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8 Common RPA Myths Every Credit Union Should Know
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.
4. RPA is Industry-Tailored
Many people mistakenly believe that RPA only applies to specialized fields like banking and manufacturing. Contrary to popular belief, it is simple to implement and use in virtually any field where routine, rule-based operations are carried out. Robotic process automation (RPA) has many potential applications across many industries. All sectors can reap the rewards of its use.
5. Robots can do everything
There are clear guidelines on the types of processes appropriate for RPA automation. Among these criteria are the following:
- Rule-based
- High transaction volumes
- Few exceptions
- Stable and well-defined procedures
- Minimal system change
- Structured data and electronic inputs that are readable
However, just because a process checks all the above boxes does not mean automating it with RPA will result in tangible benefits. This is because the process may be ineffective and must first be re-engineered.
6. Robots can be left unattended 24 hours a day, seven days a week
This is the ideal outcome, but it can take time to achieve. A robot or process control system (a human) is typically required to run, schedule, supervise, handle exceptions, track robot performance, and perform all the other production support functions.
It is also critical to develop a business continuity strategy. Because robots will and do fail, you must have a backup plan in place. This brings us back to our earlier point: robots will never replace humans.
7. RPA is (just) a fancy macro/scripting language
Although they share some similarities, RPA software is intrinsically superior to a macro script in terms of functionality. RPA, for instance, offers the rare opportunity to integrate multiple unrelated IT systems at the UI level. In addition, most enterprise RPA tools prioritize governance, which is absent from using macros and scripts.
8. RPA will substitute human jobs
According to surveys, companies report experiencing stiff opposition during the RPA pilot phase. This is because many workers worry that they will be replaced by RPA robots and become unemployed.
RPA bots still need human interaction when it comes to:
- Make a bot by using some code.
- Keep an eye on the bot to ensure it behaves according to company rules.
- Also, a software bot lacks the cognitive powers, human emotions and judgment, and social interaction skills necessary for value-adding tasks like acquiring customers or making commercial decisions.
Conclusion
Some of the most common misconceptions are addressed above. Unsurprisingly, there are more of them. There will always be critics, those resistant to change, and those with the wrong priorities. This results in erroneous beliefs, which, if not addressed, can prevent progress. By clarifying a few popular misconceptions about RPA, we can help you better understand what it is.
Zuci Systems is an IT services company with solid expertise in providing tech services for banking and credit union industries. The large bulk of credit unions hasn’t yet given any thought to the many use cases that could be an excellent match for robotic process automation (RPA) but are accessible.
I write about fintech, data, and everything around it | Assistant Marketing Manager @ Zuci Systems.
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