How the Age of Automation Affects the World of Finance
Recent research suggests that up to 40 percent of finance activities are able to be fully automated. Functions such as cash disbursement, revenue management, and general accounting and operations are tasks under such review. These abilities would help simplify core internal transactions, standardize reporting structures, and help the hierarchy in terms of efficiency.
In more specifics, groups are already exploring a process called RPA, or robotic process automation, which falls under the category of automation software that performs redundant tasks on a timed basis and ensures. A tool such as RPA has advanced to the point they are no longer utilized in only a specific business activity but throughout multiple areas of the business. Unfortunately, the process of implementing such tools is not always as easy. Companies have to work on successfully implementing RPA at scale, and the ones that have done so had to redesign their operating models and their processes. Finance departments have to receive training on RPA technology to avoid overflow to IT departments.
In the corporate world, insiders estimate the overall utility of tools such as RPA to increase overall productivity within the finance function in group by about 20 percent, given time- and cost-savings associated with the deployment of RPA in this pilot area as well as several others.
Keith Knutsson of Integrale Advisors commented, “it remains important to specialize new technological abilities we develop into specific departments and functions. In the world of finance, this, in my opinion, is very much needed.”