Too many processes at financial institutions still rely on people and paper; often back offices have thousands of people processing customer requests at any given time. This high degree of manual processing is costly and slow, and it can lead to inconsistent results and high error rates.
Routine, repetitive, rules-based operational tasks are perfect for robotic process automation (RPA). According to Accenture's recent report, organizations that have adopted RPA solutions have been able to reduce processing costs by up to 80 percent, reduce time to perform tasks by 80-90% and to eliminate human error from key processes. Taking a close look at back office tasks in the banking sector, many of which involve repetitive, rules-based processes; it's easy to see why leading financial institutions are quickly taking steps towards harnessing the considerable potential of RPA.
The significant opportunity to increase levels of automation in back office business processes is not a recent development, but several barriers prevented it from achieving its full potential. We've identified 4 traditional obstacles to automation in financial services and how RPA is unlocking the key to rapid, large-scale automation of business processes:
1. Automation is not regarded as a business priority
Traditional requests for automation are initiated by IT departments that have their own, different agendas and may overlook business priorities. These automation scenarios are typically introduced to support or enhance IT processes and therefore fail to grasp the full spectrum of automation options that could be used to support the needs of business users.
RPA provides the technology to transform business at scale and demonstrate significant value to the entire organization and not just one department or entity. RPA implementations are flexible enough to solve many business use cases and the solution you choose may also serve dual purposes. For example, using the Leo RPA authoring environment, once you have offloaded repetitive, rules- based processes to your virtual workforce, you can create task automation scenarios that automate tasks for your human users as well – allowing you to realize greater ROI from your automation investment.
2. Banks often lack the internal capabilities to deliver in a timely manner
In today's cut-throat business environment, a company's survival often depends on its agility and responsiveness to unpredictable market forces such as mergers and acquisitions, regulatory requirements, globalization, in addition to the demands of customers, partners and the competition. Unfortunately internal development teams may not always have the time or resources to deliver change on short notice.
Leo RPA makes it fast and simple to develop flexible and scalable business processes. Designed with business users in mind, the Leo Studio (automation scenario authoring environment) is easy to learn and does not require programming experience. The result is that your automation project can be up and running in days – keeping you ahead of the competition and accelerating revenue.
3. Legacy systems don't support automation goals
Few banks have had the appetite for reengineering their legacy systems. Mergers and acquisitions, new product launches, and regulatory changes have left many banks with a complicated IT architecture and yielded highly complex business processes that prove very hard to automate. Redesigning outdated systems calls for time-consuming, complex system integration projects that can cost hundreds of millions of dollars.
With RPA, software robots solve this problem by seamlessly supporting any business application, including: desktop, web, legacy or remote applications. Software robots act as liaisons between the old and new platforms and applications, as well as over the Cloud – allowing you to leverage existing legacy systems and applications to quickly integrate with new systems and Cloud-based services.
4. Lack of governance and control
Earlier process automation solutions such as desktop automation software and custom built macros were tricky to control and monitor - making it difficult to provide a detailed audit trail necessary across financial institutions.
The best RPA solutions can easily view, track and report changed to processes. The software robots use an interface to perform tasks. The robots read and understand the screen in the same way a human does and then perform tasks based upon what it views. Unlike a macro, automated tasks are controlled and managed using a centralized dashboard. RPA platforms such as the Leo Console, make real-time monitoring, remote configuration, scheduling and management of software robots simple and effortless while providing the governance and control that was previously missing.
Burdened by rising transaction and data volumes, the financial services sector faces the challenge of having to reduce costs and increase efficiencies. Robotic process automation has the potential to revolutionize the way in which back office processes and operations are executed, efficiently and cost-effectively to achieve these goals.
Watch our short video to learn more about how RPA can transform your back office operations and business processes:
Kryon Systems is committed to assisting organizations realize their key performance indicators (KPI) by providing performance improvement solutions which support both the end-user and IT automation efforts alike. To this end, we offer a comprehensive solution to the business user in the form of Leo Performance Support as well as a cost-effective answer to efficient process execution with Leo Robotic Process Automation (RPA).