New data from Juniper Research has found that Robotic Process Automation (RPA) revenues in banking will reach $1.2 billion by 2023. With an estimated revenue above $200 million in 2018, this represents a growth of over 400% over the period.
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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.
Leading 5 RPA Vendors
Juniper analysed around 20 leading RPA vendors in terms of AI capability, product innovation and financial services specialisation. The research ranked the 5 leading RPA vendors:
- Kofax Kapow
Despite being relatively small, the company with the most advanced AI-driven RPA solution alongside domain expertise in the financial industry is Kryon. Its biggest strengths are its hybrid automation solution and process discovery; enabling autonomous identification of tasks.
RPA Potential Still Untapped
The research claimed that Financial Institutions (FIs) are still at early stages of RPA implementation and many solutions are underperforming. 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.
Roboadvisors to See Strong Growth
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.