With more than 14,000 banks accounting for approximately 20% of global GDP, financial services is one of the largest and most vital industries in the world.
Financial services institutions, in particular, must find ways to keep pace as the forces of technological change exert greater pressures. The banking industry—a previously slow-moving sector in modernizing its systems—is gradually evolving to meet the digital demands of a rapidly changing marketplace filled with tech-savvy, mobilized and millennial consumers.
“According to a recent survey conducted by KPMG, the majority of CEOs believe the next three years will be more critical to the banking industry than the previous 50 years. 81% are concerned about keeping up with new technologies.”
At the same time, the industry continues to face many difficult challenges as the costs and resources needed to comply with ever-increasing regulations continue to rise. Growth has been slow, with revenues and profits remaining relatively flat over the past several years.
Management consulting firm McKinsey & Company found that the high rate of manual processes on the back-end of banks can be time-consuming and error-prone: “Often, back offices have thousands of people processing customer requests. This high degree of manual processing is costly and slow, and it can lead to inconsistent results and a high error rate.”
So why haven’t more banks automated manual tasks? Gartner stated: “Most organizations still have a lot of routine processes that use employees to manually manipulate structured and unstructured data. The reason these processes have escaped automation until now is a mélange of traditional practices, cost of integration of systems and lack of organizational discipline around multiple process variations.”
The good news is there is an emerging, cost-effective and easy-to-deploy solution called robotic process automation (RPA) that can eliminate manual tasks to streamline workflows, improve compliance and reduce costs.
The Institute for Robotic Process Automation (IRPA) defines RPA as “the application of technology that allows employees in a company to configure computer software or a ‘robot’ to capture and interpret existing applications for processing a transaction, manipulating data, triggering responses and communicating with other digital systems.”
Get in touch with us to discover the emergence of robotic process automation (RPA) and how it’s transforming key business process activities in the financial services industry.