The market size of robotic process automation in banking business, including software and services, is predicted to touch $900 million by 2022 from current $214 million, expanding over four times during the period, a new report from Juniper Research says.
Robotic process automation or RPA was traditionally limited to replicating simple or repetitive tasks that require high accuracy, such as data entry. The market currently represents a ‘perfect storm’ created by the convergence of chatbots, AI-driven RPA software and banks’ digital transformation strategies. The research found that this has created renewed interest in RPA for financial services, driving market spend.
The research found that where AI is combined with automation tools, the potential for RPA in the banking industry is far-reaching. Use cases include compliance, digital on-boarding, and personalised cross- or upsell opportunities.
Juniper predicts that banking and financial services will represent 34% of the global RPA market by 2022, with regulatory burdens and a desire to reduce offshore outsourcing cited as key drivers. This estimate is supported by Juniper’s RPA cost analysis, which revealed implementation cost-savings of up to 40% over a baseline ‘do nothing’ scenario.
“Intelligent RPA makes for a compelling case, in terms of flexibility as well as efficiency,” noted research author Steffen Sorrell. “Incumbents who are unable to harness, and connect data between chatbots, banking API use and AI-driven RPA software will soon lose any competitive edge.”
Juniper’s new research, Banking Automation & Roboadvisors: Cost Analyses, Impacts & Opportunities 2018-2022 found that there are primarily 5 robotic process automation vendors that are currently leading the market in delivering advanced cognitive, or intelligent RPA solutions. They are IP Soft, Antworks, Pegasystems, Wipro and Workfusion.
The study highlighted IP Soft and Antworks in particular for their impressive integration of AI into their RPA solutions, using both knowledge-based and pattern-recognition AI to generate dynamic process execution.
Robotic process automation solution is a set of advanced capabilities that uses software robots to automate, manage and execute high volumes of time-consuming business processes around-the-clock each day.