Robotic Process Automation: Concept, Benefits, Challenges in Banking Industry

Abstract

The banking and financial industry is in the midst of digital disruption. The industry is further challenged by the need to optimize cost, build scale and deliver swift responses to service requests. However, banks are not able to innovate due to fragmented processes and multiple legacy IT systems that manage these processes. In addition, banks also have to be compliant to regulatory requirements and maintain data privacy while processing a large number of documents and personal data. Robotic process automation (RPA) or "automation" describes logic driven robots that execute pre-programmed rules on mostly structured and unstructured data to some extent. The concepts have been around for nearly a decade, and they have advanced quickly. In financial services, insurance carriers have used RPA in claims processing for quite a while. Capital market firms are now turning to automation to reduce costs, provide better service, and even make complex regulatory implementations work more efficiently. Financial institutions can reduce cost, improve quality of service and scale the existing resources to the major population. All services will be available and operate 24/7 basis. This paper explains the basic concept, advantages, challenges of Robotic process automation in banking with the help of case study method in banking industry.