‘BPM’ is a plus for banks

Story: Mark Holenstein,  COO of Signavio

Automation has become the norm for easier, safer transactions.

The term “business process management” (BPM) was adopted to identify the discipline of operations management. It’s used for various methods to discover, model, analyze, improve, and automate business processes.
The largest banks in the United States are investing millions of dollars to update their capabilities through automation. Financial institutions are at the forefront of technology and automating as many manual procedures as possible. In 2017, Chase Bank automated most of its teller-related procedures and eliminated more than 25 percent of employee expenses. Estimates say more than 90 percent of transactions performed by tellers will be executed through an ATM by the end of 2018, according to Chase.
The systematic approach behind automation that allows the technology to function and exist is a process management system. While implementing a BPM system allows automation of most, if not all, processes, it still does not provide detailed insight into cross system/cross people processes. For example, during the ATM process, a customer deposits cash and checks, then the ATM communicates the transaction to the bank. The customer logs in to their smartphone and checks the status almost immediately.
While these internal processes are performed through automation, rarely are they performed in a single system. The joined-up thinking implied by BPM provides banks with a seamless view of the transaction from beginning to end, which enables management to more easily optimize operations around the customer.
BPM also manages all aspects of internal monitoring. Any financial institution utilizing a process management system in support of its BPM initiative can monitor progress as well as see its organization from an overview perspective. Banks are more equipped to identify competitive advantages, establish internal processes, and deliver results.
BPM also supports meaningful operational intelligence. Process management systems that deliver real-time, actionable information are readily available. Because the size and complexity of daily tasks can be too much for one system to run, BPM enables banks to view systems as though they were running seamlessly as a single unit. The discipline of BPM and the use of a process management system can bridge the gap between information technology and business. There is no doubt that automation will play a growing role in business processes for years to come.

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