Achieving Process Excellence in Banking IT: Navigating Four Key Steps Beyond BPM Tools
In the fast-paced world of banking, the need for efficient and effective operations is paramount. However, automation on an unstable foundation often exacerbates existing inefficiencies and squanders potential. To address this challenge, Eric A. Leuer, Manager at Cofinpro, outlines a structured approach using Business Process Management (BPM) tools to optimize processes and enhance competitiveness in the banking sector.
The first step in this approach is Process Identification and Mapping. Identify core and supporting banking processes, and map these processes visually to gain a clear understanding and documentation of workflows. This step lays the foundation for future analysis and optimization.
The next step is Process Analysis. Analyse process performance, identifying bottlenecks, inefficiencies, and compliance issues. Use data from process execution to assess cost, time, and quality metrics. This step provides insights into areas that require improvement.
Process Redesign and Optimization follows, where processes are reengineered to eliminate waste and redundancies. Integrate automation and streamline activities with BPM tools to improve speed and accuracy.
The fourth step is the Implementation of BPM Solutions. Deploy BPM software to enforce optimized workflows through automation, real-time monitoring, and control. Ensure smooth integration with existing banking IT systems for seamless operations.
Continuous Monitoring and Improvement is crucial. Use BPM dashboards and analytics to monitor process performance continuously. Apply feedback loops to adapt and refine processes proactively.
The sixth step is Change Management and Training. Manage organizational change to foster adoption of new processes and tools. Train employees to utilize BPM systems effectively, aligning staff with process goals.
Lastly, Compliance and Risk Management is embedded within processes using BPM tools. Mitigate risks by ensuring processes adhere to banking standards and controls.
By following these steps, banks can leverage BPM to not only improve operational efficiency but also enhance customer satisfaction and maintain competitiveness in a dynamic financial market.
Modern, IT-based solutions are essential for identifying process improvements, but they cannot serve as the sole tool for sustainable results. Cultural embedding, including the clear definition of roles and responsibilities within the bank, especially for middle management, is crucial for sustainable process excellence.
The quote "You can't manage what you can't measure" is relevant for the banking sector. The importance of the information collected in Step 1 is not just completeness, but also the depth and relevance of the information, such as about throughput times, connections to other processes, volumes, or process costs.
Lack of methodological know-how, insufficient resource allocation, or inadequate collaboration between IT and business areas form barriers and prevent structural progress. A cross-technology approach demonstrates its full strength, with specialized automation tools optimizing individual subprocesses, while BPM systems provide the structural framework.
For a detailed analysis of current technologies and their potential applications in the banking sector, the "BPM Market Overview 2025: AI and BPM Tools in the Financial Industry" provides valuable insights.
Professional process management can transform from a reactive "order keeper" to a proactive driver, resolving the dilemma faced by middle management by creating transparency and data-driven insights. Process management can be much more than just a pure fulfillment instrument for regulatory requirements, leveraged as a strategic discipline and active driver for efficiency, control, and customer satisfaction.
The relevant steps in the structured approach using Business Process Management (BPM) tools for optimizing processes in the banking sector include using data from process execution in Step 2, Process Analysis, to assess cost, time, and quality metrics. This provides insights into areas that require improvement. Furthermore, enabling automation and streamlining activities with BPM tools in Step 3, Process Redesign and Optimization, improves speed and accuracy, which is crucial for surviving in the fast-paced financial market.
