In a recent article published by Bank Automation News, Beji Varghese, partner at Guidehouse, discusses the benefits of defining Key Performance Indicators (KPIs) before implementing the use of robotic process automation to better understand the efficiency and return on investment that bots provide financial institutions.
“Defining the process and measuring before deploying bots is a key strategy for establishing KPI benchmarks. Such Pre-bot measurements will allow banks to determine, for example, reduced error rate from bot deployment, said Beji Varghese, who specializes in working with financial institutions as a partner with the private consultancy Guidehouse.
Documenting and measuring a process before automating it is key to creating a good KPI, Varghese said. One of his clients used a bot to automatically pull research information from six different systems, he said, adding that a useful measurement for that particular bot would include accuracy because, unlike humans, a bot will never miss a system.
While there’s no formula for measuring bot efficiency, financial institutions “have to get down into the details to be able to say ‘these are the four or five things that are going to get more efficient,” Varghese noted, adding that it is important to measure KPIs over time, because a bot may take time to show a return on investment.”