Robotic Process Automation in Financial Services

RPA provides innovation step change for financial services

High volatility in financial services has long been a common feature of the industry – influenced by political, economic and geographic fluctuations, it is progressively more difficult for organisations in any area of financial services to maintain a constant operational strategy.

The financial crisis of 2008 was unforeseen and acted as a catalyst for widespread disruption and change – creating a relentless need to adapt and innovate. The more nimble organisations will be able to exploit market opportunities ahead of those with a more burdensome legacy of old systems, independent operations and a reliance on a diminishing pool of talent.

Having a capability to integrate systems and automate processes can become a key advantage in winning new business and increasing profitability while demonstrating regulatory compliance and product innovation.

Virtual Operations can help retail banks, investment banks, insurance companies and credit card companies automate across a range of functions with low risk and quick deployment.

With robotic process automation, financial services organisations can:

  • Remove mundane tasks and allow resources to deliver more value to the business.
  • Reduce transaction times for high volume/complex tasks increasing value to customers and shareholders.
  • Improve speed to market with new products and services, more rapidly utilising connective technologies (internet, cloud computing, mobile devices) between service providers and customers.
  • Augment existing resources in onshore and offshore processing centres where there is a constraint on recruiting or a shortage of local skills.
  • Limit the downside impact of attrition.
  • Patrol, monitor and report regulatory requirements across systems and functions.
  • Integrate legacy systems following mergers and acquisitions, across geographies and between products.
  • Improve access to disparate data providing consumer and competitor analysis.
  • Reduce operational costs.

A number of financial services companies are already benefiting from the deployment of robotic process automation. Examples include:

  • Bank: 90% of credit card fraud and chargeback processes automated – reduced headcount, improved speed to address customer queries and improved ability to meet seasonal peaks.
  • Bank: Automated account closures following fraudulent account activity – saved over 40 staff and mitigated against further fraudulent activity and subsequent losses.
  • Bank: Process automation deployed to process PPI claims – saved 100’s staff and improved accuracy and compliance in a high profile and sensitive customer area.
  • Insurer: Multiple systems and policy books, all with differing formats and data conventions, consolidated onto a single system – reduced support costs for multiple legacy systems, and was a pre-requisite for future transformation initiatives.
  • Insurance: Automation facilitated better collaboration with suppliers in bulk payments and recoveries following motor claims.
  • Markets: Automation of the redemption of funds from stocks and shares ISA’s improved customer satisfaction and accelerated the launch of new customer facing website.

For all types of financial services companies, operational costs and efficiency, customer service, market competitiveness and regulatory compliance can all be enhanced by taking advantage of this low-risk, low-cost and liberating technology.

“By adopting and improving the use of technology in financial services, firms and consumers can benefit in many ways. Interactions can be quicker, less costly, simpler and more efficient, improving the functioning of markets”

FCA
“Our Risk Outlook”