The process-oriented work culture in the banking and insurance industries naturally lends itself to benefit from automating these activities. Organizations have started using Robotic Process Automation, or RPA as it is widely known, to automate repetitive and manual tasks. In doing so, RPA is helping banks and insurance companies reduce costs while improving transparency, quality and driving efficient growth.
In a survey conducted by PwC, 30% of financial institutions were leading or are on their way to enterprise adoption of RPA, 48% had started the RPA journey and had moderate experience with it while 22% were starting to explore their options. Even for organizations lagging behind in adoption, it is not too late to pursue the benefits of RPA.
Below are the steps to help you get started on a RPA journey:
- Identify workflows and opportunities for automation
Areas that are highly rule-based, structured and repetitive are good candidates for automation. What are the business processes that require a large number of resources and demand accuracy?
One of the common areas in the banking industry where RPA has proven to have a huge impact is Know Your Customer (KYC). It is a mandatory process banks have to follow for each of their customers. During account opening, the bank has to validate the identity of the customer before the account can be opened. According to a survey by Thomson Reuters, banks take an average of 24 days to complete the customer onboarding process. RPA can help with validating the customer’s identity, checking their address or past credit score and confirming that the customer meets all the compliance rules, significantly reducing the wait time for opening an account.
In the insurance industry, RPA has shown great promise in areas such as Underwriting where information needs to be collected from multiple sources for assessing risk associated with a policy and has traditionally been a prolonged process. In Claims Processing, which is a data and document-intensive process, insurance companies have the opportunity to shorten the claims processing cycle from days to hours after using RPA while simultaneously reducing human error.
- Align the RPA opportunity with a key strategic initiative for the organization
Aligning the opportunity with Strategic or Digital Transformation initiatives will expand the range of processes and tasks where RPA can benefit while providing clear prioritization and ties to larger corporate goals. This will provide the opportunity to take full advantage of the automation potential and allow the organization to derive a long-term benefit from RPA.
Support from senior management is also key, but RPA adoption must also have support from impacted line of businesses, centralized and specialized IT staff and internal users.
- Identify automation partners
The automation space is still evolving. When selecting an automation partner, look for proven expertise and ability to adapt to changing technologies. Ask if the automation partner uses an agile methodology with RPA implementations as it can help in exploring the potential benefits of RPA sooner.
- Develop a Proof of Concept
Developing a Proof of Concept (POC) can help test and prove the value of implementing RPA. During document capture, Optical Character Recognition paired with Machine Learning can be a great area for a POC, providing immediate and visible benefits in automatic document metadata tagging, document classification and routing to downstream workflows.
To learn how Viewpointe can help kick start your RPA journey, please get in touch. And once you are on your way with RPA, it’s time to start planning scalability; and broaden the use of RPA within the organization to derive long-term benefits!