Revenues from Robotic Process Automation in banking and financial services, will grow by an estimated 400%, from $200m in 2018 to $1.2bn in 2023, according to Juniper Research.
Juniper's new research, Banking Automation & Roboadvisors: Vendor Positioning, Strategies & Forecasts 2019-2023, found that when combined with Artificial Intelligence (AI), RPA can considerably lower compliance costs, raise productivity, and improve customer experience.
The research claimed that Financial Institutions (FIs) are still at early stages of RPA implementation and many solutions are under-performing. This is mostly due to the 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 FIs 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.
Juniper predicts that automated investment opportunities via roboadvisors will reach $4.2 trillion AUM (assets under management) by 2023; growing at over 60% per year. Presently, incumbent banks are seeking to provide low-cost investment options while pure-play roboadvisor companies are being pressured to offer human advice.
Juniper found that hybrid solutions remain the customers' favoured option, and therefore suggests that partnerships between incumbent banks and pure-play roboadvisors should be sought after in order to provide optimal service.