Here are 7 Questions Answered About ROBOTIC PROCESS AUTOMATION (RPA):
1. What is Robotic Process Automation?
RPA is a new technology that enables software robots to mimic the actions of people using the applications and systems with which they are interacting. A robot can perform repetitive tasks as well as gather information from disparate sources, enabling financial institutions to accomplish more with less headcount, reducing costs while improving customer satisfaction and market reach. With RPA, banks can enable application-to-application automation for specific processes as well as task orchestration across multiple applications and business functions. In other words, instead of replacing humans – who respond to exceptions and deviations – RPA supports them by completing the routines and following up on high-priority exceptions. The application we use at Trade plus are called Automation Anywhere and has been used by multiple banks around the world.
2. What is the difference between RPA and Artificial Intelligence (AI)?
RPA uses machine learning to emulate human behavior, such as how we would fill out a web form or complete an online banking task. AI is different in that it incorporates machine learning and reasoning capabilities to achieve situational awareness – i.e., identifying anomalies within data – and then making decisions based on those observations, which could be to escalate for further review, automate responses, create exceptions and deviations, etc. The application we use at Trade plus are called Automation Anywhere and has been used by multiple banks around the world.
3. Is this another buzzword like “big data”?
Maybe! Some think that RPA is a bit like “big data” in that you can use it to do anything and everything (and project infinite potential). We definitely see the appeal and similarities – but our approach is different. First, we focus on certain technologies, such as Robotic Process Automation, because they have been tested and have proven return on investment. Second, we help clients solve specific business problems – e.g., increase capital velocity or reduce operating expenses – rather than just throwing new technology at problems without thinking them through first. For example, if increased capital velocity is not a high priority for a company – but cost-cutting is – then we would pursue a different solution other than RPA that uses big data analytics to automate processes reducing operating expenses.
4. What industries will RPA impact the most?
We think RPA is highly relevant for banks, financial services companies and insurance providers. And we’re already seeing this industry embrace robotic process automation to drive efficiencies at scale, whether that’s reducing processing costs or increasing capital velocity (i.e., loans). However, other industries are rapidly adopting RPA as well based on the overall business case – e.g., labor arbitrage opportunities. These businesses can also use RPA to automate processes across different systems to improve end-to-end customer interactions by enabling a 360-degree view of an account or a client through a single application interface. For example, several retail chains have used robotic process automation to reduce credit card transaction processing costs – and to improve the customer experience by resolving call center calls in seconds instead of minutes.
5. What are some examples of RPA?
Some examples include: handling online banking requests through a chatbots; automating requests for account information across multiple applications; completing routine or time-consuming tasks such as on boarding customers, checking for potential credit risks and updating loan portfolios; and much more. The possibilities go beyond what we can share here but we’re happy to discuss them further if you reach out to us!
6. How does the technology work?
RPA uses machine learning to emulate human behavior, such as how we would fill out a web form or complete an online banking task. In other words, instead of having a person manually complete a task – e.g., confirm your bank account information before transferring money from your checking to savings account – RPA will learn those steps and then automate them, which can help reduce costs associated with labor. This is typically done through a graphical interface where a developer builds the process flow by dragging and dropping different icons within the program – for example, verifying your name or address – rather than writing code.
7. Is there an app for that?
Yes! We have created our own application called Automation Anywhere to demonstrate how this works in practice – you can download it here. In fact, we’re also planning to release even more functionality over the next several months as part of our Sales force integration, so stay tuned!
Conclusion:
RPA basically supported by the technology that allows non-technical users to create business applications, which can perform tasks that previously required human intervention.
