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training, governance, comprehensive setup. But once core reason for the staff's lack of willingness to accept
it is in place, research says that banks will save 40-60% new technologies.Prior to engaging in the automation
in the first year of implementation making processes project, one should educate them regarding what
faster and much more efficient. software robots can and cannot do, and help them
understand that the bots are to be seen as helping, and
3. Agile Businesses
not as hindering, the current work roles. Moreover, one
With the growing technology penetration in every
industry and globalization, banks need to be more agile should invest in training employees regularly, as the
'automation era' will likely require them to acquire new
and flexible than ever. The effect of things happening
skills.
on the other side of the world can be seen in hours
instead of days. With RPA, banks get a chance to 2. Inability to automate end-to-end processes
prepare for any situation and respond in no time.Also, For the more complex processes, RPA tools may be
by freeing up the human resources from daily mundane insufficient for directly automating all the process steps.
tasks, more focus can be given coming up with innovative "Divide and conquer" is recommended way to go about
strategies to grow business. this. Redesign these sophisticated tasks, break them into
simpler parts, and start automation.
4. Growth with Legacy Data
Technology has allowed us to digitize the data from the 3. Insufficient assistance from the all
paper entries making it available for businesses. With department
RPA, banks are using legacy and new data to bridge the Relying solely on the IT department is among the
gap between processes. With the availability of data in common RPA challenges that should be actively avoided
one system allows creating faster and better reports throughout the automation project. Business processes
for the business strategies. require a Process Design Document for the pilot phase,
5. Reduced Business Response Time including workflow diagrams, data-specific business
Banks are incorporating Robotic Process Automation for rules (for various types of data), a comprehensive list of
technical exceptions that the operations unit may face
faster process execution and operational efficiency.
Research says that banks will be able to save 75% of during manual processing, etc. It is more likely that the
the cost while retaining the quality output. Banks like pilot paves the way for successful long-term
HDFC and ICICI are using RPA to bring down process development if the business team gives feedback for
execution time by around 60%. RPA is disrupting the bots' performance.
way banks are operating and the adoption will increase 4. Lack of effectively structured RPA implementa-
with the CAGR. tion teams

6. Leveraging the Existing Infrastructure As always, lack of structure is a pitfall. But the good
Implementing Robotic Process Automation does not news is that it is not too difficult to be fixed. "Effective
require setting up new infrastructure. The unique structure" arises out of clearly specified roles for the
quality of RPA technology allows it to integrate with any team members, sufficient knowledge about the
system irrespective of the development technology processes selected for automation, as well as not
making it applicable enterprise wide. Banks are already allowing resources to be shared among multiple ongoing
using RPA in operations, sales, Human Resources, projects.
Admin, Finance functions to optimize process with Sources:
efficiency and reduced cost.
1. Deloitte and CII paper on Banking on the Future.

Challenges in Adoption of RPA: 2. TCS paper on Why Banks must Bank on RPA
1. Managing employees' resistance 3. automationedge.com
The "robots will steal our jobs" narrative, often used as 4. www.cigen.com.au
a typical robotic process automation objection, is the 5. bfsi.economictimes.indiatimes.com. T

48 | 2021 | JANUARY | BANKING FINANCE