By FINTECH Books Contributor, Vladimir Dimitroff
Robo advisory solutions are enjoying the spotlight of all media (and investor) interest, but there is a quiet revolution happening at the back office, one of no lesser significance and financial impact.
RPA (robotic process automation) is already putting a virtual workforce in charge of currently manual repetitive tasks, bringing shorter cycle times, improved quality and reliability, and significant cost savings and an on-going shift to a new generation of TOM-s (target operating models) in Wealth Management (WM), where a primary efficiency driver is comprehensive outsourcing of both business processes and technology platforms.
While earlier forms of BPO sought (and delivered) cost savings mainly through labour arbitration, now even lower cost labour is questioned in terms of added value, consistency in performance and mitigation of errors.
Examples of typical processes in WM operations that are more likely to benefit from robotic automation, some best-practice solutions already in the market, rapidly moving form experimental pilots into business-as-usual production and proving the benefits of the approach.
While less spectacular and publicly admired than the front-end robots dispensing intelligent investment advice (or talking with the friendly voices of Siri and Cortana), those hard-working back office robots deserve equal attention from the industry and present a great opportunity for WealthTECH innovation.