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Robotic Process Automation in Finance

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The pandemic has accelerated digital transformation across the world in all organizations alike. Financial institutions around the world are under tremendous pressure to improve efficiency, reduce costs and increase productivity. Indeed, there is now a huge global demand for the financial services industry to completely change from traditional, older business models. In response, automation should now represent a major part of the evolution, with Robotic Process Automation (RPA) in particular set to play a major role in the functioning of financial institutions in the coming years.

As technology continues to evolve at a rapid pace, nearly 80% of financial leaders use or plan to use the Robotic Process Automation, according to a report by Gartner. The same report by Gartner states that Robotic Process Automation Can Save Finance Departments 25,000 Hours of Avoidable Work Annually”.

Robotic Process Automation (RPA) Definition

We’ll begin by taking a closer look at what Robotic Process Automation (RPA) is:
RPA is a technology that automates business processes by instructing a software robot to perform rote, repetitive, or mundane work based on logic. It is not a literal robot that we call a robot, but rather software that can either run on a physical machine or not.

Why does finance need RPA?

With RPA in finance, you can gain the most valuable commodity – time.

It is not uncommon for finance departments to be stretched thin both in terms of time and resources, and everyone from sales to the C-suite requires structured financial data and astute assessments that can lead to timely business decisions.

In the finance industry, you need accuracy and precision, and no matter how well you train and support your employees, they are still prone to stress, fatigue, etc.- all of which can cause costly errors. If you’ve ever maintained spreadsheets, prepared reports, or done manual data entry, you know that there is a lot of scope for mistakes. It is possible for RPA bots to emulate human actions and produce results that are 100% reliable.

As finance automation evolves, a highly saturated BFS sector must stay relevant and competitive. Automating manual processes with RPA software can decrease operational costs, improve accuracy, and satisfy compliance mandates while increasing operational efficiency.

Protiviti reports that hundreds of financial institutions have successfully used software bots. Three-quarters of the companies in the study consider themselves RPA leaders, meaning they have automated virtually every function within their organizations.

RPA Uses Cases in Finance :

Let’s look at a few finance use cases to see how RPA is used in the real world.

Process Purchase Orders: Purchase orders can take a lot of time to process and to send for approval, causing the business to miss out on essential goods and services. A RPA bot could be configured to scan POs and identify key information, input them into the appropriate system and set up approval requests.

Reconciling accounts: It can take a lot of time out of a clerk’s day to compare the balances on critical business accounts because they have to log in and out of different systems. A good audit requires accuracy. The basic elements of these tasks can be handled easily by RPA robots, with only human input required when data does not align as expected.

Data Recording: Data recording is one of the best uses of RPA in accounts. Collecting and entering data can be tedious. As a result, companies can lose huge amounts of money through human errors. Using robotic process automation (RPA) services, companies can record data efficiently, accurately, and with no error. You can make use of an RPA platform to add triggers to enter data into the appropriate sheets. By eliminating the need for people to manually check the transactions, you can save a lot of money.

Enhanced financial reporting: It is important to provide accurate information, and detailed reporting is essential to that information flow. Robots can handle many of the mundane financial tasks in the office, so employees can dedicate more time to producing the data insights necessary to make smart decisions.

To view all 50+ RPA use cases across 8 industries, download our Whitepaper on RPA here.

Benefits of RPA in Finance

1.Cost effective 

It is estimated that using robots can reduce operating costs by up to 25-50%. Robots can operate 24/7 tirelessly. Automation can help you start getting ROI in a short period of time and from then on, it’s all about profit only! With RPA, cost savings are almost instantaneous.

2. Increased efficiency

The first benefit of RPA is that it can very quickly increase efficiency in business processes when implemented correctly. The RPA can perform a number of mundane tasks that humans would prefer to avoid, in a much shorter period of time. Basically, RPAs can do the type of work we wish we could have a robot do on our behalf – think copying, pasting, and transferring data.

3. Advanced Analytics

One of the commercial benefits of Robotic Process Automation is advanced analytics. Businesses can collect valuable data using RPA, which can be used to make informed decisions. Therefore, advanced analytics allows you to improve your product / service in the targeted market.

4. Better customer experience

Meeting customer needs is not an easy task. One bad incident is enough to break their trust in you and drive them away to your competitors. In addition, customer needs often change over time, making it difficult for you to keep up with their changing demands. RPA can increase processing time, ensuring you provide the best and fast service to your customers.

5. Increased Security

RPA bots are designed to perform specific tasks. Because of this, we have one advantage to invest RPA in business – security. Since Robotic Process Automation operates at a granular level, there is no risk of data leaks from one side to the other.All data access is fully documented and controlled.

6. Reduction of errors

Tasks that require human interaction inherently carry a risk of human error. The use of automation substantially reduces or eliminates any risk of such errors, assuming that the data input is reliable. It’s impossible for robots to get tired, hungry, or stressed, all things that generally contribute to human error. Additionally, robots can continue working long after a day’s work is done, so they can support the rest of an organization’s day-to-day processes in the background.

7. Expand your capacity without hiring more staff

Using RPAs to automate repetitive tasks will allow you to scale up your financial operations without having to hire additional staff to handle the increased workload as they can work 24/7.

8. Zero infrastructure cost

Thanks to RPA’s capabilities of UI automation, it does not require any major changes to the infrastructure in financial services. In the case of cloud-based RPA, the hardware and maintenance costs are further reduced. Its non-invasive nature makes it a great choice of solution for those who do not want any changes to be made to their legacy system.

Eastern Software Systems and RPA in Finance and Accounting

RPA has already been implemented by several banks and institutions, as it can be used as an opportunistic solution for a point in time, which is quicker to implement than large scale transformations.

Automating manual, repetitive, time-consuming tasks with Robotic Process Automation can be a truly transformative technology for the banking industry if implemented properly. As a result of automating such mundane tasks, productivity would increase, the error rate would be reduced, and turnaround times would be reduced dramatically. Businesses can achieve true digital transformation with ESS. Due to its position as a leader in the space of digital transformation, it is well-suited to assist businesses in driving transformational efforts through automation.

If you are ready to see how RPA and Eastern Software Systems can help you embark on your digital transformation journey, then schedule a call with one of our RPA experts today!

You can reach out to us at marketing@essindia.com

 

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