Technology plays a crucial role in a banking sector. With mounting competition, banking products and services have become a popular commodity. In order to stand out, banks have to offer an exclusive service to their clients to make them move down the customer lifecycle over and over again. This requires financial organizations to be very agile and flexible to meet ever-rising consumer demands. The rapidly developing social media and mobile technologies force banks to shift from a sales-oriented to a client-oriented approach in order to acquire and retain more clients.
Increasing financial inclusion, driving operational efficiency, regulatory compliance, omnichannel services, and risk management are the key priories for all financial organizations. The BPM banking software plays the main role in these areas.
BPM standing for Business process management is a digital tool aimed to help enterprises create business models that will optimize core business procedures within a company. BPM is a strategic resource of enhanced enterprise knowledge, increased customer service, improved corporate governance, and boosted overall efficiency.
BPM banking addresses the specific industry requirements:
- Bank mergers and acquisitions,
- Need for higher flexibility in the fiercely competing marketplace and current economic difficulties,
- Ability to align business with regulatory and compliance changes.
Why is BPM banking essential?
Well-managed processes are committed to ensure the security of key financial data and applications. The financial information involved in the core processes must be systematic and continuously monitored. An unauthorized access to clients’ personal or corporate information must be excluded. Compliance and regulations contribute to the necessity of streamlined and properly-documented processes.
Customers, in their turn, want to have a greater visibility into financial activities associated with their bank accounts. Without a strategic business model, financial institutions may fail to meet the regulatory and clients’ demands.
In order to overcome all these business challenges, banks with ever-increasing frequency implement the bpm’online software – the first IT-tool that provides:
- Account management: opening, maintenance, and cancellation,
- Accounts investigation,
- Alterations in rates monitoring,
- Approval and automation of credit cards,
- Audit management,
- Automated clearing house,
- Claim management,
- Credit scoring,
- Escrow, leasing, and financing services,
- Financial screenings,
- Insurance underwriting,
- Personal and private enterprise mortgage loans management (approvals and post-approval service),
- Processing of applications and loan requests,
- Promissory notes settlement,
- Risk approval,
- Risk management,
- Transactions processing and history,
- Wire and fund transfers.
This is what the BPM banking system is able to do in the financial sector. There are also other industries that can take advantage of bpm’online solutions. Follow https://www.bpmonline.com/crm to know how your company can benefit from BPM products.
How can financial institutions benefit from BPM banking?
Processes are at the core of all the business functions, whether a bank on-boards new customers, promotes a new banking product/service to the market, or builds applications for operational risk management. Business processes is a smart way to define and organize the key activities that will enable an organization to function well.
With comprehensive product capabilities, BPM banking platform helps stakeholders:
- Establish cost-effective processes that will align business and IT infrastructure around with the organizational goals;
- Determine critical workflows and assign the executives;
- Discover, analyze and optimize business processes with process intelligence solutions;
- Use information silos for improved business visibility;
- Leverage existing data and applications across a bank;
- Promote operational efficiency and reduce costs by introducing STP – straight through processes.
An integrated BPM banking suite enables companies to define their corporate strategy and map out, analyze, implement, and monitor running processes to establish continued process improvement. All bank employees get connected through a collaborative BPM environment and reliable process governance.
What does BPM banking offer?
Process Transformation tools of a BPM suite are meant for financial organizations that want to document, standardize, harmonize, streamline, monitor, and improve their business processes to achieve greater agility and efficiency. By deploying a BPM application, companies have considerably (up to 40%) reduced throughput time and process costs with savings that far exceed BPM investment costs. Process transformation is a project-based approach for the business processes analysis and optimization. Process improvements become aligned with organizational objectives, such as quality, costs, and time.
Process Automation aligns the strategy, operations, people and applications with corporate goals by using embedded Key Performance Indicators or KPIs to assess overall performance and productivity. This feature of BPM banking creates effective, visible, and agile business operations that empower a company to drive a competitive strength. With efficient, flexible, and transparent business processes, banks can quickly develop new process-centric applications by reusing services and increase productivity through a coordinated and intuitive workflow.
Process Intelligence.Bpm’online products encompass Complex Event Processing (CEP), Business Activity Monitoring (BAM), Business Intelligence (BI), and CRM (customer relationship management). These functionalities enable a bank to automatically estimate and visualize Key Performance Indicators (KPIs) in running business processes. If KPIs, such as quality, time, or cost go outside the permitted range, it is possible to identify the bottlenecks in a current business process. Corrective measures can be initiated in a real-time mode so that a company’s performance will never be affected.
How BPM banking works
Let us provide you with a real example of how the BPM system works:
Challenge: banks need a continuous insight into the credit process and live forecasts of incoming credit applications for the accurate resource planning. This real-time insight is necessary for banks to ensure compliance with daily SLAs.
Solution: a bank integrates a BPM system that has an embedded Complex Event Processing (CEP) engine. As a result, a bank gets a clear visualization of the key event data as it happens in the real time. Business Events filters correlate and aggregate relevant data on-the-fly to provide reliable Key Performance Indicators and forecasts, which are displayed on user-friendly dashboards.
- enhanced visibility: a financial organization is able to see ceaseless live process data from across different systems;
- better planning and forecasting;
- increased ability to align with daily SLAs;
- improved decision making due to insightful analysis and forecasts with historic and live process data involvement;
- elevated agility: a bank can react and adapt faster to changing market conditions.