Robotic Process Automation

A Road Map for Wealth Management

 Robotic process automation (RPA) traces
its origins to manufacturing, textile and
other industries that have historically
relied on manual physical labor. Today’s
RPA technologies can help financial
services organizations streamline
operations, improve efficiencies and create
a competitive advantage. Companies
that hope to thrive in the future must
understand the capabilities of this
technology and its long-term potential.
Early adopters report that practical
implementation of RPA presents
several challenges which can derail the
automation initiative and result in a failed
project. Financial services firms that
have successfully implemented RPA
follow a road map to select workflows
for automation; create consensus that
transcends organizational silos; and
implement a strategic communications
plan. This white paper condenses their
experience and presents actionable
takeaways for institutions that want to
maximize their ROI on RPA.

Companies that hope to thrive in the future must

understand the capabilities of this technology and
its long-term potential.

2
A Brief Introduction
to RPA
The roots of robotic process automation (RPA)
can be found in the use of mechanical devices to
perform repetitive tasks in the beginning of the
industrial era. During the 1700s and 1800s, textile
factories installed machines to automate the once
labor-intensive tasks of spinning yarn, weaving
fabric and stitching sheets of cloth together. Henry
Ford’s famous moving automobile assembly line
started rolling in 1913 and decreased the time
required to build a Model T from 12 hours down to
just two hours and 30 minutes.
Today computers and robots have a prominent
place in virtually all manufacturing operations.
From welding to assembly to finishing, widespread
automation has increased production rates,
streamlined quality control and reduced costs.
However, these improvements did not come
without trade-offs. New technology was often met
with resistance by craftspeople whose livelihoods
were threatened. The battle cry of mobs of yarn
spinners and weavers during the anti-machine riots
of 1779 was “Men, not machines!”
Decades later, the same resistance dynamic is
playing out as artificial intelligence-based software
is sweeping through knowledge industries such
as banking, insurance and financial advising.
Companies strive for efficiency and scale, while
professionals wonder whether new technology will
displace them.
As financial advisory firms continue to explore the
potential benefits and risks associated with RPA,
they face a future where extensive automation
will become a requirement for survival. McKinsey
& Company predicts that between 110 million and
140 million full-time employees could be replaced
by automation and software tools by 2020. The
same firm argues that as many as 45 percent of
all employee activities can be automated through
technology. An automated future isn’t science
fiction – it’s inevitable.

3
 Is There a Business
Case for RPA in the What Are the Different
Wealth Management Types of Automation?
Industry?
Automation means using technology to carry out
a task that would otherwise be done by a human
RPA has demonstrated an impressive success rate
worker. Automation can be applied to a broad range
in upgrading well-developed business infrastructure
of activities, from fully mechanical to fully virtual,
because this methodology can be adopted on a
and from simple to extremely complex. Because
process-by-process basis, without the need to practical applications of automation within the
overhaul every business process simultaneously. financial services industry are so diverse, there
Many large financial services firms share common is some confusion about terminology used to
attributes that make RPA an attractive investment describe them. These definitions will help draw out
for long-term efficiency. Those attributes, similarities and key distinctions between them.
listed below, are similar to those shared by the
manufacturing plants that successfully transitioned Business Process Automation (BPA)
from manual labor to automated assembly lines
Business process automation is the automation
over a hundred years ago.
of activities that accomplish a certain business
• Multiple geographic locations, which can goal. BPA is primarily focused on transforming the
augment the benefits of automation by creating infrastructure of business processes; therefore,
greater scale and spreading the initial cost of the it often involves significant changes to a firm’s
investment over a broader organizational footprint workflows. Unlike robotic process automation that
relates to a specific program or piece of software,
• Business processes that were built based implementing BPA is a higher-level project
on limited technology capabilities, which can that’s focused on reorganizing and streamlining
create a potential for oversized improvements workflows for optimal efficiency.
within the firms that implement these solutions
Robotic Process Automation (RPA)
• An abundance of manual or partially
Robotic process automation refers to software that
automated connections to key third parties such
is coded to use computer programs in the same
as vendors, customers and regulators, which can way as a human operator would. The program’s
present an environment that’s ripe for disruption algorithm relies on certain predefined triggers or
events to start the next task or move on to the
next process without the need for a human or
RPA has demonstrated an impressive success
manual trigger. Implementing an RPA initiative
rate in upgrading well-developed business
typically doesn’t require a firm to dramatically
infrastructure because this methodology can be
reorganize its workflows because RPA can be
adopted on a process-by-process basis, without
integrated into existing business processes. Some
the need to overhaul every business process
of the examples of using RPA in the financial
simultaneously.
services industry include rebalancing, processing
onboarding forms for a new client and updating
investment information for real-time portfolio
reporting.

