Business Process Management (BPM) is an organizational discipline. The company takes a step back and analyzes the processes as a whole and individually. It can identify the business’s current situation and make it more efficient. It can reduce human errors, narrow the gaps, and improve the business’s efficiency. Organizations use various tools to attain effective BPM. The tools help organizations design, model, execute, monitor, and optimize processes. The business process coordinates people’s behavior, information, results, and systems of a business strategy.
Business process management is a key component of any modern-day financial institution. It is a set of tools and techniques that helps to streamline and simplify the organization’s business processes, thereby improving customer service, reducing costs, and increasing profitability. BPM is often used in the financial sector as it helps with decision-making and reporting, amongst other things. With the use of BPM software, organizations are able to standardize their internal processes. The efficiency of these processes is measured in how well they can complete tasks in a timely and accurate manner.
In this article, we will discuss how BPM has changed and how it will continue to shape the future of finance, as well as how the use of BPM in financial services can help to improve customer service, reduce costs, and increase profitability.
BPM in Financial Services
Over the past decades, the financial industry has started utilizing BPM. More and more bankers are becoming more tech-savvy as they can access their accounts online. Users expect convenience, speed, security, and accuracy in all their transactions. Financial institutions can handle change with effective BPM and provide efficient customer service.
BPM helps financial firms move towards full digital transformation and create bigger organizational goals. The change includes utilizing new tools, such as automating tasks and gathering data.
Key Advantages of BPM in Financial Services
Here are five key advantages of using BPM in financial services:
1. Compliance, Safety, and Security
Seasonal audits are common for financial institutions. Regulatory compliance management is challenging as policies and regulations get updated regularly. Unfamiliarity with the changes can result in the business’s loss.
At the same time, safety and security are two of the primary concerns of people. Bankers want to feel secure; thus, cyber security is critical in banking.
With adequate protection, more people would trust a financial institution. With BPM, organizations can easily follow regulatory compliance. The tools used for it allow the business to see what changes have happened. This will make it easier to comply with and follow the standards. Furthermore, BPM helps financial institutions be more secure and safe for people. You’ll be able to provide services while giving them peace of mind.
One of the tools for BPM is to automate repetitive transactions. For example, customers will receive the current balance via text message or email. They will have more visibility over their accounts, avoiding risks such as fraud. For instance, you can see any untrusted transactions from one of your customers. Using BPM, you can create a strategy to alert the person automatically. This will let them know if there is any suspected fraudulent activity using their account online.
2. Improved Business Agility and Flexibility
Businesses are changing nowadays, including financial industries. Most organizations are shifting towards technology to keep up with the growing market.
For example, many financial firms offer a straightforward account opening. Some don’t even require new people to go to their physical office. If a person wants to open a bank account, they can do it online. They can also use the organization’s app for easier access.
Since changes are happening quickly, it’ll be difficult for financial firms to keep up. Many consumers have been utilizing online applications for their financial transactions. They can transfer funds, pay bills, check balances, and shop using various apps and websites.
Using BPM will prepare the financial firm to adapt to the changes effectively. It’ll put the current process on hold, implement changes, and proceed with the new process. Financial firms can easily apply automation in their systems and other improvements in the future.
Since updates and changes often happen regularly, financial firms need to have BPM set up.
3. Higher Efficiency
Making the business more efficient and productive is essential. Financial firms process various forms and emails every day. They have to ensure that all clients receive the services they opt for.
The integration of business processes takes the potential improvement into action. With the correct data, financial services can monitor delays. They’d be able to avoid any risks and allocate resources if needed. Automation is one of the solutions regarding BPM. It removes repetitive tasks such as sending new information to the bankers. They can receive messages regarding their recent transactions.
Since there is automation, employees can become more productive. They’d be able to focus more on pressing matters that the customers may need assistance with. They can help them make their accounts more secure. Customers will feel more appreciated, thus resulting in a high retention rate. People will also have services available for them most of the time.
4. Better Visibility
Visibility is one of the most critical aspects of financing. Since all the transactions involve money, customers want to see how their cash flows. If customers can see their finances clearly, they’ll trust the bank or the financial firm more.
However, the visibility factor isn’t only for the consumers. Your financial firm can benefit from it, too.
You’ll be able to see and improve the team’s performance as the automation results are in real-time. Of course, you wouldn’t want the members to decrease their performance metrics scores. BPM software can let you see which factors they need to focus more on. You’d be able to identify which areas your business needs to improve and provide quality services inside and outside the firm.
For instance, if some members scored low in their KPIs, you can create a program. Under the training, they’ll be able to improve their skills. If you find that they excel in other areas of the firm, you can reassign their tasks. It’ll make the whole organization productive.
Visibility means building trust between your customers and your employees.
5. Enhanced Customer Experience
BPM streamlines business operations and drives automation so processes can run smoother and quicker. As mentioned above, employees can concentrate on more critical issues.
Automation handles repetitive tasks. For example, a customer wants to know the process of employee onboarding. Explaining the same information to all customers could take time. The people who need assistance more will be left unattended.
On the other hand, if customers have pressing concerns, your team can deal with them faster. Let’s say their card was stolen, and they would like to lock their account. It could already be too late if they would wait in a queue. If customers get reliable customer service immediately, they’d most likely remain loyal to your firm. They’d be happy to continue banking and trust you with their finances.
How Comidor Helps Financial Businesses in the Financial Services Industry
As the world becomes more digitalized, our use cases for finance are becoming more complex. We need to provide our clients with the best possible automation and application development solutions, and in order to do so we use advanced low-code and intelligent automation technologies. This is where our use cases for financial services come into play.
Applicants expect a fast, data-driven, and evidence-based approval or decline decision on their loan requests. The cognitive automation capabilities of Comidor make the loan request process smart while performing extremely complex tasks. The Comidor Machine Learning model is used to establish patterns based on historical data, resulting in a decision regarding a borrower’s creditworthiness. The ML model indicates a decision (approval or decline) based on the applicant’s financial information, such as their annual salary and credit score. After the model suggests a decision, the employee accepts or rejects it.
Supplier Due Diligence
Supplier due diligence is an important process in supply chain management. Suppliers are selected based on their ability to provide quality products and services. In this specific case, the need of our customer was to orchestrate and automate end-to-end the supplier due diligence process that included multiple levels of evaluation and approval. Comidor’s solution in this case was a powerful workflow with multiple parallel approvals, the ability to start the process from a 3rd-party system, and the ability to manually enter supplier data or upload them via CSV files. For every new supplier, a member of the Compliance team initiates the supplier due diligence process. Legal & Compliance, Credit Control, Treasury, and Account Payable departments will review the supplier’s details, and only if all of them approve the supplier can become active. A report with 4 departments’ reviews and comments is produced with Comidor RPA Document Creator.
The Bottom Line
Financial services are continuously evolving. Changes are coming, along with their daily tasks. With plenty of financial firms’ challenges, it’s time to step up and prepare.
Using BPM tools can help financial companies manage financial challenges much better and faster. You would be able to provide quality services. The onboarding will become more straightforward for the customers.
With the benefits BPM can give your financial institution, it’s all worth it. Your organization will continue to improve while keeping up with our fast-paced world.