Join BI PrimeThe SBA has told banks and lenders that it will no longer accept stimulus loan applications submitted using robotic process automation tools.
In fact, Mancini argues, the move to block RPA disadvantages smaller lenders, who can't process as many loans as quickly as their larger competitors. The Small Business Administration has told banks it will no longer accept stimulus loan applications processed using robotic automation tools as the agency began a new round of funding after the first ran out in just two weeks.
The SBA said banks and lenders that use RPA "burden the processing system and diminish its capabilities," the agency said in a Tuesday notice to the financing institutions. The SBA put out the notice on the use of RPA as the agency came under fire after a big chunk of the first round of loans under thewent to public companies, instead of small businesses, including mom and pop shops that are struggling to survive in the downturn.
Contrary to the view that RPA is a tool used mainly by big financial institutions, he said smaller banks have actually turned to robotic process automation as a low-cost tool for processing loan applications faster.
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