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1
USE CASES FOR BPM IN
THE BANKING INDUSTRY3
2
Time to open a new account in retail banking
5 minutes – best
76 minutes – worst
Availability of loan funds
2 days – bes...
3
Yet, customer service is the #1 factor for both
customer acquisition and retention in banking.
Source: Boston Consulting...
4
Top performers are serving customers faster
and more intelligently,
and are better positioned to take advantage of
oppor...
5
So, what lies behind their success?
6
They’re banking on
BPM & Decision
Management.
7
“BPM today plays a critical role in driving
customer experience initiatives…from
companies looking to overhaul customer
...
8
How are BPM and Decision Management
driving better banking?
9
Process-Led Transformation in Banking
Customer Focus
and Innovation…
…driven by data
analysis & behavioral
insight
10
Customer Focus
and Innovation…
…driven by data
analysis & behavioral
insight
Streamlined
Operations…
…through process
v...
11
Customer Focus
and Innovation…
…driven by data
analysis & behavioral
insight
Streamlined
Operations…
…through process
v...
12
Customer Focus
and Innovation…
…driven by data
analysis & behavioral
insight
Streamlined
Operations…
…through process
v...
13
Customer Focus
and Innovation…
…driven by data
analysis & behavioral
insight
Streamlined
Operations…
…through process
v...
14
So how does it
work?
Here are 3 practical
use cases.
Loan Origination
Fraud Management and
Compliance
Customer Care and...
15
Example 1:
Loan Origination
16
Benefits of BPM for Loan Origination
Provide individualized financial advice during credit application
17
Benefits of BPM for Loan Origination
Provide individualized financial advice during credit application
Deliver a more p...
18
Benefits of BPM for Loan Origination
Provide individualized financial advice during credit application
Optimize cross-s...
19
Benefits of BPM for Loan Origination
Provide individualized financial advice during credit application
Optimize cross-s...
20
Benefits of BPM for Loan Origination
Provide individualized financial advice during credit application
Optimize cross-s...
21
ZUNO BANK AG
Vienna, Austria
Challenge
Build a loan application process to achieve
end-to-end process control and highe...
22
Example 2:
Fraud Management and Compliance
23
Monitor transactions in real-time to identify and take action on
suspicious activity
Benefits of BPM for Fraud Manageme...
24
Monitor transactions in real-time to identify and take action on
suspicious activity
Accurately assess the threat level...
25
Monitor transactions in real-time to identify and take action on
suspicious activity
Handle a variety of transaction ty...
26
LEADING RETAIL BANK
Challenge
Improve the effectiveness of risk
management operations while reducing the
daily staff wo...
27
Example 3:
Customer Care and Insight
28
Improve customer segmentation and conduct targeted marketing
campaigns
Benefits of BPM for Customer Care
and Insight
29
Improve customer segmentation and conduct targeted marketing
campaigns
Optimize sales processes such as account opening...
30
Improve customer segmentation and conduct targeted marketing
campaigns
Enhance service processes such as case managemen...
31
LEADING EUROPEAN BANK
Challenge
Build a flexible infrastructure that would
deliver a consistent customer experience
acr...
32
Putting BPM and Decision Management into
Practice at Your Bank
33
SMARTER PROCESS…
is IBM’s approach to Business Process
and Decision Management.
We’re focused on helping your
business ...
34
Experience. Our install base
includes over 5,000+ active
implemented customers and 800+
business partners
Market Leader...
35
“We now have tools to map out, study and
improve all of our processes. They are user
friendly and logical. I’m excited ...
36
Video series: Smarter Process for Banking
ibm.co/1D9RXVz
Whitepaper: Smarter Process in the Age of the
Customer ibm.co/...
37
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3 Use Cases for BPM in the Banking Industry

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Customer service is the number one driver of customer acquisition and retention in the banking industry. BPM and Decision Management can help you serve your customers faster and more intelligently, all while driving efficiency and optimization into end-to-end processes.

