Cross-functional IntegrationWorkflow Automation

How RPA is De-Risking and Standardizing Banking Services

RPA is one of the emerging technologies that banks prefer for their routine, repetitive, and structured tasks. It also helps in compliance maintenance and regulation of end-user computing procedures. RPA investment can grow up to US$1 billion by 2019. Banks are responsible for 40 percent of the share. In this article at Global Banking and Finance Review, Ajay Katara, a TCS consultant, narrates how RPA is transforming businesses.

The Multiple Benefits of RPA

Banks often struggle to reduce compliance costs, monitor processes, provide faster services, and lower system downtime. With RPA, you do not have to replace legacy systems to increase delivery efficiency. It also helps you meet the industry standards, provides auditing ability, and reduce human errors.

1.    Acceptance in Banking Processes

Bankers are still using RPA for PoCs, assessing the benefits and ROIs. Its adoption has three maturity stages. In the assisted level, you must monitor the automation process. For unassisted adoption, enjoy upgradable end-to-end automation with minimal human intervention. Lastly, cognitive RPA includes NLP, machine learning, etc. to perform complex tasks.

2.    Business Evolution

Banks want to gradually use automation for more complex work by integrating it with ML and NLP. Since this does not disrupt the current IT scenario, they can use it to address complicated decision-making tasks. Instead of working in silos, the sector is choosing enterprise-level RPA adoption, giving the technology strategic importance.

3.    Risk and Compliance Management

For risk and compliance management, automation is majorly used for KYC integration and report generation. Later, banks will use the technology for complex tasks like AML alert enquiry, credit evaluations, risk settlement, and LCR report generation. Currently, they still need a human resource to take the final call.

4.    Enterprise-Wide Adoption

Financial institutions are establishing Centers of Excellence (CoEs) that look after automation projects at an organizational level. They are creating a framework for the evaluation of automation use cases and applicability in LoB’s. They are also responsible for installation and maintenance as well as analysis of reprocessing capabilities.

5.    Reprocessing Capability

Instead of developing RPA use cases from the scratch, banks are ideating if the same workflow can be reprocessed for other use cases. They are building a structure that would identify functions where the use cases could be reprocessed. Some third-party tools also provide a reprocessing knowledge base to enable faster implementation.

6.    Challenges

As all new initiatives face challenges so does this technology adoption. Lack of standard rules and regulations around the technology are making banks cautious about its use. Some financial institutions are yet to organize their data and processes to fully realize the potential benefits. Majority of the experiments focus on specific functions rather than enterprise-level implementation.

Despite such challenges, banks are going to pour 10 to 15 percent of their RPA spends in risk and compliance management in the coming years. RPA’s non-invasive evolution and efficient business benefits would increase its adoption rate.

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