RPA in Banking: The Different Adoption Approaches
Many global banks started the automation journey early on and are now streamlining their Robotic Processes Automation (RPA) initiatives, while quite a few regional banks are still testing tools and trying out RPA projects in specific areas. We see a variety of adoption approaches, and here we introduce some of them.
Among our clients, we see the following different approaches being taken:
- Proof of concept (PoC): Almost all banks that began their automation journey in the last two years started with small PoC projects. In most cases, choosing the correct PoC had a bearing on how quickly the RPA initiative could be scaled.
- One line of business (LoB) at a time: Some banks start in a single LoB that exhibits high operational costs but simple processes. This approach can help organizations prove benefits quickly and manage change effectively.
- From simple to complex processes: Others have identified a small set of simple, rules-based processes that are common in multiple LoBs and that can be automated, and then measured their success across the organization. This approach has advantages over the previous two, but it needs enterprise support upfront and takes longer to plan.
- Biggest impact area first: Several banks have begun by identifying a single process that has a bigger impact when automated in terms of cost savings or efficiency. This approach has worked best when a bank wants to prove the real impact of automation and create a funding model for strategic initiatives through cost savings gained from automation.
With so many diverse and innovative uses of RPA in use today and planned for the future, it’s tempting to rush in, identify a PoC opportunity and start automating processes. Yet a more measured approach is advantageous, especially if it’s considered in the broader context of digital business. If you’re curious to learn more about Cognizant’s view on RPA in banking, please go on and read about where RPA is most beneficial and what 7 pitfalls to avoid.