Can RPA Modernize Capital Market Landscape?

Can RPA Modernize Capital Market Landscape?

Capital Markets CIO Outlook | Tuesday, January 05, 2021

RPA capability gives financial institutions an opportunity to eliminate redundancy and streamline processes to move towards fruition.

FREMONT, CA: Capital markets include various complex verticals that had conventionally been dependent on manual operations. However, the advancements in various technologies are encouraging the leaders of the financial institutions to incorporate technology-driven solutions. For instance, in operational ecosystem, financial institutions need to perform several repetitive tasks. Such tasks are increasingly getting automated with advancements, such as robotic process automation (RPA)

RPA can offer an amazing level of business scalability, management, and control reporting. The firms need to set up software systems on a centralized server instead of user desktops to maximize the potential of RPA. Centralization of the operations encourages the standardization of processes, thereby enabling the firms to meet their RPA goals. Setting up such a system would require investments as well as a long-term strategic plan. 

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A wide array of software programs involved in the capital firms can be automated via RPA without the need for complex programming. The primary advantage of incorporating RPA is that it reduces human efforts. RPA is becoming an instrumental tool to resolve trades in financial institutions that were previously impacted by system processing issues. In the case of financial risk management, RPA can identify and describe changes in risk exposure. Moreover, robotics solutions can also determine the factors influencing such changes. 

RPA allows the estimation of credit limits. It also offers recommendations for remedial measures. Time-consuming risk reports can also benefit from automation. Robotic solutions allow regular, precise, and comprehensive checks on data quality and initiate remedial measures as required. 

Financial risk management and compliance is another aspect that can benefit from robotic automation. For instance, Robotics enables the firms to inspect paper statements and account openings. Such a proposition makes transfer disclosures and employee trades subject to appropriate levels of review. Apart from the above, transfer disclosures and disclosure attestations can also be monitored automatically.

Robotics is increasingly gaining grounds in the capital markets sector due to its ability to automate looped tasks and enable cost efficiencies. Further, the automation of complex tasks also allows firms to utilize their human resources for other productive purposes.

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