Keystone of digital transformation in banking and finance – ERP Today

Technology is now at the heart of the operations of almost every modern business, and this is especially true for organizations in the financial sector. But as the industry embraces digital transformation, are business leaders overlooking a critical way to ensure they deliver the experiences customers need, while lowering their own costs?

Driven by consumer demand, businesses in banking and finance are leveraging technologies ranging from the cloud to artificial intelligence to improve customer experience, increase efficiency and win new business. This shift has progressed to an extent few would have predicted, with 85% of CEOs accelerating digital initiatives despite pandemic challenges, according to research by Deloitte.

However, these companies must first understand What transform, and if the progress they make actually works, that’s where process mining offers an opportunity. Process mining helps companies understand their operations in a way that was previously impossible, by gaining insights into how their business processes actually work, rather than how they think they might work, to really succeed in their digital transformation.

Failing the jump

For quite some time now, banking and finance companies have been trying to keep up with the latest technology, at the risk of being overtaken by digital native competitors if this is not the case. Faced with start-ups and challenger banks powered by technologies such as machine learning, incumbents can no longer afford to wait.

While the pandemic has accelerated the shift to digitalization, obstacles remain for businesses in 2022, according to a study by The Hacket Group. The study reveals that business leaders are not engaging in digital projects due to fears of inflation, skills gaps and productivity.

Businesses must act quickly to embrace digital transformation. Acting like an X-ray machine for processes within a company, process mining looks for points where processes get stuck, causing delays or costly manual interventions.

Process mining provides the data and insights leaders need to eliminate costly delays and delays in their business operations and underpins successful digital transformation. Being able to find gaps in business processes that impact customers and their needs is the first step to making businesses more efficient and resilient in dealing with today’s supply chain and business disruptions. as well as the challenges of inflation.

However, there is still much to learn, and many business leaders are unaware of the full capabilities of process mining and execution management and their potential for increasing business efficiency. ‘company. This is one of the reasons why some banking and financial service providers lose out to their competitors.

How Process Mining Can Drive Success in Banking and Finance

Process mining can accelerate and improve the efficiency of the entire value chain in banking and finance. It works by using data generated from business processes, which is recorded in “event logs” by business software. Event logs are recorded in scenarios like when a customer makes a request, a complaint is handled, or a new credit application is made. Each step in the process generates its own event log that the software can analyze. Therefore, process mining can be applied to almost any process within banking and insurance companies.

Mining helps understand how processing actually works
by measuring the commercial impact

Process mining works at all stages of every process. This means leaders are not limited to streamlining one part of the organization, but are able to see the big picture and see possible starting points for a full digital transformation spanning multiple divisions. of the company.

The technology digs into standard business data, makes it transparent, and reveals hidden inefficiencies where manual processes slow down the organization. It’s designed to “smooth out” problems that take time, create inefficiencies, and waste businesses money. As companies adopt new digital processes, process mining can identify issues as they arise.

Why execution management issues

Execution management works alongside process mining to generate intelligent fixes that improve business performance, by taking the data and insights provided by process mining and translating it into action. Once inefficiencies are identified, execution management presents recommendations for the next best action to eliminate the inefficiencies. Business leaders can see where these inefficiencies lie and speed up and automate processes where necessary. This translates to satisfied customers, happier employees, and increased profits, as well as reduced rework, better conversions, and a more efficient workforce.

Process mining and execution management helps banks in everything from regulatory reporting to payment processing, by identifying “pain points” where unnecessary manual interventions are present and enabling managers to automate them .

For example, process mining can highlight related cases that are directed to multiple agents, rather than being grouped together and directed to a single team or agent. Such interventions can significantly reduce overall case volume, free up employee time and reduce costs. Even in high-volume products such as foreign exchange, process mining can automatically and continuously map processes, providing insight into where failures are occurring.

Banks using process mining and fulfillment management reported being able to process credit applications up to four times faster and cut retail process turnaround time by six months .

As companies transform, process mining helps leaders understand how their transformation is really happening work also, by measuring the impact on the company. This means that at every step, technology can “eliminate” time-consuming manual steps and accelerate institutions on the path to seamless automation and greater efficiency.

It can also help deliver enhanced consumer-grade customer services that people have come to expect in the workplace. According to a McKinsey 2020 report.

Providing a good customer experience is a business imperative. Process mining and execution management allow companies to continuously assess in real time how customers are responding, eliminate inefficiencies, and take action in customer service. For businesses that need to digitally transform, data, insights and actions are invaluable, both before, during and after the transformation process.

Delivering a frictionless future

Banking and financial services industries need to leverage process-generated data and information to reduce friction so that their businesses can operate at maximum levels of efficiency.

Process mining and execution management delivers key data, insights, and actionable benefits while reducing risk and quickly delivering value in days and weeks instead of months.

Process mining gives business leaders visibility and process insights, and execution management provides the actions they need to take to implement truly seamless digital transformation initiatives. It’s the key for banking and financial services companies to reach levels they never thought possible.

Nick Mitchell is Vice President and Country Director UK&I at Celonis