Robotic Process Automation: application of automation in the financial services industry

By 08/02/2022 No Comments

In the corporate environment, finding new ways to increase internal efficiency while maintaining a high level of customer satisfaction is becoming a crucial factor not only for achieving optimal results, but more importantly for survival within an increasingly competitive environment. 

Large companies belonging to the financial sector that take advantage of technological tools and innovations are called Fintechs: this is where RPA (Robotic Process Automation) comes into play to increase IT and digital operations in Fintechs. In the current market, three winning elements are identified in the automation landscape: 

  • The maintenance of transparency by Blockchain technologies
  • The personalization and optimization of services (on a fully automated level) by artificial intelligences
  • The improvement of operations by Robotic Process Automation (RPA). 

The Financial Service Industry (FSI) belongs to this category of evolving markets and has several characteristics that make it one of the best candidates for the application of Robotic Process Automation, i.e., the automation of rule-based processes with integrated software at the user interface level that can interact with the internal IT landscape or external web application that simulates the work of a human being. The customer today expects quick and easy access to services, therefore, financial institutions facing these needs and costs are taking advantage of RPA: this process involves bots that mimic daily and routine activities, which can be easily automated. 


The financial industry today

Recently, Japan’s largest banks such as Sumitomo Mitsui Financial Group Inc. (SMFG), Mitsubishi UFJ Financial Group Inc. (MUFG), and Mizuho Financial Group Inc. (MHFG) have implemented banking automation through Robotic Process Automation (RPA) to save both labor and operational costs. Given the large amount of data handled and processed every day, several banks around the world are advocating the use of RPA to minimize both possible errors and “human efforts.” There are many processes within banking systems that have benefited from automated processes through RPA technology, allowing teams to focus on customer engagement and business growth. Specifically, some of these processes include automating basic tasks such as filling out forms, extracting and linking data, formatting processes and eventual “copy and paste,” and finally both reading and producing databases.  

Thanks to Robotic Process Automation, many financial institutions are implementing it every day, around the clock, serving as a real-time aid to important processes within business systems. Thanks to the existence of dynamic new business models, increased investment in technology, and multiple customer channels, the global financial sector is undergoing a colossal change: in fact, banks are harnessing the potential of RPA not only to automate manual processes, but also to transform the services offered to customers. With the emergence of fintech companies, the digital transformation taking place in global banking is growing exponentially.


Automation implementation among challenges, prospects and solutions

Through RPA implementation, the most successful results are identified in significantly faster and higher ROI, achievable with limited investment compared to a traditional IT project, and tangible efficiency improvements. Undoubtedly, however, several challenges emerge that can result when implementing an RPA solution, the nature of which can range from simple technical and infrastructure issues to strategic and behavioral issues. Despite the fact that RPA is based on a mechanism designed to mimic human behavior, a minimum of process reengineering is required to effectively automate activities. This fact adds to the range of all the possible problems that can occur when making a change to an established procedure, and the complexity increases further when considering the fact that the change involves both business and IT functions.

From a strategic perspective, to successfully launch and maintain an RPA initiative, companies should adopt a mindset that takes into consideration a new category of digital workforce, which includes robots. In this regard, therefore, recent developments in the financial services industry are shifting the focus to the concept of efficiency, and RPA seems to be the right solution for such emerging needs.


Best IT solutions in fintech offered by Allinweb

Allinweb, through its services, offers digital solutions by supporting clients working in both the public and private sectors, so that they can gain real market leadership, materializing a fusion of IT professionals and financial expertise, offering cutting-edge IT solutions, in the areas of Fintech, AI, Psd2, Digital Banking, Blockchain, Cryptocurrency, Big Data, Test automation, Hyperautomation and RPA.

The company engages in business consulting and IT services, placing itself on a plane of excellence on topics such as Business Intelligence, Data warehousing, ERP system integration, etc.  Levels of specialization include certifications issued by Avaloq, a global leader in digital banking solutions, which in Allinweb covers the area of trading, payments, strategic management and finally the area of corporate compliance.