How Is RPA Crucial For Transforming The BFSI Sector?


By Shaifali Sharma

How Is RPA Crucial For Transforming The BFSI Sector?

The COVID-19 pandemic was the biggest reason behind the sudden acceleration of automation across different industries. Especially, the introduction of RPA gained all the vision and applications across different operational environments. As per the recent research, “The global RPA market size is already valued at $1.40 billion in 2019 and is expected to reach $11 billion by 2027, expanding at a CAGR of 34% from 2020 to 2027.” The numbers thus signify hyper-active adoption and scaling of RPA or Robotic Process Automation. 

Nevertheless, one of the most unique and effective spots for RPA deployment comes from the Banking and Financial Services Industry (BFSI). Since the banking industry is the house of legacy applications and processes that involve a lot of manual efforts, the giants from BFSI have invested a lot in technology to transform and simplify all the internal operations. However, the use of disparate solutions demanded extensive human efforts, time, and most importantly they involved even inefficiencies.  

Therefore, Robotic Process Automation intervened in the picture making way for straight-through processing and showcasing the potential to iron out all the flaws in straight-through operations. Besides, RPA turned out to be an effective tool to reduce the expenses to a minimum while integrating maximum security.  

In this blog, we will aim at discussing the role of RPA in the BFSI sector with all our experience serving the banking and finance industry with Quality Assurance services. We will aim at highlighting the current position of RPA in the BFSI industry while discussing the scope and benefits of the technology in the BFSI trade in the upcoming times.  

Let’s begin! 

What Is RPA And How It Has Changed The BFSI Sector? 

When it comes to the definition of RPA, Robotic Process Automation has all the potential to automate the workflows for all the mundane and rule-based jobs, cutting the time consumed and adding to the overall efficiency of the specific process. When working through advanced data manipulation, the technology can be trained to perform the given task or process without human involvement. 

As long as it is concerned with the application of RPA in the BFSI industry, the standard approach puts programmed robotic applications augmenting or replicating human tasks. It, therefore, helps banks, finance departments, and insurance agencies to automate manual and repetitive tasks. The ultimate objective is to generate high value allowing the organization to have a competitive business advantage.  

The purpose behind rule-driven automation is to ensure the dedicated RPA can automate things without any variation in process or outcome. And therefore, to enhance the potential of RPA, the BFSI organizations took advantage of AI, Machine Learning, and Natural Language Processing. The process helped drive intelligence to the RPA systems while giving them the ability to analyze real-time data, identify emotions, and process human language in most complex processes. 

Considering and evaluating the potential of RPA in the BFSI sector, McKinsey, a global consulting firm, reported the process to be most suitable for certain specific applications, namely: 

  1. Policy Administration & Servicing 
  2. Underwriting & Policy Pricing 
  3. Policy Claims & Fraud Detection 

RPA, BFSI, & The Digital Transformation 

The entire agenda behind digital transformation of BFSI sector is to automate the processed services for all the basic tasks like document scanning, collecting checks to meet the process scalability goals and overcome system scalability errors.  

Though mobile technology has come a long way in simplifying all the banking operations for the customers. It includes all the finance and insurance-related services that were managed earlier through branch-based services. But the banking facilities like internet banking, mobile applications, and online handling of service requests have simplified the whole task of customer service. On the other hand, there are so many internal operations that are worked in the middle or the backend of the BFSI organizations. Since these processes involve several supporting players who function as a chain between banks and consumers, the BFSI industry needs solutions that can help reduce manual handling.  

Here RPA technology comes into the picture. Robotic process automation cuts off all the non-productive tasks by streamlining them through automation. Though the organizations were successful up to here on automating most consuming tasks, the next big thing that they need to take down was to overcome the extensive number of false positives coming from the system. And therefore, to add more validation to the process, AI, ML, and NLP technologies were all embedded into the RPA environment to ensure productive automation. 

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Especially, the AI and ML technologies helped Financial Institutions to process all the exceptions and rules in order to overcome constantly growing false positives. Fortunately, a dedicated approach to implementation and Quality Assurance Services helped FIs to reduce false positives by 90 percent in most cases. A significant example of the same could be followed from the fraud management activities happening in the cards and online payment industry.  

The pioneers of AI-enabled fraud management like Actimize and Clari5 made the FIs continuously feed on data and understand the exceptions to the rules to reduce false positives. The same was then also replicated in the area of financial reconciliation and insurance policy frauds. 

All in all, the next level of accommodating RPA into the BFSI industry is embedded intelligence into the automation process. Besides, it is also a significant part of the digital transformation initiatives pursued by the Banking and Finance industry using automation for business advantage.  

The Advantages Of RPA In BFSI Industry 

When it comes to Robotic Process Automation, there are so many significant advantages that RPA has to offer to the BFSI industry. Some of these can be listed as: 

  1. RPA could provide massive saving on time (even up to 90 percent in specific cases). 
  2. The deployment of RPA technology could help an organization to reduce unwanted expenses on manual tasks.  
  3. Another significant advantage of RPA technology is added job satisfaction in employees since it overcomes all the stress associated with basic operation and adds to overall efficiency.  
  4. RPA helps to overcome any financial burden related to infrastructure while allowing easy to create, easy to use, and easy to scale solutions.  
  5. Robotic Process Automation gives you enough bandwidth to scale all the operations in routine. 
  6. RPA allows business teams to be more self-sufficient when it comes to managing the RPA software with easy training.  
  7. Last but not least, RPA creates a positive environment to improve and meet regulatory compliance benchmarks through effective Quality Assurance and Testing.  

The Crux 

With years of expertise and a mature approach, BugRaptors have all the experience required to work on solid RPA implementation. From the selection of frameworks to the selection of methodologies, we help BFSI brands establish a dedicated RPA function. Besides, our team of highly qualified testers brings you all the assistance you need to define the strategy, understand the process, and foster your automation goals.  

Above all, it is extremely necessary for organizations to aim for optimizing productivity and FTE plan for rolling out the perfect solution. This is why we aid our clients with thorough support on Bot Development with effective exposure to AI, ML, and NLP technology to ensure all the goals related to governance and validation are achieved.  

And if you need all the expert assistance to empower your existing or upcoming RPA project with effective monitoring and maintenance of the bots, we can lend you a helping hand.  

For more information, reach us through  


Shaifali Sharma

Shaifali is an ISTQB certified QA engineer, working at BugRaptors. She is a testing professional having diverse exposure in various projects and application testing with comprehensive understanding of all aspects of SDLC. She is well versed with Manual testing, Mobile application testing, performance testing, load testing, Web applications testing and able to create effective documentation related to testing like test case, test report etc.

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