Robotic process automation

The banking and technology sectors can seem like a race between a barge and a speedboat. The former definitely needs the speed, but carries a massive amount of weight in the form of customer data, business obligations, regulatory demands and more. A bank’s traditional mode of operation, including its core system, isn’t exactly known for its agility.

“The issue of having to deal with legacy platforms has been a thorn in [the banks’] side for such a long time, because technology continues to do what it always does: it evolves,” said Somesh Khanna, senior partner at McKinsey & Company, a global management consulting firm. “I can see there being, at least from a talent standpoint, some reshuffling required at a pretty rapid pace. When technology is so central to what you do, the scale of the change that is required is actually quite immense.”

Scaling your business is daunting since the economic downturn and resulting wave of new regulations. Banks should search for a competitive advantage whenever possible. The picture becomes clearer when you consider that productivity in the financial services and insurance industry has decreased by 10 percent since 2009. Compare that to the automobile industry, which has increased its productivity by 58 percent in that same timespan, according to a UK-based technologist.

Khanna said that more progressive financial institutions have placed major emphasis on the following:

  • transaction migration
  • web and mobile banking upgrades
  • innovation and testing
  • a forward-looking, digital culture

RPA’s Fix in the Mix

Despite a surge in banks implementing new technology improvements that enhance the customer experience, it will still be a while before they can replace their legacy systems. In the interim, new technology must be able to interact with the financial institutions’ older platforms. This setup increases the manual, mundane and mandatory tasks on the back end for each institution. Robotic Process Automation (RPA) can automate the back-end processes to allow banks to focus on becoming the institution of the future rather than back-logging the past.

RPA software tools automate the manual process, saving valuable time while reducing user input errors (which would take even more time and money later). The robot also boosts data transfer quality over system-to-system data conversions because the original source data goes through all of the input rules and validations for the bank’s core system as if bank personnel were actually keying the customer data.

Operations managers and other bank personnel need not be techies to operate RPA software, but the result is definitely high-tech and high-performance. As the banking industry continues to evolve — with technology front and center in that progression — financial institutions need a data automation solution that blends the old and new, meets challenges, and delivers speed and efficiency every time. RPA compresses the costs associated with banks’ considerable operational demands so that financial institutions can be more productive and focused on the future.