From the ancient civilization there have been user configurable automated devises that were used to entertain people. Origin of robots starts from the early 19th century. Robot is a machine which is specially programmed and controlled by a computer. They are capable of carrying complex operations automatically either with an external control or with the command embedded inside them. Robots have replaced human in conducting repetitive and dangerous activities which humans are not able to do because of certain limitations.
RPA (Robotic Process Automation) technology, sometimes called a software robot or bot, mimics a human worker.As the application of technology that allows employees to configure computer software or a robot to capture and interpret existing applications for processing a transaction, manipulating data, triggering responses and communicating with other digital systems. RPA is the automation of rules-based processes with software that requires zero (or minimum) human interaction and applies it to Enterprise Resource Planning systems (ERPs), workflows, email systems and databases. In a bank RPA has the potential to reduce the operational errors, they can work 24*7, reduce the cost of multiple people for the same task and also multitasking. This helps to increase the sustainability, increase the customer service and also improve the audits. Let me start off by saying that I am not a fan of technology for the sake of technology; I’m a seasoned transformation practitioner focused on deploying pragmatic solutions to my client’s problems. Industry study show that know only one in ten use RPA whereas by the next decade 4 out of 10 will use the same.
Scope Of Study
The main focus area of this research paper is to understand the changing financial and economic conditions with the advent of modern technology. The data collected is a form of secondary data. I focused my course of study in banking, insurance and a part of capital markets that is the Algo Trading. This study helped me to gain certain insights on the possible outcomes of the introduction of robots in the financial sector and how it will help to ease our business to increase profitability. The possible positive impact of these AI and robots in banking insurance and capital markets.
I am going to focus my study on the changes of digitalisation or automation in the financial sector. Today we stand on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another. Change is constant we cannot avoid the occurrence of the same the only thing we can do is to adjust to the changing environment and upgrade ourselves.The First Industrial Revolution used water and steam power to mechanize production. The Second used electric power to create mass production. The Third used electronics and information technology to automate production. Now a Fourth Industrial Revolution is building on the third, the connection of human mind and technology together which we call artificial intelligence. Already artificial intelligence is around us from self-driven cars to virtual assistants that guide us when and where to invest computing the risk is to returns factor. Like the previous revolutions the current revolution will also raise global incomes and improve the quality of life all over the globe. Currently ordering a cab, booking a flight, buying a product, making payment, etc can be done remotely. Transportation and communication costs will drop whereas logistics and global chain will be more effective. Economists have predicted that with the current revolution the number of job creation will come down. A time will come where the people will be rewarded for the innovative idea which they give.
So we are focusing on the impact of robots on financial sector. The Automated Teller Machines are there since 1967, but they have not yet replaced the traditional teller jobs. Since complex transactions takes place require human intervention best example is the demonetisation that took place in India. Part of these payments are replaced by various mobile E-Payment wallets. The more surprising aspect is robots actually working in a bank like the IRA a robot introduced by HDFC bank for providing basic customer service. There are many other fields like KYC, Risk, Valuations, Insurance, Limits, etc. robots have changed the face of modern day banking which in turn has helped satisfy the mellenails requirement of technology.
Robotic process automation has also dramatically streamlined a wide variety of back office processes that always used to consume time of the bank workers. By shifting these tedious, manual tasks from humans to machines which have direct impact on their performance and efficiency levels. RPA also provides full audit traits for each process that will help to achieve process compliance and reduce risk. There is a great deal of records in the life cycle of a normal banking customer right from deposits, withdrawals to loan documentaries. It was indeed very tedious job for the customer as well to maintain a record of the same. One of the greatest things that robots have done is it has introduced a solution for the banking industries through which the data management has improved and we need not be starting from the scratch. With the help of this technology the bank employees will be able to have access to information at all times at just a click away. The other part where it is usefull is the compliance and audit part instead of paying money to the consultant this can be done easily with the help of this. For example, Bank of Tokyo- Mitsubishi introduced Nao, a 58-centimetre (1ft 11)-tall, 5.4 kg robot developed by Aldebaran Robotics. It is equipped with a camera and microphone and has visual recognition and remote control capabilities. It can recognise 19 spoken languages, interact and communicate with customers in branches, and provide response to queries. They also developed a robot named Pepper which is a robot that entertains the customers with games and multimedia functions.
ANZ is using RPA in processing payroll, account payable, mortgage procession, and human resource (HR) functions. ICICI Bank, meanwhile, uses RPA to perform over one million banking transactions in backend operations per day, reducing response time by 60% and improving accuracy. These software robots are deployed in over 200 business process functions of the bank across retail banking, agri-banking, trade and forex, treasury, and HR. Likewise, Barclays Bank implements RPA across a wide range of processes such as fraud detection, risk monitoring, account receivables processing, and loan application. In India HDFC on of the largest Indian private sector bank has introduced Eva India’s first AI-based banking Chabot. They can assimilate thousands of data from different sources and provide solutions in simple language in 0.4 seconds.
EVA stands for Electronic Virtual Assistant.It is developed by Sense forth AI Research Pvt Ltd for HDFC Bank. Senseforth AI Research Private Limited was founded on 27 March 2017. It is classified as a Nongovernment Company and has been registered at the Registrar of Companies, Bangalore. Chatbot is a short form for chat robot it is a computer programme which creates human conversation or chats through artificial intelligence. Presently a chatbot conducts conversations with a real person but advanced programmes are being made where two chat bots will be able to converse with each other. They are widely used in E-Commerce websites and call centre to solve the customer grievances. The development of chatbots has opened up new arenas for customer engagement and new ways of carrying out business in the form of conversational commerce with the customers. It is now considered to be one of the most useful innovations of technologies that businesses can blindly rely on, very conveniently replacing the traditional methods of making apps and websites more efficient for business and commerce.