4
Technological proof of concept and a mature
infrastructure environment aren’t the only
characteristics that favor automation. The financial
Intelligent Process Automation (IPA)
services industry is compelled to meet rising client
expectations amid fierce competition and fee Intelligent process automation combines process
compression. Firms are racing to improve client redesign with automation and machine learning
experience, optimize their business processes and (ML). In addition to conventional rules-based
costs, and better manage business and compliance automation, IPA integrates decision-making
risks. capabilities through cognitive technologies such as
advanced analytics and natural language generation
A Cautionary Tale (NLG). IPA software can adapt to new scenarios
The advance of RPA hasn’t been painless. The and learn from past mistakes. Applications may
financial services industry must grapple with the include using a targeted email tool that learns from
challenge of having to overlay this new technology each recipient’s behavior and customizes content
on a complex web of interrelated workflows, legacy to achieve higher open rates and stronger client or
systems, human interactions and expectations. prospect engagement.
RPA might promise greater efficiency, better risk
management and quick payback, but those results Expert Systems
aren’t guaranteed.
An expert system is a form of artificial intelligence
A recent report from consulting firm that emulates the decision-making process of
PricewaterhouseCoopers (PwC) notes that a human. Unlike RPA, which is built to follow
many financial institutions are disappointed well-defined rules, an expert system is designed
with the results of their RPA implementation to solve complex problems by using bodies of
projects. Too often firms are caught between a knowledge and an inference engine. An example of
strategic mandate to quickly adopt promising an application of an expert system in the financial
new technologies and the need to build a strong services industry is mortgage loan application
business case before they make the investment. processing. In this case, the expert system does
Looking at the causes of failure in recent RPA not approve or deny loans, but checks that all
implementation projects, the PwC report identifies required conditions for the loan are satisfied,
several factors that must be addressed to ensure calculates the term of repayment, and identifies the
success. Companies must apply automation collateral that must be obtained from the borrower.
strategically, be consistent in building their vision
for technology and maintain a realistic set of
expectations.
Therefore, companies must begin their journey with
a clear understanding of which RPA competencies Companies must begin their journey with a clear
and outcomes have been proven, and which ones understanding of which RPA competencies and
are a stretch. They must make the right choices outcomes have been proven, and which ones are
about which tasks should be automated first a stretch.
for the optimal balance between ROI and risk
management. Finally, they must think about how
they speak of automation to employees and clients
to increase the likelihood of buy-in and adoption.

5
 Automating the
Right Tasks in Wealth
Management

Rebalancing

Client Onboarding

Reconciliation

Automating the Right Tasks

Today’s robotic process automation is highly capable
and reliable; however, it’s not infallible or applicable
to every business process. In order to maximize the
benefits of any RPA implementation, firms must
begin their decision process by understanding the
general characteristics of the processes that best
lend themselves to robotic automation.

RPA can improve middle- and back-office operations

quickly and cost-effectively, and firms get the most
value from choosing to automate processes that
share the following similarities:

• Low-complexity tasks that follow consistent rules

and have few exceptions

• Tasks that are intensively manual

• Tasks with standardized and well-documented

workflows

• Tasks that are otherwise prone to human error

• Tasks that utilize structured data

• Tasks that are high volume

Well over a third – and in many cases perhaps
as much as 80 percent of currently outsourced
business process work – can and will be automated
using tools such as RPA.

6
 RPA
RPA automates
processes quickly
and with minimal
Low

business impact
Business disruption

Shared Services/
Medium

Outsourcing

Business Process
Management (BPM)

Enterprise
Software
High

(ERP)

Low Medium High

Speed and predictability of execution

Source: Deloitte Analysis

It is best to choose workflows that generate the

most pain for the staff, clients and management
while also managing the potential risk exposure
due to automation.

Well over a third – and in many cases perhaps

as much as 80 percent of currently outsourced
business process work – can and will be
automated using tools such as RPA.

After the initial technology investment, firms are

likely to see decreased cycle times, improved
accuracy and greater scalability. Many also report
improved employee morale (tasks that are good
candidates for automation are often tedious and
repetitive, hence less intrinsically enjoyable) and
a smoother client service experience. Moreover,
human resources can be redeployed to higher
value-added activities.

