The increasing use automation, has helped cut costs, but it could also generate US$512 billion in added revenues for the global financial industry by 2020, suggests a new report from consulting firm Capgemini.
The right combination of robotics-process automation, artificial intelligence and business-process optimization could spark revenue growth, not just cost cuts, by enhancing cross-selling and enabling firms to bring products to market more quickly.
“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. Hundreds of billions of dollars in automation-generated revenue is up for grabs in the coming years,” says Anirban Bose, head of Capgemini’s financial services global business unit, in a statement.
The report indicates that a survey of 1,500 industry executives earlier this year found that more than a third (35%) of financial services firms say that they have seen a 2%-5% increase in topline growth due to automation. In addition, 64% reported improved customer satisfaction through intelligent automation.
Financial industry automation also represents a defensive action against big tech firms, such as Amazon and Alphabet, the report states, as 45% of financial firms expect to be competing against these tech giants in the next five years.
The adoption of intelligent automation has been relatively slow, the report states. Only 10% of companies have implemented the technology to scale, and only about 25% have the technological capability to use machine learning, computer vision, and biometrics.
Currently, 43% of firms report that they are struggling to establish a clear business case for automation, and 41% are having a hard time convincing top management to commit to a cohesive intelligent automation strategy.
“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,” said Bose.