eBook Series: Financial Services

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eBook Series: Financial Services

In the highly competitive Financial Services market, it is essential to focus energy both on customer retention and on acquiring new business. But in a market characterized by product parity, it is service which sets one financial institution ahead of its competitors, in the minds of both new and existing clients. When choosing between financial institutions, the deciding factor for clients is not the intrinsic product benefits alone, but the efficiency and speed with which applications are dealt and the efficacy with which staff are able to act.

Other titles in the BPM and Workflow eBook Series...
* Introduction to BPM and Workflow (Size: 130 pages, 3MB)
* Financial Services (Size: 265 pages, 10 MB zipped file.)
* Healthcare (size 185 pages, 8MB zipped file)
* Utilities and Telecommunications (152 pages, 5MB)

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Size: 265 pages, 10 MB zipped file.

Financial Services

This new eBook presents the collection of best and most important chapters on this topic recently published in the annual BPM and Workflow Handbook series and our other publications. BPM’s promises are real, but the path to success is littered with pitfalls and shortcuts to failure. Best practices can help you avoid them. If you are just embarking on using its methods and tools, these authors have a wealth of experience to learn from and build on. Whether you are a business manager or an Information Technology practitioner, this special collection of papers will provide valuable information about what BPM can do for you—and how to apply it.

Section 1 - Worldwide

Bank of Tokyo, Mitsubishi, UK 

Bank of Tokyo Mitsubishi’s London-based operational hub, the European Operations Centre (EOC) deployed the Singularity Process Platform as part of a broad leadership initiative to improve business process performance across the Bank’s extensive European Office Network. Choosing the London and Paris Loan Ticketing processes for the initial implementation, the Bank now has greater Loan Ticketing capacity while operating on a lower cost base. The Bank’s representatives are equipped to make better decisions and to provide customers with more efficient and higher quality service. Increased levels of automation have reduced the opportunity for re-keying error and have improved data quality, lowered the incidence of ticketing issues and trimmed processing costs per ticket.

Barclays, France        

This is not the first workflow application at Barclays France. Since 2004, the bank has been reshaping its loan allocation application for its entire sales network, as well as for its back-office staff. Today, this application, called “loan workflow”, manages loan requests, from the opening of the file at the branch to the issue of the offer, and includes automatic routing between the various players in charge of decision-making. The computerisation of the file management process has helped to eliminate paperwork and also offers customer-relationship managers better traceability of operations. Every request may be identified at each step in the process and authorised users may access files and keep customers informed of the progress of their request. Furthermore, it offers management a clear and homogenous view of the operations carried out. Finally, automation helps to maintain a history of all the steps in the procedure, including the reasons for loan refusal. It is on the strength of this solution that Barclays France decided to extend the workflow process to exchange flows and steps in the account life.

Credit Suisse Financial Services, Switzerland          

Credit Suisse, one of two business units of Credit Suisse Group, has become a global leader in private banking. In 2001, Credit Suisse’s pre-tax margins were 51 percent and net profit per employee was $175,500. While in a typical year it generates just 20 percent of total annual Group revenues, historically it has provided close to 40 percent of the profits. However, high margins invite competition, and Credit Suisse knew that other financial institutions were ready to accept the invitation. The company engaged System Integration Center AG to createServiceNet. It is only due to ServiceNet that Credit Suisse is able to set the standard of service for its industry, grow its volumes and expand its client base without either eroding its margins or cutting back on service. It will be very difficult indeed for most of its competitors to achieve these same results.

Fullerton India Credit Company Limited, India            

Being a recent entrant in the retail-lending segment, Fullerton India Credit Company Limited (FICCL) plans for rapid rollout of branch network to reach a large customer base. The company’s objective was to achieve lean but profit-oriented branches, reduce the turn-around-times, lower the operational costs and improve the customer experience. Newgen offered FICCL a BPM solution based on Newgen® OmniFlowTM, which integrates with the core system, Flexcube. The solution covers the entire spectrum of loan process starting from loan initiation, de-dupe, credit verifications, deviation handling and approvals, loan booking by the back-office, and finally the loan disbursal process.

Groupama, France      

Groupama traces its origins to 1840 and has grown from its roots in the French agricultural community to become one of the world's leading mutual property and casualty insurers as well as one of Europe's largest financial services groups. Groupama Centre Sud refocused IT around business issues and has built a new strategic orientation: quality to serve performance. The client is the focus for the New Market Model which means to approach clients efficiently (at the right time) and effectively (through the right channels) at each stage of the business process.

infoCaja, MiFID Client Services          

In view of the challenge to comply with MiFID – Market in Financial Instruments Directive – requirements by November 2007, infoCaja began the process to select a BPM technology so that its affiliate banks could adapt as soon as possible to the regulations. They wanted an agile and efficient business solution which would also support evolution of the guidelines in the long term. The processes automated with BizAgi at infoCaja, a company that provides shared services for its five affiliate banks (Cajastur, Caja Canarias, Caja Castilla la Mancha, Caja Murcia, y Caixa de Balears), supports the MiFID client order handling process trough a multi-bank, individually a ministered environment (e.g., each bank can define and modify the tests and their validity). Thus infoCaja, supported by Pricewaterhouse Coopers and the agility of BizAgi, was able to implement the automation of this process in less than 4 months, and went live by the specified date of 1st November 2007, managing more than 5,000 users in more than 1.500 branches.

