RPA is a budding technology but it has earned huge popularity in the finance sector. This sector has emerged as an early champion in the Robotic Process Automation technology. According to the 2019 Economist Survey, 59% of Finance and Accounting leaders trust that RPA will help their businesses gain a more competitive edge in the upcoming years. The reason for this belief is manifold.
In this article, we will try to explore why RPA solutions are embracing so much interest from banking services?
RPA does it efficiently and accurately.
Financial processes deal with endless forms, applications and declarations that are needed to be matched and compared for completeness and retrievals. Human error becomes common here. Robotic Process Automation helps institutions do these things better, cheaper and faster than the human workforce. The technology also shields the businesses from security breaches and assist them in delivering the seamless experience their customers expect.
Reduces client costs.
RPA reduces operational cost by replacing human workforce with “software bots”. This lowers down the processing time of high-frequency tasks and leads to an estimated cost saving of around 50-70% for the company. Also, RPA application can be installed without changing the existing IT infrastructure and gives more control over the adoption process to the finance function.
Narrows the gap between accounting and digitization.
Many RPA vendors like Edgeverve and Uipath claim that their Robotic Process Automation software leverages AI and machine learning technologies which can help financial institutes automate tasks such as data verification, credit scoring, fraud detection, financial and external reporting, treasury processes etc. The technology can also aid finance sector in driving value creation by extracting and combining data from various sources such as social networks and shared drives.
Helps financial institution in embracing change and complexity.
Robotic Process Automation tools help medium and large banking firms to accommodate changes and increasing complexities with ease. With competition at the peak, there is a need for such firms to evolve continuously with market demands and emerging technologies. RPA in banking being highly scalable, quickly deployable and rapidly adaptable, assist them in handling more and more complex workflows without adding to their headcounts.
In this era of globalisation and fourth industrial revolution where concepts of virtual banking are becoming new normal, it has become imperative for banks and other financial institutions to remain highly competitive and provide exceptionally consumer-centric services.
Struggling with the scarcity of skilled labours, a sharp increase in personal costs and a need to increase efficiency in processes, the financial institutions seem to become more and more dependent on advanced technologies like RPA and AI.
However, machines can never completely take over the finance functions. Human supervision will always be needed for advanced analysis and interpretations.