Fintech Evolution: RPA in the World of Finance

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Fintech Evolution RPA in
the World of Finance
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Fintech Evolution RPA in the World of
Finance
Fintech, short for Financial Technology, is the
innovative use of technology in the design and
delivery of financial services and it is
transforming the banking world as we know it,
says Henri Arslanian, the Chairman of Fintech
Association of Hong Kong. Henri names Artificial
Intelligence, peer-to-peer lending, big data,
blockchain, crowdfunding, digital payments, and
robo-advisors as some of the advanced solutions
under the Fintech revolution, driving one of the
biggest transformations in the financial
history. The digital transformation of BFSI
industry has opened new avenues for non-domain
specific players to enter the field. McKinsey
reported that Tech giants are set to grab up to
40 of the US financial services revenues from
the incumbent banks. The likes of Apple, Google,
and Amazon are predating over the loyal user
bases of existing financial institutions. Having
established their credibility and trust among the
consumers with high-end tech products, these
behemoths are causing a total mutation of the
industry. This ongoing transformation will have a
revolutionary effect on the entire sector,
causing maximum impact on the required human
workforce in terms of their personality,
backgrounds, and skill sets. The Fintech
revolution is behind the wheel of this digitally
transforming BFSI wagon, with RPA riding as the
shotgun. In their recent report, Forrester
predicted the staggering growth of RPA with its
market reaching 2.9 Billion by 2020. Even the
mere idea of Robots seemed too far-fetched and
fantasy-like at a time. To have it actually
integrated into our practical lives was
absolutely unfathomable. Yet, here we are today,
with not only automation, but smart, cognitive
automation and intelligent robots overtaking
tedious processes and increasing productivity by
eliminating the scope for errors.
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Fintech Evolution RPA in the World of Finance

• Real-life applications of RPA in Finance
• As per McKinsey, additional labor productivity
  from robotic process automation could equal the
  output of 110 million to 140 million full-time
  workers by 2025.
• This does not mean that your finance team will be
  replaced by mechanical, humanoid robots. Instead,
  RPA is like an invisible automated hand that
  effectively takes over the labor-intensive
  financial processes, allowing the human assets a
  window to breathe and focus on the tasks that
  require strategic understanding. By doing so, RPA
  not only enhances productivity, but also saves
  time and costs. Instead of disrupting the
  existing processes and wreaking havoc across the
  sector, the technology simply deploys bots
  capable of doing the exact same work with much
  higher efficiency.
• Some of the examples of RPAs practical
  applications in the financial processes are
• Onboarding of a new customer, employee, supplier,
  or vendor
• Regular, cumbersome data-entry and transcribing
  tasks
• Day-end, month-end, or year-end closing
• Consolidation and reporting
• Loan processing and handling
• Claim processing and tracking
• Customer complain processing

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Fintech Evolution RPA in the World of Finance

RPA deriving key business outcomes In addition
to imparting high effectiveness to the mundane
tasks, RPA is essentially streamlining the core
functions, and operations of finance industy. The
technology, as it exists, is simple to use and
does not require any extra employee training. It
enables businesses across the industry to gain an
in-depth visibility of the efforts and steps that
go into a process fulfillment. RPA creates a
visual pattern by consolidating the steps in the
path it takes. This offers a birds-eye-view to
the day-to-day processes, allowing the businesses
to detect gaps and analyse inefficiencies in
them. By providing the data required to make
informed decisions, such insights help
organizations to optimize and align their
existing processes to achieve the desired
business goals. The speed and efficiency of RPA
also reduces, if not completely eliminates, the
risks and threats caused by human errors. With
increased accuracy in the performed tasks, RPA
also facilitates timeliness in reporting,
financial closures, accounting, and
transactions. Implementing RPA into financial
processes RPA implementation require a
step-by-step approach and a few proactive
measures. By prioritizing the workflow based on
importance and ROI, the organizations should
identify which processes can be 100 automated,
which processes require some level of manual
intervention, and which processes cannot be
completed without
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Fintech Evolution RPA in the World of Finance

human assistance. Doing so will help lay down a
roadmap for RPA implementation. For the
organizations to fully leverage the benefits that
RPA has to offer and to ensure a successful
implementation, they need to understand the scope
of requirements and business objectives. Since,
RPA does not disrupt the established processes
and simply automate them, it is critical to
standardize the workflow before deploying the
bots. Post-standardization, the next step is to
perform a comprehensive analysis of available RPA
tools to determine which best aligns with the
overall goals. After this comes defining RACI
matrix, setting up the governance mechanism, and
establishing the metrics to measure the RPI
efficiency. By standardizing a change management
procedure, businesses can obtain support and
active collaboration from all those who will be
impacted or influenced by the RPA
implementation. BOT creation and
maintenance When the tools are decided,
processes are identified, and workflows are
standardized, the next stage involves development
of BOT framework that will be deployed for
process automation. A process validation
checklist proves to be of great help for tracking
and ensuring that the implementation roadmap is
properly being followed. By performing unit
testing on every BOT deployed for individual
automated processes, businesses can proactively
determine the gap areas and take the required
remedial actions before the final deployment.
After validating the
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Fintech Evolution RPA in the World of Finance

integration of workflows for identifying
loopholes and taking corrective measures, the
BOTs can be deployed in the business environment
for use. Even after the final deployment,
continuous maintenance and support is optimize
the BOTS according to any changes in the
workflow, application levels, BOT configuration,
production environment, or framework. Cignitis
expertise in Fintech testing and RPA rollout has
helped organizations reduce processing costs by
up to 80. Cigniti Technology has a dedicated
TCoE for financial application testing domain.
Our testing consultants thoroughly understand
systems, network and software architecture, and
our frameworks are designed after rigorous
research by testing experts. More than 50 of our
testing professionals are Certified Software
Testing professionals with CSTE and ISTQB, and
are equipped with relevant Industry
certifications while having in-depth domain
expertise. Contact us today. Read Full Blog at
https//www.cigniti.com/blog/rpa-fintech-applicat
ion-testing/
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