Robotic Process Automation(RPA) in Finance
We've all been terrified that one day, robots would take away all of our employment. The day is not far away it seems. Here comes RPA. RPA is a software technology that allows users to develop software robots, or 'bots,' that can learn, imitate, and execute rules-based business processes. Users may construct bots using RPA automation by monitoring human digital behaviours. Show your bots what to do, then leave them to it, it’s that simple. Finance may not be the first application that springs to mind when you consider RPA.
It is one of the most interesting commercial technologies today. While RPA is currently used in industrial manufacturing in large armatures and robotic fabricators to build anything from vehicles to small plastic components, automation is increasingly penetrating the back office as well. Traditionally, automation has had an impact on a variety of office operations. However, many financial operations have remained manual, either due to a lack of acceptable solutions or an organisational apprehension about putting critical functions in the hands of robots. Because no one package can perform all of the essential activities, managing a company's finances generally necessitates a diversified range of software tools. Because of the separation of systems, there is frequently a substantial quantity of boring, repetitive work—work that is suitable for automation via RPA. It reduces operational expenses by automating transaction-heavy, labour-intensive operations such as reconciliation. Digital employees can obtain and combine data from numerous back-office systems, reconcile amounts and act in real-time to address issues. Financial organisations may use RPA to have consumer behaviour data automatically distributed to particular personnel inside the business.
RPA assists financial services businesses in managing risk and meeting industry regulatory needs. Auditors and financial stakeholders appreciate the prescribed, replicable and accurate nature of RPA, along with the audit trail the bots keep of their work. Because of RPA's efficiency and cost advantages over outsourcing, businesses may be able to retain their data in-house and under their direct control. With its plethora of precise workflow procedures, susceptibility to regulatory demands, and need to minimise risk, RPA appears to be tailor-made for the financial services sector.
RPA allows you to increase production, reduce expenses, and simplify compliance. It gives you and your team more time to act proactively and focus on strategic work that brings you joy and provides value to your organisation. Accuracy is crucial to businesses in all industries, but highly regulated, high-risk, high-return industries like financial services are perhaps more reliant on process accuracy than others. RPA technology is exceedingly accurate. Mistyping and formatting errors are no longer an issue. Unlike humans, who may miss a step by accident, change the sequence of steps, or add other irregularities, an RPA robot accomplishes tasks without bias or variance. RPA will support consistent application of rules and adherence to control frameworks as long as you define your workflows clearly and accurately. Remember that humans still have control over robotic accounting, and the right rule configurations ensure there is someone to double-check any potential exceptions.
Finance teams have been using robotic process automation (RPA) for years to increase the speed, efficiency, and accuracy of certain processes. RPA is now being taken to the next level by merging it with machine learning (ML). According to a recent Gartner study, around 80% of finance leaders have already deployed or plan to implement RPA. You hate it or love it, it will do everything it can.
Authors: Ramya Sehgal and Tushasp
Illustration by: Sai Aditya