Process automation is one of the most widely used applications of emerging technologies and the primary initiative for any bank when deploying these new age technologies. In this endeavour, RPA and AI have been in the forefront with the former gaining significant traction amongst banks for its ease of use and proven efficiencies. The industry is also seeing a convergence of RPA and AI with cognitive RPA solutions making their play in the market.

Hexaware and IBS Intelligence have collaborated to study the trends and impact of RPA and AI technologies in the banking technology industry covering two of most active markets, Europe and the US.

Their whitepaper, “Role of RPA and AI in Transforming Banking Operations”, discusses how chatbots and robo-advisors have already disrupted the banking industry. Even with the shortage of infrastructure for deployment of AI technology as well as the skills to implement one, 67% of top 200 banks surveyed have actively deployed the technology.

While the adoption has been high, the paper highlights the challenges and imperatives that banks need to be wary of before starting their automation journey. The benefits of the automation can only be realized if the key processes are defined well in advance and selecting the right process to automate is critical. Apart from this, upgrading legacy systems to reduce overheads, assuring the regulatory compliance and selecting the right supplier becomes imperative.

With the rapid implementation of the robotic technologies amongst the financial industry, the future of banking shows a completely automated environment with minimal human intervention. However, as highlighted by the whitepaper, the adoption is not uniform and for many of the mid-sized banks with legacy system architectures, AI initiatives are still at ideation stage.

For more insights on the RPA and AI adoption in the banking industry – Please read the whitepaper on “Role of RPA and AI in Transforming Banking Operations”.

by Megha Bhattacharya
Market Analyst at IBS Intelligence