Erica works for a big bank. She is a chatty assistant who helps the customers of Bank of America with their queries. Sometimes, she helps them proactively by suggesting how to save more. According to her bosses, she has every customer’s back, and that’s more than what you can expect from a banking assistant.
Erica is a ‘virtual assistant’, a bot. In the era of self-service and digitization, Erica represents the next step for the Banking and Financial Services (BFS) industry. Robotic Process Automation (RPA) has already made a mark in rule-based operations. Banks can conduct complex and high-value transactions without errors as RPA brings with it the promise of accuracy. Speed, that second trait that RPA possesses, can help banks manage huge volumes quickly whenever required without errors.
But apart from customer service, bots like Erica can help BFS companies to manage risks. In a highly regulated and ever-changing business environment, risk management is a complex operation that can drain time and money. The minutest error or slip up can be a costly proposition.
By applying RPA for inference-based operations, BFS companies can identify changes in risk exposure and take preventive measures. It can also help assess the credit limits thus enabling companies to take remedial actions when there are infractions. By leveraging RPA, companies can review and track accounts, and highlight anomalies for further examination. They can also track and automate disclosures and transfers.
From keeping audit trails in line with the regulatory and compliance requirements of a country and business to controlling fraud, RPA can have a major impact on risk and governance in the BFS sector. As we move into a data-driven business world, it can help companies to run comprehensive checks on the quality of the data as well.
Machines and humans have co-existed for centuries and there’s no denying the role of technology as one of the driving forces of human civilization. The idea that robots could replace humans has been feared for long, but machines have created new jobs and this is the circle of modern civilization. The new wave of technology represented by bots like Erica open the doors to innumerable possibilities that BFS companies can leverage for an exciting future.
A recent report by McKinsey & Company on emerging and disruptive technologies predicts that automation technologies such as RPA will have a potential economic impact of ~USD 6.7 Trillion by 2025.