The Rise of Automation in Finance Sector: Opportunities and Challenges
The constantly changing era and evolution of technology have forced companies to think differently and change their working processes to meet business goals. Plenty of businesses, companies, and industries have taken advantage of the advantages of automation and increased ROI. McKinsey’s research says that automating business processes with RPA can result in an increase in ROI of between 30 and 200 percent in the first year of implementation. And McKinsey Research says that an average of 40 to 70% of the tasks can be automated across all industries.
The finance sector involves a deep and lengthy process of work, including monthly and yearly data processing, preparing account statements, and year-end financial statements. As the World Economic Forum stated, 43 % of time spent on tasks in the finance sector could be automated. Accordingly, automated financial workflows can reinvent the process and improve communication within an organization.
Advantages of Automation in the Finance Sector.
As technology changes, companies need to adopt the changes, and a constant drive to improve can make the financial sector successful. Even though major financial companies have not taken advantage of Robotic Process Automation, some of the early adopters have seen tremendous changes in the process, which are:
1. Reduces Error.
No matter how perfect the manual process is, some of the processes still contain errors. Research says that 75 to 80 % of manually created Excel have errors. Automating these small tasks can reduce human error and boost productivity.
2. Improved Productivity.
Automation helps to eliminate and reduce repetitive tasks, which allows other employees to focus on the core tasks that cannot be automated.
3. Improved Communication and Professionalism
The financial industry is more competitive, and one way to deal with the competition is to continue messaging and communication. Automation of finance processes can help to improve constant communication and messaging by following the rules and regulations through personalization and scheduling.
4. Saves Cost and Increases ROI.
By Reducing the error and eliminating repetitive tasks, Finance Automation improves efficiency, and accelerates processes, Research says that by using automation, Organisations can eliminate up to 90% of operational costs.
Main Financial Tasks That Can Be Automated.
There are many financial tasks that are already automated, but some tasks still need to be automated. Here, we would like to mention some of the main tasks that can be automated.
Still, some financial organizations are doing manual bookkeeping work. This can be automated.
2. Expense Management
Most financial organizations’ main task is to maintain their clients’ financial accounts; Today’s automation system helps with the steps involved in the expense management process
One of the major tasks of a financial institution is invoicing. Many of the processes for issuing and tracking invoices can be incredibly time-consuming, but these can be automated.
4. Accounts Receivable and Payable
Ensuring organization bills and invoices are paid and received and also maintaining client accounts involves lengthy work, which can be automated.
5. Tax Compliance and Payroll
Financial organizations maintain tax compliance and payroll jobs; accounting automation software can help automate some of the major tasks of the tax and payroll processes.
The future of the financial sector lies in automation, which can be beneficial for the financial industry as it helps to streamline processes and increase efficiency. Total Ebiz Solutions Pte Ltd, as recognized by Gartner for providing niche RPA solutions and also recognized by Forrester, strives to provide the best world-class robotic automation services to our clients in the financial sector. To know more about TeBS RPA Consulting and its capabilities, click here: https://www.totalebizsolutions.com/robotic-process-automation