Robotic Process Automation in BFSI Market to Grow with a CAGR of 38% Globally through to 2028
Global Robotic Process Automation (RPA) in BFSI Market
is rising due to the industry's need for enhanced operational efficiency, cost
reduction, and compliance with regulatory requirements through automation of
routine tasks in the forecast period 2024-2028.
According to TechSci Research report, “Global Robotic
Process Automation in BFSI Market - Industry Size, Share,
Trends, Competition Forecast & Opportunities, 2028”, Global
Robotic Process Automation in BFSI Market has valued at USD 872 Million in 2022
and is anticipated to project robust growth in the forecast period with a CAGR
of 38% through 2028. The Global Robotic Process Automation (RPA) market within
the Banking, Financial Services, and Insurance (BFSI) sector is undergoing a
profound transformation. RPA technology is revolutionizing how financial
institutions operate by automating repetitive, rule-based tasks, enabling
efficiency gains, cost reduction, and enhanced accuracy. In an industry where
data accuracy and compliance are paramount, RPA plays a pivotal role in
streamlining back-office operations, customer service, and regulatory
reporting. By automating processes such as data entry, account reconciliation,
and fraud detection, BFSI organizations can redirect human resources towards
more strategic, value-added activities.
Moreover, RPA fosters operational agility, a critical factor
in the rapidly evolving financial landscape. It empowers institutions to adapt
swiftly to market changes, customer demands, and regulatory updates, thereby
gaining a competitive edge. Additionally, RPA's ability to work around the
clock ensures uninterrupted service, facilitating real-time transaction
processing and customer support.
Furthermore, the BFSI sector is increasingly embracing
RPA for compliance and risk management. RPA bots can meticulously follow
regulatory protocols, reducing the risk of non-compliance and associated
penalties. Overall, the Global RPA in BFSI market is witnessing robust growth
as financial institutions recognize the transformative potential of automation
to streamline operations, enhance customer experiences, and ensure regulatory
adherence in an increasingly dynamic and data-driven industry.
Browse over 26 market data Figures spread
through 91 Pages and an in-depth TOC on "Global Robotic
Process Automation in BFSI Market”.
The global Robotic Process Automation (RPA) market in
the Banking, Financial Services, and Insurance (BFSI) sector has witnessed
significant growth in recent years. RPA refers to the use of software robots or
artificial intelligence (AI) to automate repetitive and rule-based tasks,
thereby improving operational efficiency and reducing costs. The BFSI industry,
being highly regulated and data-intensive, has embraced RPA as a means to
streamline processes, enhance customer experience, and achieve digital
transformation. One of the key drivers of RPA adoption in the BFSI sector is
the need for operational efficiency. Banks, financial institutions, and
insurance companies deal with a vast amount of data and perform numerous
repetitive tasks on a daily basis. These tasks, such as data entry,
reconciliation, and report generation, are time-consuming and prone to human
errors. By implementing RPA solutions, organizations can automate these tasks,
freeing up human resources to focus on more strategic and value-added
activities. This not only improves productivity but also reduces operational
costs.
Moreover, RPA enables organizations in the BFSI sector
to enhance customer experience. With the increasing demand for personalized and
seamless services, RPA can play a crucial role in delivering exceptional
customer service. For instance, software robots can be deployed to automate
customer onboarding processes, loan application processing, and claims
management. This not only speeds up the process but also ensures accuracy and
consistency, leading to higher customer satisfaction. Furthermore, RPA offers
the BFSI industry the opportunity to achieve digital transformation. In today's
digital age, organizations need to adapt to changing customer expectations and
market dynamics. RPA provides the agility and scalability required to meet
these challenges. By automating manual and repetitive tasks, organizations can
accelerate their digital initiatives, improve process efficiency, and gain a
competitive edge. RPA can also integrate with existing legacy systems, enabling
organizations to leverage their previous investments while modernizing their
operations. The global RPA market in the BFSI sector is witnessing significant
growth due to these factors. According to market research reports, the market
is expected to expand at a compound annual growth rate (CAGR) of XX% during the
forecast period. North America and Europe are the leading regions in terms of
RPA adoption, driven by the presence of large financial institutions and a
favorable regulatory environment. However, emerging economies in Asia-Pacific,
such as India and China, are also witnessing rapid RPA adoption, fueled by the
increasing digitalization of financial services and the need for cost
optimization.
In conclusion, the global RPA market in the BFSI
sector is experiencing robust growth as organizations recognize the benefits of
automation in improving operational efficiency, enhancing customer experience,
and achieving digital transformation. As the industry continues to evolve, RPA
is expected to play a pivotal role in reshaping the way banking, financial
services, and insurance processes are carried out. With advancements in AI and
machine learning, RPA is likely to become even more sophisticated, enabling
organizations to automate complex tasks and drive innovation in the BFSI sector.
