RPA revenues set to reach $1.2bn by 2023
Written by Peter Walker
Robotic Process Automation (RPA) revenues in banking will reach $1.2 billion by 2023, according to analysis from Juniper Research.
With an estimated revenue above $200 million in 2018, this represents a growth of over 400 per cent over the period.
The research firm’s report suggested that when combined with artificial intelligence (AI), RPA can considerably lower compliance costs, raise productivity, and improve customer experience.
However, financial institutions are still at early stages of RPA implementation and many solutions are underperforming. This is mostly due to challenges surrounding unorganised and non-textual data, job processes that are hard to summarise and catalogue, and a lack of pre and post-implementation strategies.
Juniper found that firms must invest in the formalisation of processes, solutions that are able to understand the large range of unstructured data, and consider RPA as a strategic action in order to see benefits.
The report predicted that automated investment opportunities via robo-advisors will reach $4.2 trillion worth of assets under management by 2023 – growth of over 60 per cent per year.
Presently, incumbent banks are seeking to provide low-cost investment options while robo-advisors are being pressured to offer human advice.
Juniper stated that hybrid solutions remain the customers’ favoured option, so partnerships between incumbent banks and pure-play robo-advisors should be sought in order to provide optimal service.
As the robo-advice market begins to mature, several industry stakeholders have suggested consolidation will ramp up – particularly as many startups struggle with client acquisition and asset managers look to buy technology rather than develop it in house.