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Robotic process automation (RPA) is quickly transforming middle- and back-office operations in financial services institutions. Robots (bots) that are at the heart of RPA have been used in the past to mimic rules-based, process oriented human execution activities (e.g., document gathering, data retrieval, calculations), thereby automating workflow and decision-making for a variety of processes, including loan origination and collections. Recently, however, RPA has been implemented more widely across institutions to help drive efficiency and effectiveness. And the benefits are already apparent. By embracing complexity and leveraging this technology in new ways, financial services companies are accelerating their corporate performance (see Benefits of RPA).
As financial services institutions consider other operations or functions that could benefit from RPA, compliance stands out as a strong candidate, particularly the area of monitoring and testing. By understanding the opportunities for compliance automation, taking important preparatory steps, and addressing key implementation considerations, including performing appropriate cost/benefit analyses, financial services institutions can be better prepared to tap into RPA’s potential. Here are five insights on how RPA can enable compliance modernization in financial services:
Our take: RPA done right can be a valuable tool. Two considerations are worth keeping in mind in exploring RPA’s potential use in compliance. First, it is not a panacea; however, it can be a highly effective tool for enhancing process efficiency, and it is gaining wide acceptance in financial services institutions. Second, it’s impractical and unwise to try and automate everything; institutions will want to perform a cost-benefit analysis to determine whether undertaking an RPA effort makes business sense. Other levers, such as people and process initiatives, can also deliver big returns.
Finally, it can be helpful to remember new tools and techniques are emerging constantly that may provide previously unimagined opportunities. While something may be impossible today, who’s to say it will still be tomorrow?
Learn more about how organizations can leverage RPA to enable their compliance program by reading our full paper.