RPA and Hyperautomation in Banking Market Expected to Reach $7.1 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “RPA and Hyperautomation in Banking Market By Component (Solution, Services), By Deployment Mode (On-Premise, Cloud), By Organization Size (Large Enterprises, Small And Medium-Sized Enterprises), By Application (Customer Account Management, Fraud Prevention, Report And Invoice Automation, Account Opening And KYC, Auditing And Compliance, Chatbots, Others): Global Opportunity Analysis And Industry Forecast, 2022-2031". The RPA and hyperautomation in banking market was valued at $745.44 million in 2021, and is estimated to reach $7.1 billion by 2031, growing at a CAGR of 25.7% from 2022 to 2031.

Implementing RPA and hyperautomation in the banking industry gives an excellent opportunity to automate some of the critical banking tasks. One of the time-consuming processes at banks is credit card applications, which typically take several days for validating the customer information before approving the credit card. RPA, on the other hand, can help make quick decisions to approve/disapprove the application with a rule-based approach. Moreover, adopting RPA and hyperautomation brings valuable benefits and competitive advantages for the banks operating in the digital economy. Therefore, these are some of the major RPA and hyperautomation in banking market trends.

The banking industry is facing a number of challenges, including increased competition, regulatory pressure, and the need to improve efficiency and reduce costs. To address these challenges, many banks are turning to Robotic Process Automation (RPA) and hyper automation technologies. RPA is a type of software that allows organizations to automate repetitive, rule-based tasks. This can include tasks such as data entry, account reconciliation, and compliance checks. RPA can be used to automate tasks across a wide range of functions, including finance, accounting, human resources, and customer service. The use of RPA in the banking industry can help banks to improve efficiency, reduce costs, and increase their ability to comply with regulatory requirements. Hyper automation is the next step beyond RPA, it refers to the combination of multiple automation tools and technologies to automate end-to-end business processes. This can include RPA, Artificial Intelligence, Machine Learning, Natural Language Processing, and others. Hyper automation can help banks to improve their decision-making capabilities, enhance customer service, and increase their ability to adapt to changing market conditions. 

One of the major trends in the banking industry is the increasing adoption of cognitive automation, which is the use of AI-based solutions to automate tasks that involve decision making. This can include tasks such as fraud detection, credit risk analysis, and customer service. Cognitive automation can help banks to improve the accuracy of their decision making, reduce the number of false positives, and increase the speed of decision making. Another trend is the use of natural language processing (NLP) in banking, which enables banks to understand and respond to customer queries in a more natural and efficient way. NLP can also be used to automate tasks such as document processing, which can help banks to reduce the time and costs associated with manual data entry. In conclusion, RPA and Hyper Automation are becoming increasingly popular in the banking industry as they can help banks to improve efficiency, reduce costs, and increase their ability to comply with regulatory requirements, and also with the use of AI and NLP, it can enhance decision-making capabilities and improve customer service. The market trends indicate that the adoption of RPA and hyper automation in banking will continue to grow in the coming years.

Furthermore, major market players are undertaking various strategies to increase the competition and offer enhanced services to their customers. For instance, In August 2021, Infostretch has collaborated with Automation Anywhere, a global leader in cloud robotic process automation (RPA), to enable customers to achieve higher levels of automation. The alliance brings together Infostretch’s proven expertise in implementing automation for enterprises with Automation Anywhere’s powerful end-to-end intelligent automation platform, Automation 360, helping customers reduce costs and improve efficiency across their organizations. Which provided a strategic advantage to the company and RPA and hyperautomation in banking market size.

On the basis of deployment mode, the on-premise segment attained the highest growth in 2021. This is attributed to the fact that the on-premise deployment mode is considered widely useful in large banks and institutions, as it involves a significant investment to implement, and organizations need to purchase interconnected servers as well as software to manage the system.

On the basis of region, North America attained the highest growth in 2021. This is attributed to the RPA and hyperautomation banking has been adopted by the majority of banks and financial institutions in the U.S. as a result of increased financial services efficacy, decreased costs & complexity, and consumer acceptance.  

COVID-19 had a positive impact on the RPA and hyperautomation in banking market. Rapid adoption of digitalization in the banking sector during the pandemic helped to grow the RPA and hyperautomation in banking industry. Moreover, to improve the security features in the banking platform, many banks adopted machine learning to predict fraud even before it happens. In addition, AI in banking solutions possesses extreme capabilities to reduce account opening time and operational costs. Furthermore, in the approaching years, it is anticipated that this aspect will present the RPA and hyperautomation in banking growth with numerous, very lucrative prospects.

Key Findings of the Study

• By component, the solution segment accounted for the highest RPA and hyperautomation in banking market growth in 2021
• By organization size, the large enterprises segment led the RPA and hyperautomation in banking market analysis in terms of revenue in 2021.
• By application, the customer account management segment accounted for the highest RPA and hyperautomation in banking market share in 2021.
• By region, North America segment accounted for the highest RPA and hyperautomation in banking market share in 2021.

The report analyzes the profiles of key players operating in the RPA and hyperautomation in banking market such as AntWorks, Aspire Systems, Atos SE, Automation Anywhere, Inc., Blue Prism Limited, eccenca GmbH, IBM, Itrex Group, Protiviti Inc. and UiPath. These players have adopted various strategies to increase their market penetration and strengthen their position in the RPA and hyperautomation in banking market.