Robotic Process Automation (RPA): Role of Automation in Finance

Changes in technology demand business organizations to actively respond to the customers’ needs and specifications to become more productive and maximize value to their business.  In the year 1960, physical robots brought changes in process automation to the manufacturing industry, now with the technology transformation, RPA is drawing much attention in the finance industry. Robotic Process Automation (RPA), introduced in the early 2000s, is a software solution that uses robotic software to replace the employees from performing repetitive works like file transfer, copying and inserting data, filling forms, analyzing routine reports, etc. and automates them, so that the employees in the organization can be involved in more complex work which leads to greater productivity and added value for the organization.

The robots used in the financial organization help them reduce operational costs and maximize efficiency. A study says about 80% of financial service providers have already implemented RPA, 50% of controllers are in the process, and the remaining are planning to implement. The Covid -19 pandemic increased the interest in RPA for many corporates which result in increased revenue growth by 19.53% i.e., $1888. 1 in 2021, against 11% in 2020 million worldwide. Forecasts also predict that 90% of the global organizations will adopt RPA by 2022, through 2024, they triple the operational capacity with existing RPA.

RPA is rapidly evolving, from simple repetitive task automation to complete process automation which will improve the financial analysis accuracy in organizations. Automating the process in finance requires combining finance robotics with artificial intelligence, algorithms, NLP, and other intelligent automation technologies. Effective implementation of RPA results in greater productivity, minimal errors, and increased productivity.  With the advanced robotic software, even complex tasks like understanding the unstructured data, interpreting the data after analysis, engaging in chats are also possible.

In the world of finance to stay competitive every financial organization especially banks should adopt the latest technology to deliver the best customer experiences, one such emerging technology is robotic process automation. RPA is an effective tool for banks to maintain a competitive advantage in the evolution of technological transformation with the ability to digitalize the back-office tasks like clearances, record maintenance, copy and pasting data, filling forms, formatting, settlements, IT services, etc. so that the bank employees can handle all front office works like account management, client handling, wealth management, investment banking, sales, etc.,

For example, when the customer calls the bank to request information about credit facility employees manually receive the call and provide all the information, the entire process is manual and repetitive in nature. But RPA has the power to automate information and send it to customers without any error with one click. With this example, we can understand that Robotics has several benefits such as employee workload being reduced, greater operational efficiency, reduced time and costs, promoting good customer satisfaction, and also increases revenue. Innovation is continuing to rule the finance industry. This provides solutions to meet customer expectations and remain competitive in the market. RPA is one such solution to all the repetitive tasks, with automation has made all the business process management easy and convenient in the organization.

Prof. Ramya H P
Assistant Professor,
DSCE -MBA

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