Business Process Management (BPM) is the capsule engulfing all the methods, tools and techniques used to make business processes more effective with a higher degree of flexibility.
As the name implies, BPM is centered on process improvement. It uses information technology and management tools to ensure that an organization’s operating processes are helping the organization keep pace with the demands of a changing marketplace. Business process management techniques for Banking and Financial sectors help organizations align their operational processes with their business objectives and strategy. In this blog, you will be getting an insight on the ways to improve BPM for banks using Simple CRM.
Why Banks Need BPM?
The customers are very demanding as they have financial expectations of higher standards and they expect the bank to respond very quickly. This is only possible if the bank introduces more innovative strategies and products and achieves extraordinary customer satisfaction. In this highly competitive industry, banks and other financial service providers have little room for error and can quickly lose the customers who feel their needs are not met.
Banks are facing a lot of challenges due to competition and they want an organized software for creating business processes delivering products and services so that they can attract customers by meeting their needs fully and quickly and retain them.
Three elements of BPM can help banks face an increasingly competitive marketplace:
Agility – BPM helps in process automation facilitating the organizations to quickly adapt to constantly changing customer demands and dynamic business conditions.
Transparency – The process automation feature of BPM allows banks to monitor their performance in real-time. It also enables them to understand how processes impact their business objectives and strategies.
Effectiveness – BPM helps banks determine the optimal level of performance for their processes and helps organizations achieve optimal performance levels. After compliance with one optimal performance, BPM establishes permanent controls to sustain effectively.
How does BPM Solution Help?
SimpleCRM’s Business Process Management (BPM) tool helps in design, modeling, execution, monitoring, and optimization of key business processes related to customer relationship management. The BPM module enables business users to design and automate their sales, ticketing or marketing workflows through a drag and drop interface. This helps the organization to measure and execute crucial business processes as per the defined Service Level Agreements (SLAs) and also helps in reducing reliance on manual, error-prone tasks, thereby freeing up people to concentrate more on customer engagement and business development activities. More benefits are explained with Case studies of few leading Banks and Insurance companies in Asia
BPM Module Benefit –Sharia Approval Case
To understand and comply with customer requirements and create a competitive edge across the other financial institutions in the region the bank set a goal to drastically reduce the loan processing time. The goal to reduce loan processing time was complicated by the fact that the bank was required to comply with Sharia, a set of Islamic laws based on the Quran. Therefore, all transactions, contracts, and products must be approved by Sharia scholars before the new product could be certified and deployed. If the bank’s software solution for reducing loan processing time was found to be non-complaint with Sharia law, the new process would be delayed and expensive software coding modifications would be required.
Benefits of BPM in the banking industry
BPM promises real benefits for the banks who apply it. A newly-founded bank with over 200 branches in the Middle East recently realized a problem with its loan processing system. The system required two days to process a loan.
Banks and other organizations seeking similar agility and effectiveness in meeting their customer needs would do well to follow one of the core concepts of BPM: focus on process improvement.
Using BPM monitoring methodology, analyze and control business processes gives organizations the ability to respond quickly to customer needs, to understand the impact of changes in the process and to bring daily operations into harmony with the organization’s goals and strategy.
8 Effective tips for process improvement of BPM
There are eight simple-yet-effective ways to improve processes and enhance operations at Middle market bank, from the most everyday items to long-term process control:
Identify the highest priorities and focus on them: It is a good practice to organize your to-do list with the five items of high priority at the top on a daily basis and instruct your employees to do the same. Having an unorganized task list keeps you from tackling the most pressing items and dampens corporate morale when little seems to have been accomplished. Just make sure that your daily “top five” list is doable – you may need to break down your larger deliverables into smaller tasks.
Conduct Meetings in an effective manner: Communication is the number-one success factor in keeping your banking operations flowing smoothly. Ensure you hold a daily huddle with your team of employees and ask for their top five priorities for the day. Keep the meeting brief though:
Concentrate on workplace improvement: Whether your employees are on a trip to their supervisor, a meeting or the restroom, office layout has a significant effect on time savings and long-term efficiency. Remodel your corporate bank office according to each employee’s daily needs, like printer usage or access to critical team members and project managers. Over time, you’ll eliminate or reduce thousands of employee trips across the office.
Organize and file the tasks in a consistent manner: Finding files, referencing lost reports and navigating version control is a waste of time for your banking employees. Instead, the most effective way is to organize your files (whether paper or electronic) in a consistent, intuitive manner. The time you invest in developing a system returns in huge cost efficiencies over the long term.
Trigger points need to monitored frequently: It is important to monitor the trigger points for process improvement and you need to define basic process standards for all of your operations. These metrics and triggers should alert you when to take action if a particular measure is underperforming, exceeding the budget or getting out of control. Trigger points keep your bank operating more efficiently because you’re warned immediately when key metrics aren’t performing as planned.
Visual representation of process control systems: Visual control systems include any platform of signs, displays, and devices in your bank’s workflow that help you identify the current step in a process, the schedule for the next task in a project or any current problems in the process. Visual controls vary for every corporate bank setting, but the interface of your visual control system should be intuitive and help employees work more effectively.
Perform a Takt Board Analysis: Takt is the German word for a conductor’s baton, and developing a Takt board helps you appropriately keep time over your bank’s processes, balancing your operations time with customer demands. Regular and consistent Takt board analysis helps you align your employees’ efforts with the correct amount of resources, time and other staff to match the needed outputs for customers and internal functions.
Better to follow data dashboards: SimpleCRM Customer 360 for banks and financial industry with data dashboards help you monitor your daily banking operations and your long-term business process improvement efforts. Their easy visual display also helps you identify problems more efficiently. As a data-driven decision-making tool, dashboards give you deeper visibility into your processes by providing solid, actionable numbers and metrics to you and your employees. Start implementing these tips today and your middle-market bank reaps the returns for years to come.