Intelligent automation ‘worth $512bn to FS firms’
Written by Chris Lemmon
The financial services industry could expect to add up to $512 billion to global revenues by 2020 through ‘intelligent automation’, robotics process automation (RPA), artificial intelligence (AI) and business process optimisation.
This is according to a new study from Capgemini, which surveyed 1,500 senior executives from 750 global organisations. It found that if RPA is deployed effectively, a business can realise a 10-25 per cent increase in cost savings – potentially scaling to 30-50 per cent with AI-enhanced RPA.
The report found that, on average, 35 per cent of financial services firms have seen a two to five per cent increase in topline growth from automation, with faster time to market and improved cross-selling efforts as the key factors that influence gains. In addition, 64 per cent of organisations have seen improvement in customer satisfaction by more than 60 per cent through intelligent automation.
More than half of the surveyed firms are now focused on increasing customer satisfaction through automation, while 45 per cent see growing revenues as a key objective.
The threat of non-traditional players is also weighing heavy on the mind of financial services firms, with 45 per cent of respondents believing that BigTech players, such as Amazon and Google, will be their competitors in the next five years.
Adoption of automation however has been slow, with just 10 per cent of surveyed firms implementing the technology to scale.
Anirban Bose, member of the group executive board and head of Capgemini’s financial services global business unit, said: “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.”