How RPA is Transforming the Future of Finance?

"I predict that, because of artificial intelligence and its ability to automate certain tasks that in the past were impossible to automate, not only will we have a much wealthier civilization, but the quality of work will go up very significantly and a higher fraction of people will have callings and careers relative to today."Jeff Bezos

The finance sector is one of the most important industries in the world. It is responsible for managing the money of individuals, businesses, and governments. In recent years, however, the finance sector has been facing a number of challenges. RPA is helping to address these challenges and transforming the future of finance. RPA is a type of technology that automates a process by using computers to do the work of humans. It is not just for financial firms, but for any company with repetitive tasks that can be done more efficiently using RPA.

Major drivers for the adoption of RPA in organisations.

• The need for efficiency. The need to automate repetitive tasks allows organisations to save time, money and resources. It frees up employees to focus on higher-value tasks that can be more profitable.
• The ability to automate complex tasks. RPA can be used to automate tasks that are complex and time-consuming.
• A better customer experience. The ability to interact with customers in a more personal way, that is more convenient for the customer, who does not have to leave their home or office.
• Data security. The reduction of risk and the ability to create a more secure environment in which customers can interact with their business.
• Cost reduction. RPA allows organisations to reduce the cost of development, maintenance, and support of applications.

How does RPA work and what are the benefits?

RPA is a technology that uses computers to do the work of humans. It can automate processes in many industries including financial services, manufacturing, healthcare, utilities and others. RPA could be used to automate routine processes in the financial sector. It can help firms save money by eliminating labour that is repetitive and costly. RPA is also helping financial firms to achieve greater efficiency in their operations and improve customer service levels.

• Cost Savings: RPA can save companies money by eliminating the costs associated with hiring and training new employees. This is because RPA's performance can be monitored and improved automatically, without human intervention. It also eliminates the costs associated with hiring and training new employees.
• Efficiency Gains: RPA can also help to improve a firm’s efficiency in operations by improving the quality of customer service. It can help firms to automate routine processes, such as simple data entry and communication with clients.
• Improved Accuracy: RPA can also improve accuracy by automating repetitive and mundane tasks. This is because the software will only allow for one error to be made, instead of multiple errors.
• Increased Visibility: RPA can also improve visibility for the customer by providing them with a more transparent view of their business. This will help to streamline operations and reduce costs, while improving accuracy and efficiency.
• Scalability: RPA can also help to achieve scalability by reducing the need for human resources. This means that the software will be able to run on a smaller budget, and will be able to scale in response to demand.

What are the challenges of implementing RPA in finance?

As with any new technology, there are several challenges that RPA will encounter when first introduced. These challenges can be broken down into four categories:

Development Process: Since RPA software is not a new concept, the development process will be similar to what has been used in the past. There will be a platform to develop software on, and the RPA companies will provide training.?The development process is dependent on various factors such as the type of software that will be developed, the source code language being used, etc.

Deployment Process: RPA software will be deployed in a similar fashion as current software, which means that there will need to be human resources on hand to support the deployment process. RPA has been used by different companies for different purposes with varying success.

Training Process: Since RPA software is relatively new, there will need to be adequate training on how to use it.

Perception: The perception of RPA will take some time to change, even though the benefits should be readily apparent.

How can businesses get started with RPA?

RPA is a new concept and therefore many businesses are hesitant to jump on board. The following steps can help businesses get started with RPA:

Step 1: Educate the business about RPA: Businesses should educate themselves about RPA.

Step 2: Build a team that focuses on RPA: Once the business understands the benefits of RPA, they should build a team of specialists who can help them build, deploy and support their RPA.

Step 3: Build a vision: Once the team is built, it's time to build a vision for how RPA can be used to save costs and increase productivity.

Step 4: Conduct a proof of concept with the business: This step should take place before any implementation takes place.

Case studies of RPA in finance

Below are the real examples of adopting RPA in the finance function of various sectors.

