Ebook Business Process Management in the Finance Sector
This has to be done against a background of increased complexity. Financial institutions today combine a wide range of product and service offerings, across banking, insurance and asset management. They operate in global and cross border markets. They have increasingly sophisticated and mobile customer bases. Increased regulatory vigilance and new corporate governance rules have the potential to add new layers of complexity and cost. And there continues to be consolidation, merger and acquisition in the sector.
For all these reasons the effective management of complexity and change is a key determinant of future success. Those who automate and streamline their operations most effectively will gain significant advantage.Integration is now more than ever the key to efficiency, enabling lower transaction costs and increased sales volumes. This is true for capital markets, for retail financial services, and for the corporate sector.
An integrated approach to business processes allows products, processes, systems, data and the applications that underpin them to evolve quickly. Whether it’s providing a loan, setting up an insurance policy, or executing an investment instruction, optimising the sale-to-fulfilment process will always win new business, cement customer loyalty, and reduce costs. Lack of integration across lending, payments and trading, on the other hand, simply presents competitors who are more efficient with a huge profit opportunity.
Integration and process optimisation not only has to extend across the enterprise, but must also embrace third parties who often supply key components of today’s complex, multi-instrument financial products. A mortgage offer for example will typically involve underwriters, insurers, the customer’s bank, credit reference agencies and others, as well as internal approval, accounting, collections, credit control, risk management, commission payment, incentive management, and business intelligence processes. Improve all the connections between all the elements of a transaction and performance automatically improves.
The problem is that established financial organisations still have numerous, disparate, proprietary back office systems which cannot keep pace. These limit the capabilities of even the most advanced front-end systems. The remodeling and implementation of new processes to meet the demands of dynamic change are severely constrained.
There are three objectives to aim for:
- driving greater efficiency and value from existing systems and processes
- managing the risks associated with dynamic change
- achieving greater visibility and flexibility across complex operations In this document we describe an approach to process management which delivers those aims.
We explore an integration layer that leverages the power of the latest business process execution tools, enabling business analysts and application developers to bridge the current process execution gap. We look at how this tool will allow the efficient re-use of existing process components and the applications that support them, to create new, more efficient processes, utilising a free flow of data and collaboration between all internal and external parties to a transaction.
At last financial institutions have a solution that allows them to cater for and anticipate change, allowing far greater operational and marketplace efficiency, while meeting regulatory and governance requirements.
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