Robotic process automation (RPA) Is a tool which is using screen scraping and other technologies to create specialized agents which can automate clerical tasks. Now a day it is one of the most popular application as it allows companies to automate their system.
According to the industry analysts, RPA is the fastest-growing segment, which believes to cover 85% mid-size, and big size firms in some of the other forms. They estimate that RPA grew 63% in 2018 to $846 million with all top 3 vendors growing >40%.
Forrester shows the growth of the RPA market in the image below. While the total RPA market revenue was $125 million in 2016, the total valuation of the top 3 RPA firms became $10.8 billion, with total revenue of $1 billion in 2019, and the total RPA revenue is expected to increase to $1.5 billion in 2020.
According to industry participants, a 2020 survey by Deloitte states that 53% of their respondents started to implement some form of RPA, and this percentage will become 72% by 2022.
Fortune 500 CEOs also quickly got excited about RPA. John Cryan, CEO of Deutsche Bank said back in September 2017:
In our banks we have people behaving like robots doing mechanical things, tomorrow we’re going to have robots behaving like people
Now question arises why RPA is important? It is simple as it offers various benefits to the business like it improves employee and customer experiences, which helps in reducing business costs. It also reduces the time taken for completing particular tasks. It helps in increasing productivity of the employees. And also helps in moving forward by taking competitive advantage.
Tasks of RPA Bots:
- Launching and using various applications including
- Opening emails and attachments
- Logging into applications
- Moving files and folders
- Integrating with enterprise tools by
- Connecting to system APIs
- Reading and writing to databases
- Augmenting your data by
- Scraping data from the web including social media
- Data processing
- Following logical rules such as “if/then” rules
- Making calculations
- Extracting data from documents
- Inputting data to forms
- Extracting and reformatting data into reports or dashboards
- Merging data from multiple sources
- Copying and pasting data
Before the RPA, companies relied on 3 approaches. These approaches are very well explained in the below diagram presented by Deloitte. For your information Deloitte has not added cost/efficiency as a dimension here. RPA is also the most cost-effective approach:
As you can see not a one approaches offer the flexibility, speed and cost advantages of RPA. However, as CIOs know that management is the art of trade-offs. And sometimes IT transformation solutions though they are slower, generate better returns in the long run.
Financial services including banking and insurance
According to McKinsey Global Institute’s 2017 report on automation, 43% of these jobs are automatable. This is because data entry and processing is an important part of these businesses. Furthermore, these businesses are subject to constant changes in regulation such as KYC requirements. Bots can be taught regulatory changes quickly and in a centralized way. This helps companies avoid embarrassing compliance issues.
According to Accenture’s report on insurance process automation, some good activities to automate are:
- Sales processes
- Updating sales scorecards to agents
- Conduct required regulatory and legal checks (KYC)
- Conduct credit checks
- Account maintenance services not currently supported by straight-through processing
- Data entry for clearance and registration processes
- Update systems with client information
- Generate a renewal premium
- Policy servicing
- Update to customer information including bank account details
- Reject or cancel policies if payments are not received
- Identify and reconcile policy premium discrepancies
- Claims processing
- Process claims payments for pre-approved amounts
- Assign to claims handlers
- Input First Notice of Loss (FNOL) submissions
- Notify loss adjusters
- Automate daily bank reconciliations
- Process low-risk payments
Our recommendation is to get your hands dirty ASAP, that’s the best way to learn more about any topic!