Robotic Process Automation is entering the fabric of the asset management industry. Fund companies are aligning RPA with enterprise architecture by educating their staff in automation development, learning how to identify value-add business applications, and developing an appreciation for the true cost to run a shop that uses RPA. This webinar will consider several aspects of the maturing state of RPA in asset management, including real world examples and a deep dive into the key principles governing the use of RPA. Decision makers within asset management who are contemplating the adoption of RPA will benefit from this informative webinar, addressing issues such as: - Identifying value-add automation candidates - Assessing risks associated with RPA change events - Understanding the true cost / benefits analysis of ownership - HR policy implications of broad RPA adoption - Evolution and convergence of various levels of AI

1. PREPARED BY:
NICSA Technology & Innovation Committee
www.nicsa.org
A Closer Look at RPA
in Asset Management and
Financial Services
June 7, 2017

2. PREPARED BY:
NICSA Technology & Innovation Committee
www.nicsa.org
MODERATOR: PANELISTS:
Tom South
Executive Vice President, Chief Business Architect
Northern Trust
Paul Fahey
Senior Vice President
Northern Trust
Kelley Mavros
Partner /
Co-Lead of Fin Services Digital Labor Practice
Strategy& / PwC
Joseph Gabiger
RPA Lead Architect & Control Manager
BNY Mellon Investment Management

3. www.nicsa.org
Key Principals Governing the Use of RPA
 Delineate “what’s easy” from true value-add candidates
 Cost / benefit analysis
 Tangible “hard benefits” – upfront savings
 Intangible “soft benefits” – 24x7 workforce, reduced cycle times,
quality, agility, value focus talent
 On-going costs
 Technology maintenance
 Investment in people/processes
 Risk and controls management
 Change management
Up to 45% of human activities can be automated, with savings up to 30% less
than off-shore resources and less than 0.05% typical error rate

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Case Studies:
RPA in Asset Management
 Reconciliation
(e.g., recon matching,
exception routing, reporting)
 Pricing
(e.g., vendor pricing sourcing /
validation, manual price requests,
pricing validation)
 Reporting
 Data aggregation and remediation
 KYC
(e.g., compilation, alert creation /
monitoring)
Many organizations start RPA with “back office” functions such as reconciliation.
However, we’re seeing increased focus in other areas such as pricing and reporting.

5. www.nicsa.org
Implications of Large Scale Adoption of RPA
Company CultureHR Policies
Staffing shortfallsTechnology Strategy
 “Bots” as employees
 Workforce roles &
responsibilities
 Incentive structures
 RPA ownership
 Changing role of IT
 Technology roadmap
(e.g., AI, etc.)
 Innovation
 Agility
 Value / service focus
 Talent in the right roles
 Global process owners
 Embedded technology
expertise

6. www.nicsa.org
The Future of RPA
Organizations are using RPA as a “path” to intelligent automation,
considering both integrated and suites of technologies
Machine
Learning
Machine learning is
concerned with computer
programs that
automatically improve
their performance
through experience
Natural Language
Processing (NLP)
Algorithms that progress
human language input
and convert it into
structured
representations that can
be manipulated by
computer systems
Deep Learning
Branch of machine
learning that uses
artificial networks with
hidden layers to learn
representations of high
level concepts from very
low level data
Predictive
Analytics
Models that have been
trained using historical
data that can be used to
predict outcomes of new
data
Image
Recognition
The process of identifying
and recognizing patterns
in image or sets of
images for advanced
classification and analysis

7. PREPARED BY:
NICSA Technology & Innovation Committee
www.nicsa.org
To What Scale is Your Firm Implementing RPA?
 None
 Exploring our options
 Conducted one or more proof of concept(s)
 Enterprise adoption, but incomplete
 Full scale adaptation of at least one application

8. PREPARED BY:
NICSA Technology & Innovation Committee
www.nicsa.org
 Define a holistic strategy upfront | “PLAN FIRST, AUTOMATE LATER”
 Objectives
 Process re-engineering in conjunction with automation
 Broader firm innovation (e.g., customer analytics)
 Combine top down potential with bottom up rigor | “PRIORITIZE”
 Top to bottom analysis of process(es)
 Rapidly deploy technologies with measurable impact
 Govern to standards yet enable rapid deployment | “LIGHTWEIGHT, CENTRAL STRUCTURE”
 Best practices and training
 Architectural standard
 Vendor management
 Continuously evolve the toolkit | “ALIGN TO THE STRATEGY”
 Trade-offs and risks
 Enhance over time (e.g., machine learning, NLP, etc.)
Are You RPA Ready?

9. PREPARED BY:
NICSA Technology & Innovation Committee
www.nicsa.org
Questions

10. PREPARED BY:
NICSA Technology & Innovation Committee
www.nicsa.org
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