Presentations Robotic Process Automation (RPA)

Applying Robotic Process Automation in Banking: Innovations in Finance and Risk

Description

Robotics is quickly gaining traction in banks to automate their everyday finance and risk processes. Accenture’s presentation covers the impact of Robotic Process Automation (RPA) on a bank’s finance and risk function. Read Philippe Guyonnet’s blog to learn more about RPA in banking and finance and risk innovation:http://bit.ly/2dprACR

Transcript

Innovations in Finance and
Risk – Robotic Process
Automation
April 2016
2Copyright © 2016 Accenture All rights reserved.
What is Robotic Process Automation (RPA)?
 Robotic automation lets organizations
automate current tasks as if a real person
was doing them across applications and
systems
 Interacts with individual
systems in the same way
as a human user, meaning
no complex system
integration required
 Functional trained robots
are virtual workers and
execute rule-based information
processes, improving accuracy and efficiency
 Robotic software can rapidly model and
deploy the automation
3Copyright © 2016 Accenture All rights reserved.
Robotics is the use of software to “mimic” the actions a
human user would perform on a PC at scale and ….
Automation of Business Processes
Robots can be
trained by business
users via
configuration
Sits alongside
existing infrastructure,
governed and
controlled by IT
Robots are a virtual
workforce controlled
by the business
operations teams
Emulates human
execution of
repetitive processes
with existing
applications
Robots work with
existing IT
architecture – no
complex system
integration
4Copyright © 2016 Accenture All rights reserved.
… helps generate measurable benefits
Robotics drives efficiency benefits, along with improvements in quality,
scalability and resiliency in a cost-effective way
Cost Saver
Implementation
Speed
Productivity
Boost
Higher Quality
Processing costs
Reduced by up to
Average Handling
Times reduced
Capacity increase by robotics
virtual workforce and refocus
of staff on customer service
Fast Implementation of new
processes
Payback in up to 3 months
Re-usable process elements
Human errors eliminated
Improved compliance/auditability
Higher staff satisfaction
Monitoring around the
clock
5Copyright © 2016 Accenture All rights reserved.
Transforming finance and risk operations through
automation
Key Levers Efficiency*Challenges Examples
 Create centers of excellence (CoEs)
/ centralize common processes
 Move from high-cost base to low-
cost base / labor arbitrage
 Identify global process
commonalities and promote /
embed procedures
 Define, simplify and LEAN
processes, removing wasted effort
 Deliver workflow, document
Management, self service and data
warehouse
 Implement Robotic Process
Automation and Cognitive
Computing
Centralise1
Relocate2
Standardise3
Optimise4
Digitise5
Automate6
* Indicative % benefit estimate based on total cost base
Lower
Costs
Service
Excellence
Scalable /
Flexible Ops
Enables
Growth
High
Compliance
Drives
InnovationBenefits
5 to 10%
10 to 15%
20 to 60%
 High variable costs in the
front and back office
 Poor speed of service, human
error and customer journey
 Low staff morale and poor
productivity
 Less innovation in the front
and back office
 Not flexible or scalable at
pace
 Risk of non-compliant
processes and procedures
Most organizations have focused on the “key” transformation levers. In the last few years the real power
of service automation has been unleashed and organizations are adopting this lever to help transform to
high performing back office operations.
6Copyright © 2016 Accenture All rights reserved.
Impact of Robotic Process Automation
Supplier sends invoice
via email
Email received and
printed
Work item created
Hold; Pass to exception
team
Key invoice #, date and
amount
Match PO and invoice
Match invoice Calculate tax Complete invoice
processing
Hold; Follow with vendor
Work item closed
Flag for exception
handling
Supplier name
correct?
Amount match?
No
Yes
No
Yes
Supplier accepts or
resends invoice
Barcode and
document scan
Enter PO to retrieve
invoices
Example: Invoice Processing
Outcomes
60% of full-time equivalents
(FTEs) replaced by RPA
100% accuracy on
existing process
Roughly 70% improvement
in productivity
(volume processed per day,
average handling time)
Represents replacement of manual processes with RPA
Legend
7Copyright © 2016 Accenture All rights reserved.
Accenture Finance and Risk Services –
Sample RPA use cases
Finance and
Accounting
Sourcing and
Procurement
Regulatory and
Compliance
Financial Risk
Management
Cyber Risk and
Resilience
Fixed Asset Accounting
• Calculate asset
depreciation
Procure to Pay (AP)
• Manage incoming vendor
invoices
• Process vendor payments
• Handle vendor
inquiries/disputes
Order to Cash (AR)
• Establish sales quotes.
• Validate sales orders
• Monitor customer credit
• Create and distribute
customer invoice
• Process customer
payments and apply cash
Record to Report (GL)
• Record journal entries
• GL account reconciliation
• Intercompany
transactions
• Maintain accounting
master data
Travel and Expense
• Audit expense reports
Contract Management
• Systematically vetting of
contract details and
populating appropriate
metadata is captured in
straight through processing
systems
Invoice Processing
• Scanning invoices and
automatically preparing
payment file using logic and
rules to validate invoices
and route to appropriate
teams to manage
exceptions (no middleman)
Reconciliation
• Automatic evaluation of
