How RPA Is the Next Step In the Digitization Of the Finance Sector
According to Fortune Business Insight, the global Robotics Process Automation market is projected to reach $43.52 billion in 2029. Though there are subtle challenges and major differences in purpose, requirements, capabilities, and outcomes, “Automation” has been a must-have that allows machines to perform human tasks more efficiently.
Despite their distinction, the global financial segment is eyeing automation technologies as the next big leap in the evolution. Also, Analytics Insight’s latest survey, presented by more than 55% of BFSI companies (Banking, Financial Services, and Insurance), identified RPA as a driving force to improve efficiencies and service quality and is planning to deploy it by 2025.
So, if you are wondering how RPA has impacted the financial sector and what benefits it has brought to the table, here’s the answer!
The Benefits of Robotics Process Automation In the Finance Sector
Mirroring the upthrust of global finance automation, it’s estimated the RPA market within the financial service sector will witness phenomenal growth over the next decade.
According to a recent report by Allied Market Research, the global RPA in the financial service market size is predicted to accomplish approximately $5 million by 2030, up from $3,441 million in 2020.
Therefore, it’s right to say that with a growing CAGR of 30.9% from 2021 to 2030, it’s portrayed that RPA benefits speak for themselves. Indeed, Gartner says that 80% of financial leaders have established or intend to implement robotics process automation.
Because of the voluminous routine and mundane and repetitive tasks in finance, RPA acts as the cog in the wheel to increase the effectiveness of finance functions and accounting processes.
We have briefly touched on the unskippable benefits of RPA in the finance sector, but its value to specific industries is immeasurable. Especially in a business where accuracy, accountability, and trust are paramount, RPA is a precision tool to scale the scalability of financial operations and systems.
Specifically, the benefits of RPA for finance can be summarized in these crucial points:
Top Benefits of Integrating RPA in the Finance Sector
Here are the major benefits of implementing finance automation:
- Nearly Zero Startup Cost
Integrating Robotics Process Automation in the financial sector does not require any significant modifications in infrastructure, as it’s a layer that mounts on top of existing applications, i.e., the UI layer. Therefore, companies often skip the hefty startup costs.
- Saves Time, Effort, and Money
In a report by Accenture, RPA can minimize the time it takes to complete specific tasks by 90%. Likewise, robotics automation may realize cost savings of up to 80%.
- Minimize Human Errors
Humans are prone to mistakes, especially when manually processing invoices or sorting Excel spreadsheets. And, because financial RPA is systematic and streamlined in managing tasks, it eliminates errors.
- Compliance and Risk-Reporting
In the finance sector, remaining compliant needs a high level of precision and detail. Here, RPA comes into the big picture allowing companies to generate full audit trails for processes to ensure accuracy and minimize business risk.
- Scalability & Transparency
RPA enables companies to scale operations quickly. Also, RPA bots can seamlessly manage and respond to voluminous requests or any other programmable tasks in minimal time without needing a break.
Besides, financial processes are usually manual and consist of multiple channels and employees. So, there are high chances of errors and mistakes with no one claiming responsibility.
Fortunately, RPA changes it with its structured processes.
- Better Decision-Making
Robotic Process Automation can be seamlessly leveraged to gather real-time data (extracted from legacy and new data from existing systems); it offers more profound insights into challenges, inconsistencies, and growth opportunities.
The financial industry greatly relies on documents, and RPA is the quick fix to help manage and retrieve information and enable streamlined functioning.
Like outsourcing, data entry immensely helped in minimizing the need for in-house data entry personnel and ensuring optimum results; robotics also proved to be beneficial for organizations. For example, regulatory authorities adopt RPA at financial services companies because voluminous and repetitive tasks can be carried out quickly and with assured quality. Simultaneously, robotics will not replace the need for human skills and oversights in risk and compliance functions.
Instead, risk and compliance experts may welcome robotics to replace their mundane and manual tasks. They will also appreciate the insights bots can consider to reduce costs and maximize control and consistency. Also, they will appreciate the insights that robots can bring to their existing responsibilities.
All in all, RPA is the next big step in the evolution of the financial sector and should be considered to minimize costs and increase control and consistency of execution. Also, RPA can standardize tedious, manual tasks and ensure increased control and precision.
You must choose a reputable RPA consulting company that offers unparalleled RPA solutions for Finance. RPA experts can help you with the best practices to help you integrate workforce virtualization through robotics and bring about remarkable transformation and manifold revenue.
