The Impact of Process Automation on Financial Institutions in 2024
Robotic procedural automation (RPA) has emerged as a driver of change in the financial arena. A recent Baker Tilly report, "The State of RPA in Financial Institutions 2024," provides a comprehensive look at how these technologies are being employed by financial institutions to optimize their operations. The study, based on a survey ranging from small community banks to large commercial entities with assets in excess of $100 billion, aims to understand the adoption of RPA, the challenges faced and the effect on overall industry performance.
Commitment to technology
A crucial finding of the report shows that more than 80% of the institutions surveyed are committing resources to RPA development, either through outsourcing or in-house training. This demonstrates a strong commitment to adapting to technological advances. Although outsourcing remains a feasible alternative, the strategic value of cultivating internal expertise is increasingly recognized. Fostering internal talent is becoming crucial to the implementation and customization of automation technologies, enabling institutions to meet immediate demands and prepare for long-term success in an ever-changing environment.
Scaling of RPA initiatives
The survey highlights the diversity in the implementation of Robotic Process Automation (RPA). About 50% of the participants are involved in small-scale projects. These projects are carried out by small teams of 1 to 3 individuals.
- This cautious and targeted approach allows organizations to assess the feasibility of RPA before embarking on larger and more complex implementations.
- More than 20% of the participants have teams composed of 4 to 10 members. This indicates a transition towards expansion and growth of RPA initiatives.
- At this more mature stage, there is an advancement in automation skills, which can now address a wider variety of processes.
Companies with teams of 11 to 25 members demonstrate significant commitment. This configuration is indicative of ambitious projects that require greater scope and complexity.
Benefits and challenges of RPA adoption
Implementing Robotic Process Automation (RPA) offers numerous advantages for organizations, significantly transforming their operations and strategies:
Risk reduction: By automating repetitive tasks that are prone to human error, organizations minimize operational risks, ensuring a more reliable and accurate process.
Better allocation of resources: The implementation of RPA allows employees to focus on high-value strategic activities, thus optimizing the use of human resources within the company.
Faster service: With RPA, companies can improve the speed of their operations, offering a faster and more effective service, which is key to staying competitive.
Increased customer satisfaction: The efficiency and speed gained through RPA can translate into improved customer experience and satisfaction as they receive higher quality services.
Despite its many advantages, RPA presents certain challenges that must be considered:
Merging with existing systems: Integrating RPA into established technology infrastructures can be complex, requiring a careful and planned approach.
Constant monitoring requirement: Despite their independence, RPA systems need continuous monitoring to ensure that they operate correctly and adapt to changes in processes.
Danger of job displacement: There is a risk that certain jobs will become obsolete as automated tasks require less human intervention.
Despite these challenges, the use of RPA also opens up new opportunities:
Acquisition of new skills: The evolution to a more automated environment provides employees with the opportunity to acquire new skills and take on more strategic roles within the organization.
Finally, Baker Tilly 's report "The State of RPA in Financial Institutions 2024" shows the significant commitment of financial institutions to use RPA as a tool for efficiency and innovation in operations. It highlights the relevance of developing internal skills, expanding RPA projects and addressing the challenges involved in implementing this technology. As financial institutions continue to grapple with an ever-changing digital environment, RPA will play a vital role in fostering their success and preserving their competitiveness in the global marketplace.
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