7
 Automating the Right Tasks: Automating the Right Tasks:
Rebalancing Client Onboarding
At its core, the process of portfolio rebalancing New client onboarding is a key touchpoint that
is a perfect candidate for RPA because: shapes every client’s first experience with their
advisor. Clients and advisors both benefit when
• The rules for rebalancing are consistent and
the onboarding process runs smoothly, accurately
well-defined across multiple levels: household,
account and/or position and promptly. That result depends on seamless
completion of multiple business processes that
• The process uses structured data in the form of have traditionally been handled in the back office,
asset holdings, target allocation percentages,
from establishing agreement on legal terms to
historical and current price information, tolerance
bands and tax rates performing background checks.

• Rebalancing is a high-volume process that is Client onboarding is also a good candidate for
time-consuming and prone to human error, applying RPA because:
especially if simple tools such as Excel or home-
grown databases are used to support it • The tasks that comprise client data intake and
By using fully automated rebalancing software, an system setup are predictable, standardized and
well-defined
advisor can set tolerance bands that are appropriate
for each client’s portfolio. The software is • The data that goes into account opening forms is
programmed to continually monitor every portfolio structured
and to rebalance only those that are triggered by
• Data entry and lookup that has historically been
predefined settings, such as when the model drifts performed by an administrative associate or an
outside the preset parameters. Although most advisor is repetitive and prone to human error
rebalancing programs require a review and approval
By offering client onboarding as an automated
of recommended trades by an advisor, the entire
self-service through an advisor’s website, data
workflow leading up to the trade review is run via
gathering can be completed in the comfort of the
RPA.
client’s home or on a tablet at the advisor’s office.
Automated position monitoring and trade order Once the client completes the risk tolerance
generation have vastly improved the efficiency assessment, investment models are recommended
of the portfolio management workflow. From tax based on his or her appetite for market risk.
loss harvesting to substitute securities and client
Many automated onboarding solutions can perform
restrictions, modern rebalancing tools offer intuitive
an internal consistency review, run verification
user interfaces, configurability and efficiency. This
checks, collect required signatures and push the
effect is similar to that of an assembly line, allowing
data into other applications (from CRM to portfolio
for mass customization and effectiveness on an
design and financial planning tools) automatically,
unprecedented scale.
thereby eliminating the need for duplicate data
entry.

Post-
Business Process Top Management Staff
Clear Priorities Implementation
Analysis Buy-In Communication
Support

8
Automating the Right Tasks: Best Practices for RPA
Reconciliation Implementation
Account reconciliation is the act of comparing the Despite its widespread use and accessibility
advisor’s records with those of the custodian, in our daily lives, the acceptance of RPA in the
identifying any discrepancies and resolving them. financial services industry is far from complete.
For advisors with hundreds of accounts, manual The 2017 Financial Services RPA Survey from PwC
reconciliation can consume multiple days of full- presents only 30 percent of participants who report
time effort. A manual approach makes it impossible widespread to broad RPA adoption, with 22 percent
to perform reconciliations frequently, condenses of respondents still exploring their options.
all the work into a narrow timeframe, compounds By following in the footsteps of firms that have
stress and compromises accuracy. successfully implemented RPA, companies can
shorten their learning curve, avoid mistakes and set
Financial services firms have found that the themselves onto the path to maximum technology
process of reconciling investment accounts is a adoption and improved ROI.
good candidate for RPA because:
Business Process Analysis
• The task of comparing holdings across record-
keeping systems follows well-defined rules Companies must begin their journey toward
process automation by breaking workflows down
• The nature of exceptions can be standardized,
into concrete steps and identifying capabilities
with separate automated workflows created for
each category of exceptions required to complete each task. This step is critical
to ensure that the chosen workflow is a good
• The underlying investment data is characterized candidate for RPA.
by a high degree of structure and high volume
The challenge that many financial services firms
Without automation, trade reconciliation is a face is that their workflows blend repetitive rules-
tedious and time-consuming workflow of manually based tasks with other tasks that require the use
checking the proper settlement of each transaction. of intuition, judgment and creativity. Bifurcating
Today’s software can automatically compare trade those task categories is important if the firm is to
files against next-day records from the custodian implement RPA judiciously.
to identify missing trades, pricing discrepancies,
quantity errors and more. Some systems can also
resolve a large percentage of the errors, so human
involvement is limited to resolving the exceptions
that cannot be handled by the software.

Be Prepared to Answer These Common Stakeholder Questions

• What exactly is robotic process automation?

• Why are we implementing RPA now? Why this process?

• What will happen to my job? Will I lose my job?

• What will happen if something goes wrong during the deployment?

• What does this mean for the company in the long run?

