The Role of Robotic Process Automation in banking and financial services

robotic proces banking

Technology is rapidly reshaping the way banks and financial institutions operate. Organizations understand that they need to invest in new disruptive technologies if they want to transform. However, it is not just the technology, they need to grapple with the big changes to their operating models as they start their digital transformation journey. Many companies are struggling to make the digital transformation happen because the challenge is so daunting. Before we jump to the role of Robotic Process Automation In banking and finance companies’ digital transformation journey, let’s quickly understand the most powerful drivers of this much-needed transformation. These drivers can be categorized in four C’s:

Tech-savvy customers expect differentiated digital experiences on the go

To keep up with the competitive environment, adoption of disruptive technologies has become a mandate

The need to reduce cost using smart technologies and invest more in innovation and customer experiences

Siloed data sources and paper-intensive processes demand speed and accuracy
To meet these needs and to successfully embark on the digital transformation journey, businesses require a strategic approach. But, there are many competitive priorities and innovative technologies to choose from and it becomes so overwhelming for companies to know where to start. That’s where Robotic Process Automation (RPA) plays the role of key enabler.
RPA has emerged as a ‘Starter Piece’ for long-term digital transformation initiatives that can be further scaled up in conjunction with existing and new technologies. The minimal investment requirement, ease of implementation and quick ROI within months are a few more prominent reasons behind the rising adoption of RPA technology across industries including banking and financial services.
Juniper predicts that the banking and financial services will represent 34% of the global RPA market by 2022. This estimate is supported by Juniper’s RPA cost analysis, which revealed implementation cost-savings of up to 40% over a baseline ‘do nothing’ scenario.
RPA, the next wave of automation, is already being utilized by leading organizations to help address a slew of challenges such as frequent compliance changes and regulatory uncertainties, inability to adapt and build scale with legacy systems, higher error rates and constant pressure to deliver consistent user experiences across omni-channels.
Time-intensive and manual processes are the best fit for RPA, so let’s look at some of the core operations that can be automated.

  • Customer onboarding
  • Account reconciliation
  • Monthly account reviews
  • Automated mailers
  • Credit card requests
  • Credit underwriting
  • Know your customer (KYC)
  • Anti-money laundering (AML)
  • Regulatory reporting
  • Loan processing
  • Mortgage processing
  • Investment processing
  • Exceptions reporting

KPMG estimates that by 2020, robo-advisors will manage $2.2 trillion in the USA. RPA technology offers promising business value such as increased security, reduced manual errors, costs and downtime, increased operational control, and most importantly freed up knowledge workers for customer facing tasks.

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Robotic Process Automation in the Insurance Industry

robotic process insurance

According to research conducted by Accenture, ‘Unleashing the potential of intelligent solutions could yield a $10- to $20-billion profit boost for the North American insurance sector.’

If we talk about Life Insurance specifically, according to KPMG, ‘India alone books about 360 million life insurance policies in a year which makes it one of the biggest markets of life insurance in the world, which is expected to increase at a CAGR of 12 to 15 percent over the next five years.’

The industry is witnessing a rapid expansion on a global scale and Robotic Process Automation can empower insurance companies to cope with the change. Robotic Process Automation (RPA) in the Insurance industry has proven to be a game changer when applied to core processes such as claim management, underwriting, policy acquisition and services, and back-office operations.

To Learn More, Request On – Demand Webinar Today: Robotic Process Automation In Insurance

Robotic Process Automation technology is the enabler of digital transformation

In today’s world, business transformation is a digital transformation and is about reimagining how businesses bring people, processes, and technology together to deliver enhanced value to their customers and maintain a competitive edge in a 24-hour global and dynamic economy.

Robotic Process Automation (RPA) technology has emerged as the key enabler in the space of digital transformation. Enterprises across the globe are increasingly adopting this technology as a quick return on investment can be achieved with minimal investment and rapid timelines.

According to industry analysts, Robotic Process Automation is the fastest growing digital transformation solution delivering operational agility and speed to market.

  • Gartner expects that the demand for RPA tools is growing at 20 to 30% every quarter.
  • Deloitte is projecting the RPA market to become $5 billion globally by 2020, with a CAGR of over 60%.

Capitalizing on this phenomenon is the key to innovation and growth. Let’s understand what RPA is and how it can be utilized to for your business to transform digitally.

RPA is a technology that is used to automate repetitive and rule-based operations performed by people. It is a way to create a virtual workforce and increase business to gain a competitive edge in both customer satisfaction and enterprise agility.

Here are a few examples of commonly automated processes

Robotic process automation technology enables operational flexibility, increased productivity and process simplification at a significantly reduced cost. This technology also helps companies to build a culture of innovation by freeing up their knowledge workers to focus on more strategic efforts and projects.

RPA software performance-enhancing features include:

  • Compatible with all digital interfaces
  • Built to simplify operational complexity
  • Meant to use at an enterprise level
  • Non-invasive in nature
  • Quick to implement, integrate and scale
  • Deployed to foster ‘fast work’

Digital transformation requires a profound change in business activities, processes, competencies, and models by leveraging a mix of technologies. RPA technology is an enabler of such digital transformation. It is quick to configure your existing systems requiring no changes to the flow of processes. It improves the speed of operations with enhanced security and scalability and helps modernize existing solutions without creating new interfaces and integrations. In addition, RPA requires significantly smaller investment and has a high potential of delivering rapid ROI within weeks versus years.

RPA provides the opportunity to change processes faster than ever, requires low coding skills, delivers higher performance with enhanced auditability and compliance and empowers businesses to innovate faster by responding quickly to evolving market conditions and the latest trends.

Interested to learn more about how effectively robotic process automation tools and solutions can be utilized to digitize operations and simplify processes for your business? Then you can refer our Robotic Process Automation Webinar Nividous

Welcome to Nividous


In this blog, I intend to focus on why we formed Nividous.

Both myself and Shvetal have spent more than 14 years with Business Process Management Platform company, Savvion (now Progress). In several ways, Savvion was the first company to bring commercial BPM platform to the market and have over years remained as thought leader in evolution of BPM platforms.

Through our journey, we have seen BPM platforms evolve and creating its own space in enterprise software. Because process exists everywhere, in early days there was a lot of confusion in market place as exactly what BPM is suppose to do. Those days are behind us and there is general acceptance and understanding on expectations of BPM platforms.

However, though there is significant adoption of BPM, in my opinion, it adoption never “exploded”.

There can be several arguments around why it has not exploded so far. However, at the core of it there lies one single problem – “Implementation” of BPM platforms and Programs.

Success of BPM platform will be defined by how well and easily they get implemented and supported and whether customer is able to achieve promised Return on Investment (RoI) or not.

There will be several claims that XYZ customer have achieved several hundred % ROI with less than a year. Those claims are true. However, those claims are for a “Single” Process Solution that customer has deployed, which is more than likely to be a very mission critical process, for which customer has significant cost already associated with. This is the reason why several BPM platform vendors started focusing on “Vertical Process Solutions” rather than just offering platform.

I am all for Vertical Process Solution. It helps customer establish value of BPM internally within organizations and achieve initial RoI very quickly as well as involves business through decision making and implementation. On the other side it helps reduce sales cycle for platform vendor very significantly.

However, in most (my judgment is 80%) cases, BPM platform doesn’t go beyond first process solution. Why?

At Nividous, one of our core focus is to solve this “Why?”! We have indentified some of core issues and continue to do so as we engage with our BPM programs of our customers.

We will be sharing our experiences through this medium.

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