This presentation covers three use cases for BPM in banking:
- Loan origination
- Fraud detection and compliance
- Customer care and insight

Utilize these resources to learn more about these use cases or explore other ways that banks can benefit BPM and Decision Management:

Video series: Smarter Process for Banking ibm.co/1D9RXVz

Whitepaper: Smarter Process in the Age of the Customer ibm.co/1Dy8gJQ

eBook: Smarter Process for Dummies ibm.co/1zbo4T1

Published in: Technology

3 Use Cases for BPM in the Banking Industry

  1. 1. 1 USE CASES FOR BPM IN THE BANKING INDUSTRY3
  2. 2. 2 Time to open a new account in retail banking 5 minutes – best 76 minutes – worst Availability of loan funds 2 days – best 37 days – worst Time for conditional mortgage approval 15 minutes – best in class 4 hours – median There is a widening gap between the best performers and the worst performers in banking operations. Source: Boston Consulting Group, The “New New Normal” in Retail Banking, 2012
  3. 3. 3 Yet, customer service is the #1 factor for both customer acquisition and retention in banking. Source: Boston Consulting Group, “Customer-Centricity in Retail Banking”, 2012.
  4. 4. 4 Top performers are serving customers faster and more intelligently, and are better positioned to take advantage of opportunities afforded by mobile, social, cloud & analytics.
  5. 5. 5 So, what lies behind their success?
  6. 6. 6 They’re banking on BPM & Decision Management.
  7. 7. 7 “BPM today plays a critical role in driving customer experience initiatives…from companies looking to overhaul customer service processes to companies seeking to deliver more compelling experiences that incorporate big data analytics and real-time guidance.” Source: The Forrester Wave: BPM Suites, Clay Richardson & Derek Miers, 2013
  8. 8. 8 How are BPM and Decision Management driving better banking?
  9. 9. 9 Process-Led Transformation in Banking Customer Focus and Innovation… …driven by data analysis & behavioral insight
  10. 10. 10 Customer Focus and Innovation… …driven by data analysis & behavioral insight Streamlined Operations… …through process visibility & optimization Process-Led Transformation in Banking
  11. 11. 11 Customer Focus and Innovation… …driven by data analysis & behavioral insight Streamlined Operations… …through process visibility & optimization Increased Speed to Market… …implement policy changes in real- time, not weeks or months Process-Led Transformation in Banking
  12. 12. 12 Customer Focus and Innovation… …driven by data analysis & behavioral insight Streamlined Operations… …through process visibility & optimization Increased Speed to Market… …implement policy changes in real- time, not weeks or months Reduced Risk and Costs… …via and accurate consistent enforcement of guidelines Process-Led Transformation in Banking
  13. 13. 13 Customer Focus and Innovation… …driven by data analysis & behavioral insight Streamlined Operations… …through process visibility & optimization Increased Speed to Market… …implement policy changes in real- time, not weeks or months Reduced Risk and Costs… …via and accurate consistent enforcement of guidelines Improved Regulatory Compliance… …increased transparency and comprehensive audit trails Process-Led Transformation in Banking
  14. 14. 14 So how does it work? Here are 3 practical use cases. Loan Origination Fraud Management and Compliance Customer Care and Insight
  15. 15. 15 Example 1: Loan Origination
  16. 16. 16 Benefits of BPM for Loan Origination Provide individualized financial advice during credit application
  17. 17. 17 Benefits of BPM for Loan Origination Provide individualized financial advice during credit application Deliver a more personalized customer experience
  18. 18. 18 Benefits of BPM for Loan Origination Provide individualized financial advice during credit application Optimize cross-selling to drive share of wallet growth Deliver a more personalized customer experience
  19. 19. 19 Benefits of BPM for Loan Origination Provide individualized financial advice during credit application Optimize cross-selling to drive share of wallet growth Improve risk management Deliver a more personalized customer experience
  20. 20. 20 Benefits of BPM for Loan Origination Provide individualized financial advice during credit application Optimize cross-selling to drive share of wallet growth Improve risk management Make smarter decisions in real time Deliver a more personalized customer experience
  21. 21. 21 ZUNO BANK AG Vienna, Austria Challenge Build a loan application process to achieve end-to-end process control and higher automation rates. A dynamic business process management platform to facilitate loan processing Benefits • Business-oriented solution with a quick implementation process • Increased efficiency in handling voluminous transactions • Reduced processing time due to higher automation Solution A BPM solution that facilitates a robust process flow from an internet originating loan application until the final account opening in the core banking system. Complex IT environment (internet banking site, multiple internal and external databases, a business rule management system for credit decisions, a core banking system and a data warehouse). IBM and IBM Business Partner MOViLES
