RPA’s Impact on Mexico’s Financial MarketsBy Cesar Cotait | Tue, 08/30/2022 - 13:00
Mexico is a crucial player in the global economy and its financial markets are of vital importance. Robotic process automation (RPA) has the potential to impact Mexico's financial sector. Experts are optimistic about how this will play out in the future.
Whatever happens, RPA is dramatically changing the landscape of Mexican finance. Let's take a closer look.
What is RPA?
Robotic process automation is the use of software robots to automate human tasks. These tasks are often repetitive and rules-based, making them well suited to automation. RPA is already being used in a variety of industries around the world, from manufacturing to healthcare. Now, it is beginning to make a strong impact in the financial sector.
Mexican fintech companies continue to gain prominence in the country's financial markets. This is thanks in part to the increasing demand for innovative technologies and solutions. As a Gartner report shows, RPA is gaining ground as an efficient way to automate business processes.
Why RPA Is Ripe for Mexico's Financial Sector
RPA can help banks and other financial institutions in Mexico streamline their operations. Ultimately, that should improve their bottom line. The country's banking sector is facing several challenges. For many of these issues, digital transformation is the solution.
1. Outdated Systems and Processes
Many of Mexico's private financial institutions are using what we call legacy systems. These are outdated systems that are a challenge to maintain. They might also lack the features and functionality that modern businesses need.
Robotic process automation can help by automating many of the tasks that are currently being done manually. This will free up employees to focus on more value-added activities and help the business run more efficiently.
For example, RPA can extract data from old systems, populate it into a new system, and then trigger a workflow. This is a huge time-saver for businesses relying on manual processes to move data between their old and new systems.
2. Lack of Standardization
Next is the lack of standardization across different institutions. Lack of standardization leads to inefficiencies in the way processes are carried out.
In the banking sector specifically, there is a lack of standardization in how loans are approved. This can lead to a lengthy and complicated process for borrowers and delays in getting the money they need.
RPA can help automate the loan approval process, making it quicker and easier for borrowers to get the money they need. If a loan request meets all the criteria (rules) for approval, the RPA software can automatically approve it and trigger the release of the funds. That would speed up the process and make it more efficient.
3. The High Cost of Compliance
Like most countries, Mexico's financial sector is subject to a number of regulations that can be costly to comply with.
There is AML (anti-money laundering), KYC (know your customer), and GDPR (general data protection regulation).
RPA can help by automating many of the tasks associated with compliance. Every day, you could save hours on identity verification, document management, and data compilation.
4. The High Cost of Customer Acquisition
Another challenge facing Mexico's financial sector is the high customer acquisition cost. Finding and onboarding new customers can be expensive and time-consuming. This is due in part to the country's large size and diverse population.
With RPA, lead capture and customer onboarding can be automated. For example, RPA software can be used to automatically extract data from online forms. The robot can then populate it into the CRM (customer relationship management).
The Future of RPA in Mexico's Financial Sector
The future of RPA in Mexico's financial sector is very bright. As the country's economy continues to grow, so will the demand for RPA services. Artificial intelligence is a big part of the future of RPA since it will enable software to become even more intelligent and efficient.
We predict that more and more financial institutions in Mexico will begin to adopt RPA in the coming years as a way to improve efficiency, reduce costs, and stay compliant with regulations.
Mexico is already seeing a surge of RPA in the manufacturing industry and we expect the same in the financial sector. With the benefits it can offer, the RPA impact on Mexico's financial markets is sure to make a splash.
As a leading player in the industry, CPQi has seen firsthand the benefits that RPA can bring to businesses. We are excited to see how it will transform Mexico's financial sector and help companies overcome the challenges they are facing.
CPQi is owned by Exadel