The Banking and Financial Services industry has undergone enormous transformation over the last decade. Changing regulations, heightened scrutiny by regulatory bodies, heavy compliance costs, hefty fines were a few reasons behind that transformation. The increasing operational demands and obligations led the traditional banking institutions and startups with cutting edge technological innovations to start looking for answers.
FinTech emerged and became the new mainstream in 2016, causing disruption and bringing fresh perspective to such business challenges. Robotic Process Automation (RPA) is one such innovation which has automated the manual tasks by replacing humans with digital machine labor. RPA provides the organizations with digital speed and greater operational efficiency, freeing up the skilled labor to perform complex decision making tasks.
RPA’s potential is grabbing the attention of IT consulting and advisory firms, outsourcing providers, and enterprises alike. Initially, when this “robotic” software is configured, it captures and interprets the actions of existing applications employed in diverse business processes. Once it has been trained to understand specific processes, it mimics how an employee would process transactions, manipulate data, trigger responses and communicate with other systems when necessary. It manages rules-based and repetitive tasks, allowing human workers to focus on more valuable, customer facing roles.
RPA is finding widespread application in the Banking and Financial services world especially in Retail and Investment Banking space. Let us now have a look at a few of the functions where RPA is finding its relevance.
GGK has identified the following pre-requisites for identification of a use case for an initial RPA implementation as follows:
- Identify a rule based process which does not involve decision making/judgement.
- Make sure that the process should be initiated by a digital trigger and supported by digital data
- Confirm that the process is performing its desired function and is stable.
- Check whether the process involves high volume of executions.
- Check whether the process leverage the key systems of the firm so that it can be used as a proof of concept.
We have a simple 1-2-3 formula to implement RPA:
- Identify the processes which can be automated with a robot
- Take a suitable process and automate as a pilot in development environment
- Implement in production and scale
A classic example of a process where RPA could be implemented is KYC Compliance. Many organizations across the globe use manual and time-taking tasks for checking identity information of prospective clients against numerous watch lists and public databases of Law Enforcement agencies and collect and integrate the necessary data from external sources and internal systems. There are obvious challenges to this as manual process makes it hard to keep up with ever increasing and evolving regulations. Onboarding remains slow and impacts revenue realization. Increased costs of compliance along with steep fines for violations have paved the way for organizations to embrace RPA.
Organizations that have implemented RPA or are in Proof of Concept stage of discovery have reported that RPA implementation:
- Reduces cycle time and improves operational efficiency by up to 90%
- Reduces manual costs by close to 70%
- Increases staff productivity, service levels and capacity by 35-50%
- Frees up knowledge workers for strategic assignments
- Association with multiple tool vendors that makes us tool agnostic in order to implement the relevant tools based on clients’ requirements.
- Strong domain expertise and team of experienced professionals to ensure a smooth transition.
- Successful RPA implementations across industry for multiple clients including an implementation of 100+ process robots for automation of routine tasks.
- Well defined solution framework and time-tested delivery model that consistently helps clients improve operational efficiency