  22. 22. 22 Example 2: Fraud Management and Compliance
  23. 23. 23 Monitor transactions in real-time to identify and take action on suspicious activity Benefits of BPM for Fraud Management and Compliance
  24. 24. 24 Monitor transactions in real-time to identify and take action on suspicious activity Accurately assess the threat level in relation to customer impact Benefits of BPM for Fraud Management and Compliance
  25. 25. 25 Monitor transactions in real-time to identify and take action on suspicious activity Handle a variety of transaction types across multiple channels, including web and mobile Accurately assess the threat level in relation to customer impact Benefits of BPM for Fraud Management and Compliance
  26. 26. 26 LEADING RETAIL BANK Challenge Improve the effectiveness of risk management operations while reducing the daily staff workload. Rules-based risk management for more agile banking operations Benefits • Automation frees employees to focus on high-value cases • Detection more than 200,000 high-risk cases a day, with appropriate next action taken • Linkage of risk management and commercial divisions, providing holistic view Solution The bank used a business rule management system (BRMS) to create a more flexible and proactive solution. The BRMS-based solution assists client managers in the detection and daily handling of risks, reducing staff workload. The new solution also moves the bank from an event-driven approach to a client-driven approach, providing more relevant information for decision-making. By focusing proactively on client information rather than responding to events, the bank can manage risk more effectively.
  27. 27. 27 Example 3: Customer Care and Insight
  28. 28. 28 Improve customer segmentation and conduct targeted marketing campaigns Benefits of BPM for Customer Care and Insight
  29. 29. 29 Improve customer segmentation and conduct targeted marketing campaigns Optimize sales processes such as account opening, lending and dynamic product bundling Benefits of BPM for Customer Care and Insight
  30. 30. 30 Improve customer segmentation and conduct targeted marketing campaigns Enhance service processes such as case management and dispute management Optimize sales processes such as account opening, lending and dynamic product bundling Benefits of BPM for Customer Care and Insight
  31. 31. 31 LEADING EUROPEAN BANK Challenge Build a flexible infrastructure that would deliver a consistent customer experience across channels and reward customers with loyalty offerings on demand. . Tailored offerings and promotions for customers, on-demand Benefits • Reduced time-to-market for new products from months to days • New offers can be created and deployed almost in real-time • Substantial cost savings realized through improved staff productivity and decreased IT complexity Solution The bank built a single repository that captures and maintains all of its data across brands and channels, and provides a 360-degree view of each customer. With this data, the bank can now quickly identify the best product to meet each customer’s needs and develop customer loyalty offerings based on a customer’s profile. Creating a single view of each customer enables the bank to rapidly build new products and promotions.
  32. 32. 32 Putting BPM and Decision Management into Practice at Your Bank
  33. 33. 33 SMARTER PROCESS… is IBM’s approach to Business Process and Decision Management. We’re focused on helping your business put the customer first, all while driving efficiency and optimization into end-to-end processes.
  34. 34. 34 Experience. Our install base includes over 5,000+ active implemented customers and 800+ business partners Market Leadership. We are a Leader in Gartner’s Magic Quadrant for Intelligent Business Process Management Suites and in the Forrester Waves for BPM Suites and Dynamic Case Management Expertise. Our Global Smarter Process Center of Competency puts more than 650+ experts at your disposal Why IBM? Here’s Why…
  35. 35. 35 “We now have tools to map out, study and improve all of our processes. They are user friendly and logical. I’m excited that we’ve embraced the BPM technology and culture that supports the way we want to manage our business.” Source: LaTeca Fields, Business Analyst-Specialized Support Services, Lincoln Trust Company
  36. 36. 36 Video series: Smarter Process for Banking ibm.co/1D9RXVz Whitepaper: Smarter Process in the Age of the Customer ibm.co/1Dy8gJQ eBook: Smarter Process for Dummies ibm.co/1zbo4T1 Bank on IBM. Learn More About Smarter Process for Banking…
  37. 37. 37

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