that understands the sector’s challenges and can offer customized solutions capable of meeting each institution’s peculiarities and demands.
Amidst the accelerated process of digital transformation, technological adoption is a central point to enhance the competitive capacity of financial institutions. act digital can assist your company by delivering solutions that combine the most advanced market technologies, agile processes, and customization. This way, we maximize the results to be achieved and the technological evolution of your operations.
We facilitate the transition of operations from any institution to the virtual world, ensuring the comprehensive protection of all transactions and information. Additionally, we specialize in data management, driving the adoption of a data-driven culture throughout the organization and strengthening analytical intelligence in all aspects of the business.
Our services encompass a wide variety of solutions, ranging from developing customized platforms to modernizing legacy systems, enhancing data and operational security, and creating innovative APIs and applications.
The use of automation robots has the potential to guarantee greater agility, security, and efficiency to operations conducted by financial institutions. This is just one of the main trends in the sector. Interested in exploring other resources that can enhance your company’s competitiveness? Talk to the act digital team.
