The state of RPA in financial institutions 2024

Our recent survey, “State of RPA in Financial Institutions 2024,” explores the role of Robotic process automation (RPA) in the evolving financial sector. The following report provides insights into how organizations are leveraging RPA to enhance operations — examining its scope, application, challenges and impact. The survey included a diverse range of financial institutions, with asset sizes from under $1 billion to $100 billion and employee counts ranging from 250 - 5,000 across commercial, online and healthcare sectors.

The findings reveal varying levels of RPA adoption, from partial to full integration, showcasing how organizations are tapping into RPA’s potential. Key benefits include risk reduction, improved resource allocation, faster service delivery and enhanced client satisfaction, positioning RPA as a transformative force in the industry.

Key findings of the report

Over 80% of surveyed financial institutions are investing in either outsourcing RPA development or training and skill development of internal employees to build their RPA teams:

The data reflects a strong commitment to adapting to technological advancements. While outsourcing remains viable for many, a closer examination reveals a growing recognition of the strategic value in fostering internal expertise.

Institutions are increasingly realizing the importance of cultivating in-house talent to navigate the complexities around implementing and customizing automation technologies. This commitment is geared towards immediate needs and positions these institutions for long-term success in an industry undergoing continuous transformation.

The distribution of RPA team sizes among respondents reveals a diverse spectrum of adoption within the industry:

About 50% of respondents are currently engaged in small, targeted RPA projects, employing teams ranging from 1 to 3 members. This signifies a cautious approach, allowing organizations to test feasibility before broader implementation.

Over 20% of respondents have RPA teams ranging from 4 to 10 members, indicating a transition towards scaling RPA initiatives. This segment reflects a maturation phase, with organizations expanding their automation capabilities to encompass a broader range of processes.

The remaining, almost 20% of respondents, manage larger RPA teams, ranging from 11 to 25 members, highlighting major initiatives. This suggests a substantial commitment by organizations that have progressed to handling complex and extensive automation projects.

Looking forward, a notable percentage of respondents, comprising almost 50%, express a significant planned investment in RPA over the next three years. The remaining close to 50% plan to invest moderately, demonstrating a universal commitment across the surveyed organizations to incorporate RPA into their operational frameworks. About 90% of participating financial institutions will continue investing in RPA implementation in the next three years.

Almost 75% of respondents have partially implemented RPA in their organizations, while the remaining 25% have implemented it completely:

The numbers show a prevalent strategy of phased or incremental adoption of RPA among organizations, while others have deployed it across a broader spectrum of processes within their entire organizational framework. This distinction highlights diversity in adoption strategies, with most organizations choosing gradual integration while others opt for a more extensive and immediate implementation.

The data also suggests that organizations may be strategically assessing the impact of RPA on specific areas before committing to a full-scale implementation. It is essential to point out how the control over the degree of RPA implementation also allows organizations the freedom to tailor their adoption strategies based on their unique requirements and objectives.

Discussion on findings

The data reflects a strong commitment to adapting to technological advancements. While outsourcing remains viable for many, a closer examination reveals a growing recognition of the strategic value in fostering internal expertise.

Institutions are increasingly realizing the importance of cultivating in-house talent to navigate the complexities around implementing and customizing automation technologies. This commitment is geared towards immediate needs and positions these institutions for long-term success in an industry undergoing continuous transformation.

The numbers show a prevalent strategy of phased or incremental adoption of RPA among organizations, while others have deployed it across a broader spectrum of processes within their entire organizational framework. This distinction highlights diversity in adoption strategies, with most organizations choosing gradual integration while others opt for a more extensive and immediate implementation.

The data also suggests that organizations may be strategically assessing the impact of RPA on specific areas before committing to a full-scale implementation. The control over the degree of RPA implementation also allows organizations the freedom to tailor their adoption strategies based on their unique requirements and objectives.

“The impact of RPA is massive in financial institutions. Any organization not deploying it will be at a significant disadvantage,” said Niraj Patel, CIO at Greystone.

How we can help

Baker Tilly’s digital solutions team can help financial institutions navigate the evolving role of RPA in the industry. From assessing your current automation initiatives to developing and scaling RPA strategies, we provide insights and tailored solutions to maximize efficiency, improve resource allocation and enhance client satisfaction. Together, we can position your organization for success in an industry undergoing continuous transformation.