BPM for the banking industry
BPM for the banking industry
Creating value with BPM
A good understanding of the processes in the banking flow is essential to be clear about where automation can be implemented.
Customers
Customers are the main base of any banking institution. One of the basic day-to-day functions is the registration of new clients to the system, which can be a slow process and cause inconvenience to people. A bank that relies on manual processes to record and verify customer information must automate this process to go modern.
A BPM allows you to do this through websites, mobile devices, and third-party platforms, keeping your customers satisfied and saving staff hours of work that can be invested in other tasks.
Loans
One of the most exhaustive processes for any banking institution, where several steps must be completed prior to approval, making it one of the functions that can benefit most from the implementation of a BPM. A modern bank has fast and efficient loan processing systems to handle large volumes of requests, all across multiple platforms.
Having an automated system will save the banking institution tons of paperwork, delay in loan approvals, and possibilities of fraud and exempt the client from new requests.
Credit card approval
Approving and executing a credit or debit card order is a lengthy process that requires accurate data capture through multiple channels. Being done manually, this process requires time and effort, as well as being exposed to errors and inconsistencies.
The modern banking institution, by automating this function, significantly reduces the cost and processing time and guarantees 100% accuracy.
Main operations
In addition to the basic functions explained above, a bank has several main operations that benefit from an automated process. These operations include customer data updates, KYC validations, accounting reconciliations, and overdraft protection.
A manual update cannot provide the precision and speed that modern banking institutions need, this is when the implementation of an automated process is necessary to make these operations effective and fast.
Risk and compliance
Risk and compliance management is an important function in banking. Banks and financial institutions must be audit-ready at all times by updating their data and policies. Anti-money laundering and anti-fraud checks, KYC verification, and compliance checks can be done effectively through automation.
Implementing a BPM in a banking institute must be done in phases, we explain:
Identify
First, the main and most important processes of the institution are identified. All the processes between the departments and the bank's systems must be mapped. Then, identify the business rules, as well as the parties involved, systems, and tasks that are performed in the processes. In doing this, everything must be properly documented, as most banks do not have documented processes.
Assess
As its name suggests, in this step the team that will implement the BPM is responsible for evaluating the processes identified above, as well as the parties involved in these processes. Factors such as complexity, response time, number of systems involved, and the number of tasks will be taken into consideration before making the decision on which process should be implemented through a BPM.
Implementation
When you begin to implement a BPM in a banking institution, it is recommended that it be done in small processes that result in quick profits, and then gradually extend to more complex processes. Implementation will be done in phases, starting with single department processes and then expanding to all departments, adding one at a time.
Analysis
After implementing the BPM, it is thoroughly checked that all the processes are carried out correctly, complying with the pre-established parameters at the beginning, such as the response time of a task, costs, and bottlenecks.
Upgrade
Here the emphasis will be placed on problem areas, the banking institutions will reorganize tasks to improve performance. The ultimate goal is to reach the stage of continuous process improvement.
You can get these benefits by implementing a BPM in your bank:
- Optimization of critical processes
- Make quick decisions to effectively serve the customer
- Acceleration of customer management activities
- Raising the efficiency of mobile applications
- Reduce manual activities, thus saving operating costs
- Provide a complete overview of the reports, activities, and functions of the responsible departments
It is clear that the managerial and administrative processes of a bank improve substantially by implementing a BPM, managing to keep the client satisfied at all times since a quick solution to their needs can be given, this is key for a successful banking institution.
A good implementation of BPM occurred with the Superintendency of Banks of Panama where Rootstack carried out the structuring, design, and development of a web application, in order to automate and standardize the financial reports of banks not only in Panama but also in other countries. countries such as the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua.
By implementing a module, users of the application can easily review reports online, perform comparisons, as well as consult catalogs of tables with the codes used in said financial reports. Additionally, reports can not only be viewed from the site but can also be exported for review outside of the app.
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