1) Example of using RPA to automate Accounts reconciliation

RPA Case Study- NHS Wales: In order to improve the accuracy and efficiency of the accounts reconciliation process, NHS Wales turned to robotic process automation (RPA). RPA is a software that automates routine tasks, such as data entry or copying and pasting. This allowed NHS Wales to reduce the time spent on reconciling accounts from weeks to days. In addition, the RPA solution was able to identify discrepancies that human accountants may have missed. As a result, NHS Wales was able to improve the accuracy of its financial reports and save money on labour costs.

2) Example of using RPA to automate asset management - RPA Case Study- Tesco:

In this case study, we will explore how the supermarket chain Tesco utilized robotic process automation (RPA) to improve their asset management process. Prior to using RPA, Tesco relied on employees to manually track and update information about their assets. This process was error-prone and time-consuming, resulting in wasted time and money.

RPA was implemented to automate the asset management process. This involved creating a virtual “bot” that would automatically collect and update information about assets as they were added or removed from the inventory. The RPA bot was able to significantly reduce the amount of time needed to manage assets, resulting in cost savings for Tesco.

3) Example of using RPA to automate investment decision making - RPA Case Study Barclays:

RPA is being used by Barclays to automate the decision-making process for certain investments. This has resulted in improved accuracy and efficiency, as well as freeing up time for employees to focus on other tasks. RPA is able to perform complex calculations quickly and accurately, allowing Barclays to make better decisions faster.

4) Example of using RPA to automate financial planning - RPA Case Study Citibank:

RPA is being used by Citibank to automate the financial planning process for certain investments. This has resulted in improved accuracy and efficiency, as well as freeing up time for employees to focus on other tasks.

5) Example of RPA to automate tax reporting - RPA Case Study - Intuit

Intuit is a company that provides tax preparation software and services. It faced a challenge in preparing and filing 1099 forms for its customers. The process of preparing the forms was manual, time-consuming, and error-prone. Intuit used RPA to automate the process. The RPA robots were able to prepare and file the forms accurately and quickly. This saved Intuit time and money and improved its customer service.

6) Example of RPA to automate fraud detection - RPA Case Study - HSBC

HSBC is a financial services company with over 100,000 employees. It uses RPA to reduce the time it takes to detect fraudulent transactions and fraudsters. In particular, RPA is used to automatically detect fraudulent transactions. According to HSBC’s fraud detection report for the year 2018, RPA was able to detect over 97% of all fraud attempts. It helped in detecting more than $3 billion in losses.

7) Example of RPA to automate repetitive tasks - RPA Case Study - Target

Target uses RPA to reduce the number of physical stores across its chain. It has been able to reduce the number of stores by 40% in the last two years by using RPA. The company has been able to automate and accelerate the tasks of its inventory management, which is one of its leading business lines.

Final Thoughts

The adoption of RPA has been in large organisations but smaller companies that are more technology-focused can also benefit. Currently, small organisations are not able to get RPA solutions to the scale that they need. This is because they do not have enough resources, and are not able to afford it. However, as the world changes, many of these companies will find themselves stuck in a digital rut. Small businesses without the resources to implement RPA will find themselves at a disadvantage in relation to bigger companies. Brands such as McDonald's, Virgin and Starbucks have already begun to use RPA technology to reduce the number of human resources that they need. As more companies begin to implement RPA, it will be easier for small organisations to get started with the technology. In the future, there will be an increase in the use of RPA across industries. There is a shift towards automation and it is predicted that by 2025, half of all jobs will be replaced by robots. The rise of automation could lead to the downfall of many industries. The future is bright for RPA.

The future of RPA and finance is exciting, as smarter robots are able to handle repetitive tasks that humans find difficult. This will allow employees to spend more time on important tasks, like making decisions and solving problems. In conclusion, RPA is revolutionizing the future of finance by automating tedious and time-consuming tasks. This is making the finance process more efficient and cost-effective. As RPA technology continues to evolve, it is likely to have a positive impact on other industries as well. Businesses should consider implementing RPA in their finance departments to reap its many benefits.

Can be reached via email - [email protected] or a private message on LinkedIn if you would like to discuss this topic further.

You can also visit my Blog for other articles: www.financepsyche.com