9
Building Consensus Managing human issues is at the heart of a
and a Communications Plan successful RPA implementation. In order to
avoid the perception that the goal of an RPA
Since RPA is still new and has the potential to
deployment is to eliminate employees, leadership
eliminate jobs, it is important to meet with all of
must communicate the benefits of the initiative
departments that will be impacted by the RPA
throughout the firm. Providing a list of the
project and obtain their buy-in.
processes RPA will and will not be affecting, as
Large financial institutions that have successfully well as a detailed explanation of how any workers
deployed RPA have reported that arriving at who see their roles diminished will be handled,
consensus about RPA priorities can be difficult, goes a long way toward laying the groundwork for
especially if multiple organizational silos are a successful implementation. Human resource
involved. According to the 2017 Financial Services managers should also redefine hiring, training and
RPA Survey from PwC, gaining agreement on the human resources procedures.
right approach to RPA implementation is ranked as
the most common challenge (shared with finding
subject matter expertise). Firms that attempt to Managing human issues is at the heart of a
skip or skimp on the consensus-building process successful RPA implementation. In order to
risk having their RPA project fail. “Several robotics avoid the perception that the goal of an RPA
programs have been put on hold, or CIOs have deployment is to eliminate employees, leadership
flatly refused to install new bots,” according to a must communicate the benefits of the initiative
2017 report by McKinsey & Company, “till solutions throughout the firm.
have been defined to scale the program effectively.”
In order to build consensus, begin by making the
selection process as objective as possible through Strategic messaging and staff engagement
gathering and analyzing measurable data. An throughout the process can alleviate much of
enterprisewide RPA strategy has unquestionable the angst and anxiety, especially in valuable
efficiencies; however, some financial services employees who have the longest institutional
firms have demonstrated success using a hybrid memory. Despite best efforts, companies should
model where some department-level autonomy be prepared to see a broad spectrum of employee
is permitted for certain RPA components. Pilot attitudes ranging from eager acceptance to active
projects can also demonstrate proof of concept for or passive resistance, and even sabotage. It’s
workflow automation in smaller, less expensive and wise to continually assess the temperature of the
more risk-controlled environments. organization during the implementation of new job
responsibilities, reporting overlays, pay structure
and supervision.

10
Post-Implementation Support
Change is never easy. Shepherding a company
toward a go-live date for new technology is a big
challenge that doesn’t end after deployment. In
What RPA Means
fact, continued monitoring and post-implementation
support is crucial for companies to protect their
for Your Business
corporate brands, ensure excellent client service
and minimize risk exposure. Just as automation has forever changed the face
of manufacturing, it’s now disrupting the financial
Some of the best practices for post-RPA services industry. RPA presents a compelling
implementation support include: model for boosting efficiency and enhancing
collaboration between humans and technology.
• Monitor ROI on automation, but keep in mind
that the range of time to achieving a positive However, it also creates tough challenges for
ROI can be long (six months to two years, with leaders who must decide when and how these
the average of 14 months, according to research technologies will be implemented.
from PwC)
Some common issues include building consensus
• Continue to invest in training, program and buy-in, securing resources to fund and
management and technology integration
champion the new technology, and managing
opportunities
employee morale. These challenges can be
• Test and refine internal controls that ensure overcome, but only if the organization invests the
the integrity of newly automated processes. time to define its strategic priorities, clarify its
Business continuity and disaster recovery plans
purpose in implementing RPA, and re-affirm its
must be updated to cover an RPA failure event
commitment to staff and clients.
• Convey the company’s commitment to
technology as a means of creating excellent Firms that build RPA capabilities receive tangible
client service and exceptional stakeholder value. competitive advantages through improved scale,
RPA should be presented as a natural part of the efficiency and client experiences. They also
company’s evolution, not an opportunity to reap position themselves to take advantage of future
quick cost savings
developments in this area.
• Re-evaluate human resource procedures and
mandates as they relate to hiring, training, As RPA technology moves from proof of concept
employee mobility, compensation, succession into full-scale adoption, its capabilities will expand.
and support for exiting employees Today’s RPA software relies on humans to write
code and train bots, but in the future, intelligent
process automation (IPA) will enable those bots
to gain knowledge through machine learning and
natural language processing.

RPA has proven its usefulness and tremendous

potential. As advances continue, companies that
Connect With Us
hope to reap the benefits of scale and efficiency
For more information about must begin by adopting RPA today.
wealth management solutions
from Fiserv, call 800-872-7882,
email getsolutions@[Link] or
visit [Link].

11
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