You've heard that Robotic Process Automation is changing the world of finance, but some myths are holding your credit union back from winning with RPA. Read this article to learn all about them.
RPA (Robotic Process Automation) has become a hot topic in any credit union's annual board meeting discussion. Credit union professionals are captivated by its potential business benefits, such as saving time, money, and personnel by automating repetitive processes.
Although it has received much favorable attention, several myths have developed around it. To grasp the potential of RPA, it's necessary to dispel these myths and examine the reality at its roots.
Here we have mentioned 8 RPA myths for credit unions:
1. The ROI isn't great on RPA
The ROI is one of the most common misconceptions around RPA. We often hear that the return on investment just isn't there, or that it's too expensive to implement. But this isn't true.
The real problem is that many credit unions don't know how to calculate their ROI. They're using the wrong metrics, or they're not measuring the right things at all. The good news is that there are several ways to get an accurate picture of what your RPA project will cost and how much money it will save you in the long term.
Calculate your Credit Union’s RPA workflow ROI and get a clear picture on what works for you.
2. Error-free RPA
RPA is error-free because its underlying technology is consistent and trustworthy.
The truth is that RPA is prone to error for the reasons that several case studies have shown:
- Organization-wide problems like insufficient RPA adoption strategy and inadequate IT assistance.
- Pitfalls in the process include, but are not limited to, selecting the incorrect processes to automate.
- Potential dangers during implementation include selecting a solution that needs more proof of scalability.
- Pitfalls on the technical side include attempting to use programmed solutions when the workforce needs more expertise.
- Risks that arise after a solution has been implemented, such as forgetting to do routine maintenance or not taking privacy concerns into account.
3. RPA is solely concerned with cost reduction.
If you believe this, unfortunately, you will miss the forest for the trees. RPA is about more than just cost savings. Without a doubt, one of the primary advantages of RPA is cost reduction. A software robot can cost as little as one-third of the yearly loaded salaries of an abroad Full-Time Equivalent (FTE) to as much as one-ninth of the yearly loaded salaries of an onshore FTE.
This is the primary reason automation significantly disrupts the Business Process Outsourcing (BPO) industry's labour arbitrage model.
However, the advantages of RPA go far beyond cost savings. Other advantages include the following:
- Increases market speed because bots execute tasks instantly.
- Removes the possibility of human error.
- Increases productivity because the software "robots" works around the clock with little downtime.
- The ability to scale up and down robotic operations based on business needs.
- Increases employees by removing ordinary, menial tasks.