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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