FINANCIAL INSTITUTIONS COULD INCREASE REVENUE BY $512 BILLION WITH AUTOMATION: The financial services industry could potentially add $512 billion in global revenue by 2020 with the use of intelligent automation, according to a new report from Capgemini. Of this sum, $243 billion is expected to come from the insurance industry, while the other $269 billion will likely come from banking and capital markets. Intelligent automation is defined as a combination of robotic automation processing (RPA), AI, and business process optimization to achieve strategic business objectives, such as software that handles high-volume, repeatable, and rule-based tasks. While 52% of companies are focused on cost savings when automating processes, 45% actually look to grow revenue with it, and 55% want to increase customer satisfaction, the report found.
Here are two key findings from the report:
- Only 10% of companies have implemented intelligent automation across all geographies and processes. Seventeen percent are still in a pilot stage, while the vast majority have started to use automation in some business areas. With time, more companies will expand their automation to more operations.
- The level of automation is still very basic. Most companies are still using very limited amounts of advanced AI for their automation processes. A good number (40%) have adopted RPA, while 37% use natural language processing. However, currently, only 4% of companies have implemented machine learning, which is a more advanced form of automation. Machine learning is a more complicated technology, and it therefore takes longer to build and test solutions that leverage it.
Being able to boost revenue will likely increase adoption of automation. While the ability to cut costs is strong motivation to increase automation, being able to generate more revenue will probably push firms to accelerate their efforts in the area. As banks are largely looking to increase their customer satisfaction with automation, we will probably see many solutions launching that are consumer-facing.