Digital Banking Trends Survey Identifies Robotic Process Automation Software as a Promising New Technology
Respondents Expect 30%+ Increases in the Use of RPA Across Numerous Compliance Functions
Irvine, CA, June 6, 2018 – Kofax®, a leading supplier of software to automate and digitally transform information intensive processes, today announced the results of a global survey of 100 leading financial institutions conducted in conjunction with Digital Banking Trends, the banking industry’s innovative resource providing news, analysis and opinion on the business of digital banking, fintech and financial services.
The 2018 Financial Services Industry Survey Report confirms numerous compliance functions, from initial inquires through customer off-boarding, as key challenges for financial institutions, with 91% citing the “time/cost required from concept to reality” and 86% pointing to “budget constraints” as primary impediments. To combat these challenges, respondents expect substantial increases in the use of Robotic Process Automation (RPA) software across numerous compliance functions, from 41% in document gathering to 32% in customer off-boarding.
Today’s regulations require comprehensive Customer Due Diligence (CDD), Know Your Customer (KYC), Anti-Money Laundering (AML) and other compliance requirements from the moment a customer applies for a new account, throughout the lifetime of that account and beyond. This has led many financial institutions to experience considerable delays in bringing customers on board—in sharp contrast to consumers demanding a frictionless, anytime / anywhere experience via mobile devices and other self-service options.
Additional compliance challenges were also identified in the survey. Institutions said they were challenged by maintaining and updating their existing IT infrastructure in order to deploy and administer new compliance requirements. They also reported they had difficulty gaining access to the information required to comply with CDD, KYC and AML mandates.
Respondents identified RPA as one of the most promising new technologies for automating compliance processes, saving staff time, reducing errors and improving the customer experience. According to Jim Marous, Owner and Publisher of Digital Banking Trends, “Your onboarding process needs to be as fast, seamless and painless as possible. Customers who feel your initial onboarding and activation is too difficult or time-consuming are likely to walk away.”
Additional survey highlights include:
- 32% of respondents said they expect a 20–29% increase in AML compliance costs in 2018, while only 5% expect a decrease
- 68% obtain the information required to comply with CDD, KYC and AML mandates from up to five third party sources
- 36% anticipate up to a 10% increase in spending for CDD, KYC and AML technology over the next 12-18 months
“New and constantly changing rules and regulations in the financial services industry pose complex burdens to institutions lacking the right strategy and technology,” said Reynolds C. Bish, Chief Executive Officer of Kofax. “By offering a comprehensive digital transformation platform that includes market leading RPA capabilities, Kofax enables these organizations to quickly adapt and significantly improve the customer experience in the process. That’s why the 10 largest global banks use Kofax software and solutions.”
The 2018 Financial Services Industry Survey report, including the Top 10 Tips for Building an RPA Center of Excellence, real-world use cases and other useful resources, is now available for download on Kofax.com.
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