When the pandemic began, financial institutions including banks scrambled to withstand the impacts of the crisis and eventually return to pre-pandemic operations. As the impacts of COVID-19 continue to shift customer behavior and redefine business operations, banks are increasingly digitizing their business processes. They are reviewing their internal workflows and evaluation opportunities to leverage technology to increase revenues, improve operational efficiencies and mitigate risk. According to the 2021 Financial Services Digital Transformation Survey, 61% of surveyed banks are adding new digital projects and 51% are revising their long-term strategic vision to achieve agility and resilience.
Process discovery helps banks and other financial institutions to understand end-to-end business processes to identify opportunities to improve and/or standardize them. Business processes are more spaghetti-like than businesses think they are. For instance, a common loan approval process might look simple in the standard operating procedure (SOPs). But in reality, several exceptions creep in and they need to be handled by deviating from SOPs. An automated process discovery tool like SurfaceAI uncovers such hidden in-depth, actionable information about the way complex processes actually get executed.
Here are 3 benefits of using process discovery for banking processes:
- Improve customer experience
A bank is a customer-centric organization. In the post-pandemic world, banks are competing to win the game with better customer service. Process discovery provides complete visibility into the in’s and out’s of all the customer interactions with a bank throughout a transaction’s lifecycle. To understand this better, let’s consider the loan approval process again. With process discovery, business leaders can understand the steps customers have to take and how long they have to wait for internal processing. This helps to identify bottlenecks and inefficiencies in the end-to-end process. Since a process discovery tool runs in the background without disturbing the users, there is no decrease in work productivity or efficiency.
- Automate more effectively
The most common challenge for any automation program is identifying the ideal process candidate. In fact, 41% of companies won’t switch to RPA because of a lack of clarity into their processes. Banks that rely on manual process discovery approaches are hindered by highly biased and subjective results while getting insights into only pieces of a process.
Automated process discovery provides complete visibility into “AS-IS” processes across common banking functions like transaction management and ledger processing, loan processing and disbursement, KYC verification and compliance, customer engagement, and more. With this insight, picking the right processes for automation becomes easy.
- Accelerate digital transformation
Traditional banking is a system of the past. Banks need to prepare for creating a digitized and connected tech ecosystem.
Insights from process discovery help to build business capabilities and drive digital transformation that can deliver both business benefits and value realization. It enables faster, data-driven decision-making at the CXO level. The comprehensive visibility helps leaders to identify hidden inefficiencies in the system to ensure change programs enable speedy improvement instead of blindly overhauling the entire system. Leaders can use the information to justify investments and efforts on relevant process transformations. Traditional process discovery approaches are far too time-consuming, inefficient, and inaccurate to support digital transformation programs. Sign up for a free custom consultation from our experts at SurfaceInsights to learn how you can leverage process discovery at your organization.