| | April 20218IN MY OPINIONobotic Process Auto-mation (RPA) is the automation of eve-rything in a process lifecycle, which en-compasses bringing in inputs, undertak-ing processing and generating required outputs. RPA is today no more the new kid on the block. As per Gartner, global RPA software revenue is projected to reach $1.89 billion in 2021.Typically, to fulfill a process, there are two activities: 1) Rule-based processing requires a set of rules to be followed to make a decision. To cite an example: if a credit card dispute is less than or equal to $3, you approve it without any further check, as the cost of analysis is more than $3. 2) Cognitive processingrequires human judgement using many inputs and complex analysis techniques. To cite an example: marking a credit card dispute as fraud based on location, IP Address, previous transactions, and other relevant parameters. 100% of rule-based processing can be automated today using RPA. Cognitive processing is facilitated using Machine Learning (ML), and today RPA tools can integrate with ML pipelines to enable cognitive processing. Once a process is fully or partially automated, one or more bots can run the process, depending on the transaction volume at hand. Bots are your new team members and perform tasks based on how they are automated.RPA can be undertaken at individual desktops / laptops or using a server-based software with more robust controls. When done at a desktop / laptop it is generally called Robotic Desktop Automation (RDA). RDA is a great place to start automation, as it is extremely cost effective and typically has very good automation features.RPA delivers two key benefits: 1) Financial benefit by freeing up human resources who can instead be leveraged for higher value roles, reducing penalties by meeting SLAs, and generating revenue by enabling financial transactions 2) Non-financial benefit with bots includes ensuring 100% quality, provided you automate them right. Trends show that bots are generally 200% faster and can scale up within seconds, especially when there is a spike in transactions e.g. festival shopping. Back-office operations are generally an area where the first successes of RPA came in, due to the repetitive and manual nature of work. Processes such as Account Payables, Account Receivables, Customer / Merchant Onboarding (including KYC processing), Regulatory Filings and Dispute Management are examples of areas where RPA is leveraged. There are other areas in the financial industry where RPA is used. · Sometimes to fulfill an end-to-end process, multiple applications are used, which requires information to be manually fed from one application to the other. These are perfect use cases for RPA. Product companies generally also sell product bundles that are not connected with each RRPA IN ACTION IN THE FINANCIAL SECTORBy Pavan Kishore Kota Subramanya, Director, Intelligent Automation, FiservA renowned professional in artificial intelligence, investment banking, managing consulting and profitability delivery, in the industry for 20+ years and consultations for 10+ Fortune 500 organizations.Pavan Kishore Kota Subramanya, Director
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