Impact of Robotic Process Automation in Banking
The world is moving fast and so should your enterprise. In today’s time of fast-paced innovation and evolution, visionary and revolutionary businesses are looking towards enhancing and elevating their business operations in every possible way. This cut-throat competition requires an organization to implement strategies and inputs that are cost effective, time-saving and at the same time, precise and accurate. This is where the concept of Robotic Process Automation in Banking comes forth.
Without getting into the nitty-gritty of what the concept of Robotic Process Automation technically means, it is pertinent to point out the countless benefits this robotic technology holds. Although the concept of process automation is not new by any means, the digital age has, however, revolutionized the financial sector in a completely new fashion which is taking business operational setups by storm. More and more businesses are opting for the Robotic Process Automation Within the Banking Industry and the credit is owed to its multitude of advantages and leverages over other automation paradigms. Robotic Process Automation in banking increases efficiency in business processes by providing a cost-effective substitute to human resources whether in-house or outsourced. A few prominent features and advantages of robots in banking include:
- 24/7 process execution
- Elimination of errors due to human factors
- Lower cost
- Greatly reduced time to market (RPA is quick to implement)
Benefits of Robotic Process Automation in Banking
Upon closer inspection of the current financial scenarios, it is high time for companies to look towards a more effective automated technology which gives them leverage over their competitors. At times of extreme market pressures and low-interest rates, businesses are left with only one choice, to evolve towards effective cost management and efficiency to improve consumer satisfaction. Let’s take a deeper look as to how the Robotic Process Automation in banking is revolutionizing the financial sector. Advantages of robots in banking include but are not limited to:
To retain and improve quality and performance, banking services are always on the lookout for experienced and efficient staff who promise to bring quality and a higher level of satisfaction to the customers. However, such an endeavor is expensive, experienced professionals are usually not very economical. Even if the company opts to outsource, it still would not be as cost effective as deploying Robotic Process Automation. Additionally, by undergoing a process analysis exercise during the RPA implementation, redundant steps can be eliminated altogether within a process, saving other expenses incurred by those steps. Profit margins are bound to increase (according to industry statistics), Robotic Process Automation in banking operations is less than half the expense of a single unit of human resource. Moreover, robots also save the costs for overtime, medical and other expenses linked to human employees.
With the implementation of a Robotic Automation Process, banking services have the flexibility to employ their full-time employees towards other, quality oriented, more complex, tasks which require human creativity and intellect. Such employees could work towards creating and offering more customized products for their customers, which are tailor-made for every consumer’s particular needs. Such a shift holds in itself a vast sea of opportunities, which is bound to benefit the enterprise in the long run.
Independence From Shared Service Centers
The robots are designed as such, they completely eliminate the dependability upon shared service centers. Equipped with the latest trends of artificial intelligence, the Robotic Process Automation is completely well versed with manual tasks and has the ability to work around the clock providing services 24/7 and 365 days a year. Robotic Process Automation in banking also eliminates reduced productivity due to a time zone difference and clashes between various remote service stations and hence provides a hassle free, smooth and constant quality service delivery. Banks should also consider the added advantage of retaining process knowledge within the organization. Additionally, customer private data also never leaves the organizations network.
Another benefit of employing Robotic Process Automation in the banking industry is the omission of human error related issues. Since the robotic systems are designed only to execute specifically configured operational instructions, they result in a precise, accurate and error free process execution which reduces the time and costs associated with correcting human errors.
The Artificial Intelligence of the new age robots is designed as such that it has minimal maintenance and coding requirements. To operate such a Robotic Process Automation operation in banking is, therefore, a seamless and hassle-free procedure. Robots can very flexibly adapt to the operational setup and are completely capable of operating third party software as well. Hence, in banking and financial institutions, these robots can very easily work on business applications, be it internal applications such as core banking, CRM or credit card processing systems, or external systems such as regulatory background check websites, external cloud-based applications, etc.
The prospects for Robotic Process Automation in banking are profound and vast and this area of digital evolution is only bound to grow further and expand in the coming years. However, it is worth mentioning that once an enterprise decides to incorporate the RPA paradigm within its strategy, it needs to consider some important key points. It is helpful to perform research and talk to outside vendors who have performed these implementations to gain insight into lessons learned and the groundwork that needs to be laid for a successful program.
Businesses often ask the question: “Who will be operating the process once we have incorporated the Robotic Process Automation into our financial setup?” For such a query, there are two options available; either the entire setup with all the permissions is granted to the company or an IT specialist that partners with the company to oversee implementation and operations, or it can be managed internally by setting up a horizontal organization-wide Center of Excellence and training program to re/up-skill existing resources.
In today’s age, the world is pacing rapidly forward and so are businesses. To keep up with the accelerated pace of growth, and an aggressive competitive landscape combined with mounting market pressures, it is pertinent for businesses to evolve rapidly through effective cost management, resource utilization, and automation. Robotic Process Automation is the dawn of the modern digital worker.