The Global Robotic Process Automation in BFSI Market
is segmented into Type, Deployment, Organization, Application, regional
distribution, and company.
Based on its Application, the banking segment holds
the largest market share of more than 59.6% in 2022. Lack of skilled resources,
high personnel costs, and the need to increase productivity are the key factors
driving the adoption of RPA in the banking sector. Furthermore, the rising
market pressure is impelling banks to seek different opportunities to reduce
operational costs, maximize efficiency, and accelerate their productivity
gains. In addition to enabling easy review of documents, owing to its
accessibility, robotic process automation in banks has helped create
transparency in an organization where every transaction can be recorded,
categorized, and stored.
The financial services and insurance segment is
expected to witness the fastest growth at a CAGR of 41.1%. Identifying and
automating various processes in the financial services sector is becoming a key
priority of robotic process automation vendors. RPA solutions have helped
financial services providers to assign employees to value-added tasks to
enhance organizational value. The structured legacy systems in BFSI
organizations are hard to integrate with the advanced RPA solutions, and
modernizing legacy systems becomes a challenge in terms of data accessibility
and data migration. In such cases, RPA services, which enable seamless
transition, are used. robotic process automation helps organizations automate a
time-consuming task so that an employee can focus on customer services by
realigning organizational resources.
Based on region, the North American regional market
dominated the robotic process automation in BFSI market in 2022 and accounted
for 37.2% market share and is anticipated to retain its position over the
forecast period. It is estimated that a U.S. bank with USD 10+ billion assets
spends an average of USD 50 million per year on KYC compliance, CDD, and
onboarding. The increasing cost of KYC and AML compliance, steep fines, and
regulatory scrutiny for non-compliance are necessitating banks and financial
institutions to consider new technologies such as automation to identify &
prevent theft, financial fraud, money laundering, and terrorist financing, as
well as eliminate manual tasks, improve compliance with government regulations,
and reduce costs of compliance. Moreover, the growing need for process
management and automation solutions in the BFSI sector is anticipated to boost
regional market growth.
Asia Pacific is anticipated to rise as the
fastest-developing regional market at a CAGR of 42.0% over the forecast period.
An increasing number of financial institutions in the Asia Pacific have identified
processes suitable for RPA. Furthermore, BFSI organizations are using RPA and
AI in areas such as back-office operations for compliance automation &
process streamlining and front-end operations for customer service enhancement.
Moreover, an increasing number of businesses in the Asia Pacific region are
adopting robotic process automation solutions to increase production through
faster execution of business processes, bolster overall financial performance,
and maintain a competitive edge.
Major companies operating in Global Robotic
Process Automation in BFSI Market are:
- Antworks
- Atos SE
- Automation Anywhere, Inc.
- Blue Prism Limited
- EdgeVerve Systems Ltd.
- FPT Software
- IBM
- Kofax Inc.
- Microsoft (Softomotive)
- NICE
- Nintex UK Ltd. (Kryon Systems)
- Pegasystems Inc.
- Protiviti Inc.
- UiPath
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“The global Robotic Process Automation (RPA) market in
the Banking, Financial Services, and Insurance (BFSI) sector has witnessed
significant growth due to the need for operational efficiency, enhanced
customer experience, and digital transformation. RPA automates repetitive and
rule-based tasks, improving operational efficiency and reducing costs. In the
BFSI industry, which deals with vast amounts of data and performs numerous
repetitive tasks, RPA solutions automate tasks like data entry, reconciliation,
and report generation, freeing up human resources for more strategic
activities. This improves productivity and reduces operational costs. RPA also
enhances customer experience by automating processes like customer onboarding,
loan application processing, and claims management, leading to higher customer
satisfaction. Additionally, RPA enables digital transformation by providing
agility and scalability, accelerating digital initiatives, improving process
efficiency, and integrating with existing legacy systems. The global RPA market
in the BFSI sector is expected to grow at a compound annual growth rate (CAGR) of
XX%, with North America, Europe, and emerging economies in Asia-Pacific leading
the adoption. RPA is reshaping the industry and driving innovation by
automating complex tasks and leveraging advancements in AI and machine learning.,”
said Mr. Karan Chechi, Research Director with TechSci Research, a
research-based management consulting firm.
“Robotic
Process Automation in BFSI Market – Global Industry Size, Share, Trends,
Opportunity, and Forecast, Segmented By Type (Software, Services), By
Deployment (Cloud, On-Premise), By Organization (SMEs, Large Enterprises), By
Application (Banking, Financial Services & Insurance), By Region, By
Competition”, has evaluated the future growth potential of Global Robotic
Process Automation in BFSI Market and provides statistics & information on
market size, structure and future market growth. The report intends to provide
cutting-edge market intelligence and help decision makers take sound investment
decisions. Besides, the report also identifies and analyzes the emerging trends
along with essential drivers, challenges, and opportunities in Global Robotic
Process Automation in BFSI Market.
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