02 Feb 2020
IDC Reveals 75% of Asia/Pacific* Tier-1** Banks and Insurance Companies Will Deploy Intelligent Automation Solutions at Scale by 2022
SINGAPORE, February 04th, 2020 – IDC Financial Insights continues its series of reports on automation and artificial intelligence (AI) in financial services in IDC Perspective: Six Capabilities from Leading RPA Service Providers That Advance Financial Services Institutions Toward Intelligent Automation. The report looks at robotic process automation (RPA) and how the proposition around it has steadily moved toward intelligent automation and leveraging an intelligent digital workforce.
By 2022, IDC Financial Insights expects that 75% of Tier-1** Asia/Pacific banks and insurance companies will deploy intelligent automation solutions at scale for increased automation, intelligent decision making, and improved operational efficiencies to achieve exceptional business value and deliver a more real-time and contextual customer experience. Furthermore, IDC predicts that intelligent automation solutions will significantly accelerate how cognitive/AI technologies are consumed within financial services.
“RPA and intelligent automation will play a pivotal role in addressing business problems and goals in 2020. A new focus will be apparent among financial services institutions to derive unprecedented value for the business, customers, and employees through a combination of automation and AI, thus improving operational efficiencies, reducing costs, driving business growth, enhancing customer and employee engagement, and delivering contextual customer experience,” says Sneha Kapoor, Research Manager at IDC Financial Insights Asia/Pacific.
Important highlights from the report include:
- IDC Financial Insights indicates that institutions which choose an intelligent automation service provider based on the below-listed capabilities, typically achieve more favorable and long-term results from their automation deployments. The identified capabilities are: ability to deliver desired business outcomes; process identification and optimization; ability to deliver enterprise wide scale; security, governance, and post-deployment support as core tenets; intelligence powered by AI technologies and innovative tools; and availability of talent and strong ecosystem support.
- Ready propositions that offer intelligent automation solutions for the financial services industry in Asia/Pacific are offered by the following automation service providers: Accenture, Avanade, Capgemini, Cognizant, Mindfields, PricewaterhouseCoopers (PwC), Tata Consultancy Services (TCS), and Tech Mahindra.
- Some of the key trends and notable market developments in the Asia/Pacific financial services industry in 2020 are: rapidly growing demand for intelligent automation and AI; increasing focus on achieving scale; deployment of hybrid and flexible workforce; changing organizational structures with a demand for new roles and skills; and rising efforts in building and retaining automation talent. We also believe that attended automation will make significant inroads in 2020.
Kapoor further highlights, “Institutions must understand that having the cutting-edge technology, best solutions, and skilled talent will not suffice to seal their success. They also need to put in efforts and investments in fixing key challenges – issues related to integration, processes, security and governance, infrastructure readiness, and organizational structure and culture – to expand the automation footprint within their organizations. Moreover, we do believe that integrated intelligent automation will bring the next level of value addition, but to achieve this value, it is critical to break down the operating silos that are still quite prevalent within institutions.”
Despite the hype and curiosity that led to significant growth for many software vendors and service providers, we believe that it is important, now more than ever, to cut through the noise. Most of the automation deployments in Asia/Pacific financial services institutions currently lack scale. A siloed, piecemeal approach to automation is still more common than an enterprise wide strategy. Moreover, many early adopters that tried to instill cognitive intelligence in the automation of their business processes have not been able to deliver steady and accurate results or justify ROI from these deployments due to many challenges. This current state exemplifies a massive untapped opportunity for institutions, as well as for the software vendors and service providers.
Intelligent Automation and Artificial Intelligence will be one of the key topics to be discussed at the 2020 IDC Asian Financial Services Congress happening on 27 – 28 Feb 2020 at the Marina Bay Sands Singapore. IDC Financial Insights will unveil its latest research on financial services and insurance industry and provide engaging discussions around Robotic Process Automation, AI in Banking, Governance, Risk and Compliance; and many more. Culminating the event will be the awarding of the 20 Best Banks and 20 Challengers in Asia/Pacific. For more information on the upcoming 2020 Asian Financial Services Congress, visit http://www.idc.com/AFSC2020
About IDC Financial Insights
IDC Financial Insights assists financial service businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the banking, insurance, and securities and investments industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world's leading technology, media, research, and events company.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.
**IDC defines Tier-1 of the financial services industry as an institution with more than US$10 billion in assets size
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Capgemini Services SAS, Avanade Inc., Tata Consultancy Services Limited, Cognizant Technology Solutions Corporation, Tech Mahindra Limited, Accenture plc, PricewaterhouseCoopers LLP, Mindfields Consulting Pty Ltd.