open orders or non-receipts
through business logic and
rules route to appropriate
team for resolution or close
item
Spend Analytics
• Robust spend analytics
tools to allow for a single
stop for supplier
management, contract
compliance and spend data
Licensing and Registrations
• Data entry and validation for
U4 Form and other
jurisdictional forms
• Transfer amendments
Personal Account Dealing
• Periodic disclosure
attestations with changes.
• Review of account openings
with paper statements.
• Paper trade entry
• Paper statement uploading to
accounts
• Transfer disclosures
Outside Affiliations and
Private Investments
• Affiliations and investment
reviewing with papers
artefacts and responses from
other functions within the
organization
• Periodic disclosure
attestations
• Transfer disclosures
Gifts and Entertainment
• Reconciliation of the gifts and
entertainment to expense
system
Risk Change Explain
• Identification and explanation
of exposure movements
• Determination of data-related
or business-related causes
for exposure movement
Limits Management
• Perform evaluation of credit
limits
• Determine causes for limit
breaches
• Recommend or perform
remediation action based on
circumstance
Risk Reporting
• Aggregate and segment
data for standard reports
(e.g., Top 50 Counterparty
Report)
Data Quality
• Execute timeliness,
accuracy, and
comprehensiveness checks,
and initiate remediation
actions where required
Data Quality Control Testing
• Ongoing evaluation of real-
time, in-line controls, or
post-process controls on
data
Control Assessment
• Analyze standardized control
evidence to substantiate
effectiveness
Activity Tracking
• Examine system logs to identify
suspicious or illegal activity
Client On boarding / Know Your
Customers
• Validate customer due
diligence info and enter into
account opening system
Reporting
• Compile information into
standard reporting formats, and
act on results
Data Reconciliation
• Reconcile processes, risks, and
controls across operational risk
management and business
process management systems.
Anti-Money Laundering (AML)
• Suspicious activity report prep
based on AML monitoring
outcomes
Comprehensive Capital
Analysis Review
• Run models, and prepare
reporting based on model
outputs
8Copyright © 2016 Accenture All rights reserved.
Process Automation – Timeframes
The average time taken for a process to be analyzed, designed,
developed and deployed to production depends on complexity
Timescale 1 month 2 months 3 months
ProcessComplexity
Low
Medium
High
Development/
testing of
solution
Process
analysis and
solution
design
Implemen-
tation into
produc-
tion
Development/ testing of solution
Process analysis and
solution design
Implementation into
production
Development/ testing of solutionProcess analysis and solution design Implementation into production
Low complexity Process
• Process automation completed in 3 weeks
• Assumption of implementation timeline to be 1 week
Medium complexity Process
• Process automation completed in 6 weeks
• Assumption of implementation timeline to be
2 weeks
High complexity Process
• Process automation completed in 8 weeks
• Assumption of implementation timeline to be 3 weeks
9Copyright © 2016 Accenture All rights reserved.
A step-by-step guide to the automation journey
Journey to automation goes from proof of concept pilot, to a center of
excellence
In weeks 1 and 2, a Discovery Workshop is held as a starting point to define
the scope of the processes and their maturity
Factory
Solution
RPA Center of
Excellence
Robotic
Process
Automation
Pilot
Discovery
Workshop
In weeks 3 to 6, a Robotic Process Automation (RPA) pilot is performed on a
few selected processes
During the next phase we build out a ‘factory’ solution, covering approximately
30 processes and using an established factory model. This model can be used
as a basis for the center of excellence in the longer term
In the long term, establish a RPA Center of Excellence to allow all areas of the
company to automate their individual processes
Innovations in Finance and Risk – Robotic Process
Automation
10Copyright © 2016 Accenture All rights reserved.
Disclaimer
This presentation is intended for general informational purposes only and does not take into account
the reader’s specific circumstances, and may not reflect the most current developments. Accenture
disclaims, to the fullest extent permitted by applicable law, any and all liability for the accuracy and
completeness of the information in this presentation and for any acts or omissions made based on
such information. Accenture does not provide legal, regulatory, audit, or tax advice. Readers are
responsible for obtaining such advice from their own legal counsel or other licensed professionals.
About Accenture
Accenture is a leading global professional services company, providing a broad range of services and
solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience
and specialized skills across more than 40 industries and all business functions — underpinned by the
world’s largest delivery network — Accenture works at the intersection of business and technology to
help clients improve their performance and create sustainable value for their stakeholders. With more
than 373,000 people serving clients in more than 120 countries, Accenture drives innovation to
improve the way the world works and lives. Visit us at www.accenture.com
Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

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