Intelligent automation could help financial services organisations to add up to US$512 billion to global revenues by 2020, according to a new report from Capgemini’s Digital Transformation Institute.
Capgemini’s Growth in the machine: How financial services can move intelligent automation from cost play to growth strategy report found that these organisations can drive growth if they deploy the right combination of robotics process automation (RPA), artificial intelligence (AI), and business process optimisation tools.
To date, financial services firms have used RPA and other automation tools to cut costs and increase operational efficiency. However, the innovators are now using automation in customer-facing applications as a revenue generator, rather than a cost saver. These organisations are implementing intelligent automation for various reasons – 55% are using it to increase customer satisfaction, 45% aim to grow revenue and 45% want to use the tools to remain competitive as more non-traditional ‘bigtech’ players enter the financial services marketplace.
On average, intelligent automation has helped 35% of financial services firms to gain a 2-5% rise in top-line growth, while over two thirds of organisations have witnessed at least a 60% improvement in customer satisfaction. Meanwhile, if a business uses AI-enhanced RPA, then it could achieve a 30-50% increase in cost savings .
Despite recognising the benefits of intelligent automation, 90% of the companies Capgemini surveyed have adopted intelligent automation at a large scale and only 25% have the technological maturity to implement cognitive automation technologies comprising machine learning, computer vision and biometrics.
Capgemini identified three key challenges that are preventing companies from implementing intelligent automation solutions: business organisation, technology infrastructure and talent. For example, 43% of companies cannot find a clear business case for automation, while 41%are struggling to persuade their leadership team to commit to a ‘cohesive intelligent automation strategy’. Around 48% of businesses said they do not have employees with the right skillsets to effectively implement these tools, while 46% said that they lack an adequate data management strategy.
“The most visionary financial services firms have leaders with a sophisticated view of the potential impact automation can have throughout their business – and they are already reaping the rewards,” said Anirban Bose, member of the Group Executive Board and head of Capgemini’s Financial Services Global Business Unit. “Hundreds of billions of dollars in automation-generated revenue is up for grabs in the coming years. Only those companies that deploy this technology in a way that looks beyond cost cutting and focuses on creating value for customers and shareholders will be able to win in the marketplace.”