The financial services industry is using a combination of robotics process automation (RPA), artificial intelligence (AI), and business process automation to bolster global revenues and customer satisfaction, according to Thursday report from Capgemini's Digital Transformation Institute.
Capgemini surveyed 1,500 senior executives from 750 global organizations—69% of which were in banking sectors, with the rest in insurance—to gain insight into the impact of intelligent automation in financial businesses.
Intelligent automation is used to both increase revenue and drive down costs, said the report. By 2020, the financial sector could add $512 billion to their global revenues, and could see a 10-25% increase in cost savings, according to Capgemini's press release.
SEE: Artificial intelligence: Trends, obstacles, and potential wins (Tech Pro Research)
On average, more than a third (35%) of financial services firms have already seen a 2-5% increase in revenue from automation, with quicker time-to-market and better cross-selling as major factors, said the release. In other sectors, 64% of organizations have seen a 60% improvement in customer satisfaction after implementing intelligent automation, said the report.
With the rise of customer satisfaction in other segments, financial services firms are more motivated to try implementing intelligent automation on the front line, said the press release. Currently, only 10% of companies have fully integrated this technology, struggling with business, technology, and customer challenges, said the release. But the companies that are able to deploy this technology are reaping the rewards.
"The most visionary financial services firms have leaders with a sophisticated view of the potential impact automation can have throughout their business. And they are already reaping the rewards," said Anirban Bose, head of Capgemini's financial services global business unit. "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."
The big takeaways for tech leaders:
- Intelligent automation could cause the financial services industry to see a $512 billion increase in global revenues by 2020 — CapGemini, 2018
- Other business sectors saw a 60% spike in customer satisfaction after implementing intelligent automation, inspiring financial services to follow suit. — CapGemini, 2018
- From Static Dashboards to Smart Analytics: Automating Decisions and Recommendations (TechRepublic)
- The greatest resistance to Robotic Process Automation comes from IT departments (ZDNet)
- Machine learning: A cheat sheet (TechRepublic)
- Artificial intelligence will be worth $1.2 trillion to the enterprise in 2018 (ZDNet)
- Fed and IBM researchers adding new intelligence to massive storage management system (TechRepublic)
Macy Bayern has nothing to disclose. She does not hold investments in the technology companies she covers.
Macy Bayern is a Multiplatform Reporter for TechRepublic. A recent graduate from the University of Texas at Austin's Liberal Arts Honors Program, Macy covers tech news and trends.