Robotics in securities operations

Abstract

With widespread interest in robotics, more and more firms are beginning to explore automation through proof-of-concepts and pilots. Traditionally, shared services has been the primary target of such ventures; however, investment banks are increasingly exploring if robotics could be extended into core processing functions. This paper, written on the basis of implementation experiences, examines activities across securities operations from trade processing, corporate actions, clearing and settlements, data management and onboarding to provide practical use cases for automation. Specifically, the paper identifies common repetitive and rule-based manual tasks across the areas mentioned above and discusses how robotic process automation can be used to reimagine the processes for greater efficiencies and control. Nevertheless, as with any new technology, there are challenges that may impede benefit realisation. Some of the challenges are structural in nature, such as process fragmentation, which may require front-to-back process redesign along with automation. Other challenges could be addressed with the right operating model, governance, opportunity qualification methods and infrastructure. Beyond cost savings, starting this journey and getting it right could position investment banks to benefit from the application of the next generation of exponential technologies.