Optimizing Core Banking Operation's ROI with Robotic Process Automation: A Case Study from a Leading Southeast Asian Bank

Abstract

This study identifies tasks suitable for automation using Robotic Process Automation (RPA) through process mining discovery techniques and user interface interaction logs. Employing a quantitative approach and empirical analysis, it evaluates RPA's impact on core banking operations in a top ASEAN bank. Key findings reveal significant enhancements in operational efficiency, such as reducing Loan Conversion time from 60 to 10 minutes per batch and Remittance Comparison time from 150 to 25 minutes per batch, resulting in substantial time savings and cost reductions. The ROI analysis indicates a quick recovery period, with ROI ranging from 0.33 to 0.67 months, underscoring RPA's financial viability. Additionally, the study notes a significant reduction in error rates, improved compliance, and auditability. By automating repetitive tasks, employee job satisfaction increased as they focused on more strategic activities. The study identifies organizational readiness, employee training, and technological infrastructure as key factors for successful RPA adoption in retail banking. This research highlights RPA's effectiveness in enhancing operational efficiency, reducing costs, ensuring quick ROI, and improving compliance, providing a theoretical foundation for future research in Information Systems and insights for successful RPA adoption in the retail banking industry.