RPA and Blockchain: Two Approaches to Technological Disruption in the Banking Sector - Jidoka


RPA and Blockchain: Two Approaches to Technological Disruption in the Banking Sector

RPA y Blockchain: dos enfoques de disrupción tecnológica en el sector bancario
30 August, 2016

The digital banking transformation is evolving by leaps and bounds. Software Robots are already a reality and as Blockchain technology evolves it opens a wide range of new possibilities.

The banking sector is experiencing a growing process of digital transformation and fintech is taking an increasingly noticeable role in the financial world. Acquisitions of this type of company by banks and large technology companies such as Microsoft, Google or Apple are continuing. Another example is the consortium model, in which players from both sides intervene, joining forces between the largest banking corporations and the large Nasdaq corporations.

However, it is the emergence of new disruptive technologies that is truly transforming the industry, such as the RPA (Robotic Process Automation) approach or Blockchain technology. These are two very different technological approaches, both with a high impact and implication in the new market rules of the financial sector.

Our CEO, Víctor Ayllón, in his article RPA vs BPA: two approaches to… the same objective? demonstrated the qualities of RPA and why it represents real revolution in the automation of business processes and in the efficiency of back-office processes in a multitude of sectors and types of companies.

What is Blockchain technology?

This is technology that is used as a protocol for the transactions of the bitcoin virtual currency, or any other cryptocurrency.. It is a protocol of maximum security, which allows to keep the anonymity of the agents that carry out the transaction, while guaranteeing its identification if necessary, since the univocity is another of the characteristics of the record of these transactions. In addition, Blockchain allows transactions to be carried out without intermediaries; it uses a kind of distributed accounting book, also known as “accounting book 2.0”, an easily auditable mechanism that could even be consolidated as an alternative to the SWIFT system.

In order to carry out financial transactions we do not need banks or intermediary entities, does this mean the end of commercial banks? Far from it, quite the opposite, it can open a new world of possibilities.

Experts have already foreseen its potential to carry out transactions of other types of assets, such as stocks, bonds, rights and properties, etc.; and not only including bitcoins or other virtual currencies.

Blockchain’s main contribution is the possibility of connecting private and or corporate users to carry out transactions and operations without the need for intermediaries. It is also possible to maintain the registry of a database (public or private) in a secure way, remaining easily auditable through a consensus mechanism. Therefore, we see a similarity with RPA and software robots here: streamlining processes while maintaining maximum security and reducing costs, which ultimately translates into a better user experience.

RPA in the financial sector

Blockchain technology has had major impacts on the financial sector so far, but its application to other sectors is still in an experimental phase. However, the first steps indicate that it has many possibilities for application in other sectors. We can state categorically, that the application of the RPA to all types of sectors is already a reality, including the financial sector. In the article Banking Tasks that depend more on robots than people from  a BBVA Open4U we find many examples of automated tasks and processes with software robots in the banking sector: management of large volumes of data, common operations of financial products, fraud control, scalability of demand resources, and even talent retention. We also discussed this earlier in our blog in the article RPA, the key to the digital transformation of the banking sector.

The success of Jidoka’s software robots is contrasted with a multitude of success stories, in which our robots have achieved great results, operating at full capacity in many productive sectors. RPA has the capacity to build bridges between legacy systems and the new digital or multi-platform environment in which the customers of all these companies operate, in a non-intrusive way, executing and automating tasks and business processes at the user interface level.

Can Blockchain be applied to sectors other than the financial sector? It seems so. Some examples are medical records databases or copyright management, but it is still at an early stage, which has not yet been developed.

What are the implications of automating with RPA?

RPA is now an essential element for the automation of business processes, both in the banking sector and in all types of sectors. Besides, RPA allows you to keep control of the constant changes in the environment:

  • No time gap between central office and off-shore teams
  • Requires less coordination of human teams
  • Greater control over internal frameworks
  • Regulatory Compliance Solution
  • Rapid response to legislative changes

In addition, RPA and software robots bring a very high level of efficiency to companies:

  • High cost-reduction of up to 50% – 70%.
  • 24/7 and possibility to operate out of office hours
  • Time to market: implementation in weeks
  • A non-intrusive and non-invasive approach
  • Improving the quality of customer service

And finally, in the banking sector the type of processes and tasks that can be automated with software robots:

  • Daily update of CRM, new customer registrations, claims management
  • Exercise accounting: invoicing, collections, pending collection, etc.
  • General accounting: assignments and adjustments, daily entry processes, reconciliation, inter-company transactions, closing, etc.
  • Financial and external reports
  • Planning, budgets,and forecasts
  • Public Treasury Processes

RPA and Blockchain, two disruptive approaches, two very different technologies that emerge as the main players in the technological revolution and digital transformation, transformations that the financial sector is undergoing at a global level. If you still don’t know the advantages of RPA and software robots, don’t wait any longer. Shall we start?

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