The document outlines the challenges banks face, including competition from fintechs, evolving customer expectations, regulatory pressures, and the need for technology modernization. It emphasizes the importance of intelligent banking processes that enhance revenue, customer satisfaction, and compliance through automation, integration, and alignment of corporate goals with actions. Key focus areas include optimizing the customer journey and leveraging intelligent automation tools for improved efficiency and compliance.

1. Intelligent Banking
Processes
Improve Revenue, Competitive Differentiation, Costs and Compliance
Through Improved Control Over Business Processes
Copyright Kemsley Design Ltd., 2020 4

2. Today’s Challenges in Banking
Copyright Kemsley Design Ltd., 2020 5

3. Challenge #1: New Competitors
• Online brands of traditional competitors
• Online-only brands
• FinTechs
Copyright Kemsley Design Ltd., 2020 6

4. Challenge #2: New Business Models and
Products
• Aggregator of third-party services
• Self-service for high-net-worth customers
• Low-cost/“starter” products
• Ethical investments
• Mobile payments
• Automated financial recommendations
Copyright Kemsley Design Ltd., 2020 7

5. Challenge #3: New Regulations/Risks
• KYC/AML
• GDPR
• Impact of RegTech
• Non-financial risks, e.g., cybersecurity
Copyright Kemsley Design Ltd., 2020 8

6. Challenge #4: New Customer Expectations
• Modern online presence
• Personalized experience
• Omnichannel access
• Instant response/automated processing
• Decreased loyalty/multiple banks
Copyright Kemsley Design Ltd., 2020 9

7. Challenge #5: Technology Modernization
• Modernization is critical for meeting business challenges
• Straight-through real-time processes
• Integration with third parties
• Ability to quickly create new products
• Agile regulatory framework
• Modern online customer experience
• Retire/isolate legacy systems
• Retrain/hire staff for new technology paradigms
Copyright Kemsley Design Ltd., 2020 10

8. What Are We Trying To Achieve?
Copyright Kemsley Design Ltd., 2020 11

9. Top-Level Growth Goals
• Revenue increase
• Customer satisfaction
• Wallet share
• Competitive differentiation
• Culture of innovation
• Agility
Copyright Kemsley Design Ltd., 2020 12

10. Top-Level Cost/Risk Goals
• Cost reduction
• Efficiency and productivity
• Modernization and automation
• Compliance and risk management
• Process and rules oversight
• Security
Copyright Kemsley Design Ltd., 2020 13

11. Achieving Goals: Two Dimensions
• Vertical alignment
• Ensure that your top-level goals are driving departmental
actions
• Horizontal integration
• Understand and measure end-to-end processes
Copyright Kemsley Design Ltd., 2020 14

12. Linking Goals To Actions
15
Corporate
purpose
•Outward-facing view of what the company does; value proposition
•Goals are explicit measurement of corporate success
Business
capabilities
•Services provided to customers
•Capability KPIs must be aligned with corporate goals
Business
functions
•Internal processes that support business capabilities
•Process metrics must be aligned with capabilities KPIs
Tasks
•Activities of teams and individual contributors within processes
•Performance measures must be aligned with process metrics to ensure
that employees are rewarded for contributing to corporate goals

13. Understanding The Customer Journey
• The customer journey is the only process that matters
• Make end-to-end process owners responsible for
customer success factors
• Conway’s Law:
“organizations design systems that mirror their own
communication structure”
Copyright Kemsley Design Ltd., 2020 16

14. What Are Intelligent Processes?
Copyright Kemsley Design Ltd., 2020 17

15. Characteristics Of Intelligent Processes
• Strategic scope
• End-to-end process covering entire customer journey
• Integrate functional silos
• Automated where possible
• Process, decision and task automation
• Self-learning via AI/ML
• Agile to allow changes
• Model-driven processes and decisions
• Service-oriented capabilities
Copyright Kemsley Design Ltd., 2020 18

16. Intelligent Automation Tools Landscape
• Modeling and analysis
• Process/decision modeling
• Process mining
• Simulation
• Monitoring
• Performance visualization
• Predictive analytics
• IoT/digital twin
• Automation
• Capture
• Tasks (RPA)
• Processes (BPM/DCM)
• Decisions/rules
• AI/ML
• Event handling
Copyright Kemsley Design Ltd., 2020 19

17. Combining Technologies:
One Size Does *Not* Fit All
• Modernization
• Gradual replacement of monolithic applications with
intelligent automation technologies
• Designing for agility and scalability
• What technology to use when?
• Application architecture/templates
• Case management
• Straight-through processing
Copyright Kemsley Design Ltd., 2020 20

18. Creating Intelligent Processes
Copyright Kemsley Design Ltd., 2020 21

19. Use Case: Onboarding and KYC
• Key to risk mitigation and compliance
• The challenge:
• Document-intensive
• Manual processes and decisions
• Multiple systems
• Can require requesting additional documents from customer
• Long completion time can deter customer
Copyright Kemsley Design Ltd., 2020 22

20. Understanding Your Onboarding Process
• Process modeling
• What you think happens
• Process mining
• What really happens
• Customer journey map
• What the customer sees
Do these match?
Copyright Kemsley Design Ltd., 2020 23

21. Designing Intelligent Onboarding
• Automate everything possible:
• Collection of documents from customer
• Analysis of customer information
• “Next steps” decisions
• Alerts/reminders
• Escalation triggers
• Human intervention only when required
Copyright Kemsley Design Ltd., 2020 24

22. Intelligent Onboarding Results
• Faster time to completion
• Fewer internal resources
• Customer in control
• Greater consistency
• Lower risk/higher compliance
Copyright Kemsley Design Ltd., 2020 25

23. Thanks!
Sandy Kemsley
sandy@kemsleydesign.com
Read my blog at column2.com
Find me on Twitter @skemsley
Copyright Kemsley Design Ltd., 2020 26