Robotics Process Automation (RPA): Optimizing Today’s Banking Workforce
March 15, 2016
The constant change of the technology landscape, whether it’s personal technology or business technology, has caused an industry that has relied for decades on calculators and balance sheets to dive full-throttle into the digital age through the adoption of robotics process automation (RPA) and Artificial Intelligence (AI).
“Reliable technology is really the key to banking industry success,” said Paul Pinto, Vice President of Banking, Financial Services & Insurance at Digital Intelligence Systems, LLC (DISYS). “The more automation and reliability banking can bring into the customer experience will define the industry’s success for many years to come.”
Although there is no official count, it is estimated there are more than 14,000 banks across the world. A little more than 8,000 of these banks and credit unions are said to reside in the United States and they represent approximately 7.2% or $126 trillion of the US gross domestic product.
The banking system in the United States supports the world’s largest economy with the greatest diversity in banking institutions and concentration of private credit in the world. The financial industry is under pressure to make an institution’s services available 24/7 as profit margins shrink and customer satisfaction waivers.
In 2015, a JD Power & Associates report stated ATM satisfaction among consumers declined from 2014 as mobile banking tools have increased. But customers are not entirely satisfied with the breadth of services offered to them on the mobile devices.
As customer expectations outpace technology improvements, the report states satisfaction with mobile banking and ATMs is dropping … Customers expect to be able to perform more functions on the same device this year than they did last year and they ”ease of use” is still king.
‘Success will not be driven just by adding more bells and whistles,’ the report states, “But by balancing functionality with ease of use and then clearly communicating features and benefits to the customers.”
Banking organizations are under pressure to find ways to lower costs in order to improve profitability and position themselves for long-term growth. IT organizations within financial institutions are being tasked to re-evaluate processes and their operations as returns on outsourced call centers, back office operations and loan processing decline.
CIOs are looking for new ways to cut costs while positioning their organizations to improve service availability and enhance the customer experience. The very real threat posed by Google and Apple who both have mobile pay systems presents an additional layer of urgency for financial institutions to accelerate innovation.
These two tech giants already have untold amounts of customer data and are experts at manipulating the information to gain a stronger foothold. Some in the financial sector believe, if it doesn’t make changes quickly, the IT giants will begin offering other kinds of financial transactions and accounts.
To remain relevant, financial institutions must take advantage of the rapid-fire changes in technology emerging today. Otherwise, their competitive edge could dissolve as tech companies win the loyalty of the young.
In this paper, we will take a top-level look at RPA and AI, discuss its data and the importance of streamlining RPA analytics processes. We will also explore the changes in the banking industry workforce as it applies to the implantation of RPA and how this, instead of a negative, is a chance for banking employees to get out from under the mundane and find more fulfilling roles within their organizations.