Korea First Bank, Korea        

With the introduction of a workflow system, the Korea First Bank has succeeded in the swift centralization of scattered loan processing systems and the integration of various legacy systems in the organization. We are also confident that we have built a flexible, future-oriented system that can quickly adapt to and handle changes and expansion of our business in the future. This success in improving our loan-processing procedures has resulted internally in maximizing business competitiveness by enabling the sales force to focus on their primary duties rather than on the technical and administrative problems of loan processing, and externally in maximizing customer satisfaction by considerably improving process cycle time.

Max Life New York, India          

The company operates in a fiercely competitive and rapidly growing Life Insurance industry in India. The advent of several private insurance players—most of them collaborations involving international Insurance giants—has broken the monopoly of the monolithic state insurance agency—Life Insurance Corporation of India. With most of the new players in the Insurance market offering more or less the similar type of basic products, key differentiations can be achieved through automation of processes that enhance customer service. As a result, Max New York Life (MNYL) became one of the earliest insurance players in India to adopt Business Process Management (BPM). The phased implementation of BPM solution has enabled the company to rapidly expand its customer base, continuously enhance product offering, and stay well on course of realizing its vision of being the most admired life insurance company in India.

Migros, Switzerland   

Migros Bank is one of the 10 leading financial institutes in Switzerland and one of the biggest Retail-Banks. Our focus is to be very close to the clients and therefore we have around 50 branches all over Switzerland and many more small contactpoints that offer basic services for new clients. All in all about 1,400 employees work for Migros Bank. When we outsourced almost all of our IT to an external provider, little or no electronic workflows were in use. In addition, we were confronted with increasing regulatory and risk issues concerning the internal order processing from the regions to the centralized back-offices that were done by placing orders by paper forms and by fax. To improve these situations we initiated a project to implement electronic people-to-people workflows.

MONDERO, Argentina 

MONEDERO is a leader in means of payment in the segment of micro payments in the Republic of Argentina. Conceived 100% under the logic of processes management, it presently allows the user to pay, with a single prepaid recharge Contact Less card, his/her everyday spending in the public and private transport network, retail chains and shopping malls throughout the country.

Nedbank Retail Banking Credit Control Department, South Africa  

A market leader in many areas, Nedbank understands that in a highly competitive market, it is essential to focus energy both on customer retention and on acquiring new business. But in a market characterised by product parity, it is service which sets one Bank ahead of its competitors, in the minds of both new and existing clients. When choosing between financial institutions, the deciding factor for clients is not the intrinsic product benefits alone, but the efficiency with which applications are dealt, the speed with which they are granted finance and the efficacy with which staff are able to act. In short, the Bank’s ability to manage the credit process is paramount to its success, meaning that in addition to presenting clients with an outstanding range of products and services, it’s imperative that those products and services be accessible in the most convenient and in the quickest way possible, if prospective clients are to be converted to actual clients. Motivated by the principles explained above, Nedbank Retail Banking Credit Assessment department - which grants credit to both personal clients and small business - implemented an innovative BPM solution (TIBCO Staffware Process Suite – TIBCO SPS), in conjunction with consultants from Idea Junction, to help it attain its goal of processing credit applications more effectively, thereby increasing business for the bank.

Payment Centric, Jordan        

The purpose of this document is to layout the overall success elements of implementing the Merchant Management Application at PaymentCentric (PC) located in Amman, Jordan. This case details the challenges overcome, the competitive advantages the project has added to PC as the end user organization and the vendor’s experience. Future plans to upgrade the project are numerous since PC are in continuous expansion throughout the region and beyond; changes depending on the business needs for each different region will be incorporated. Adding to that the increased fierce competition within the market forces PC to excel in and optimize its services.

Produbanco, Ecuador 

Produbanco is one of the main financial institutions in Ecuador. In their search for a solution for the administration of credit applications they were looking for a simple system that was agile and able to integrate with their Core Banking systems as well as all areas involved throughout their organzation. They decided upon BizAgi’s BPM (Business Process Management) technology to automate the process of managing their consumer credit applications (personal, vehicle and credit cards) and mortgages. Today, the system manages more than 4500 cases per month, all by means of a web portal that is programmed to disburse the loans at a national level in the shortest possible time. The levels of security and control are sufficient to ensure a healthy loan portfolio in accordance with the bank’s guidelines. In terms of transactions, 80% are processed automatically and 20% are processed by risk analysts and a centralized, multi-product credit factory.

Professional Provident Society Insurance Co, Ltd., South Africa   

The Professional Provident Society of South Africa (PPS) was established in 1941 to provide sickness and disability benefits to graduate professionals in times of need. Membership is restricted to professional persons who satisfy the company’s eligibility criteria. Since 1941, PPS has grown to provide for the needs of over 70 percent of South Africa's graduate professionals. In 2001, PPS was transformed and PPS Insurance was registered to provide sickness and disability benefits as a long-term insurance company. To become, and remain, competitive in this environment meant that PPS Insurance had to optimize its current line-of-business (LOB) systems. The company had to increase productivity, providing cover for its policyholders in the shortest possible time. Introducing workflow automation not only resulted in improving, streamlining and accelerating the flow of information at a reduced cost, but also in re-motivating employees, who now provide better results more quickly.

PruHealth, South Africa        

PruHealth is a leading health insurance company which rewards members for adopting a healthy lifestyle. Launched in October 2004, PruHealth is a joint venture between Prudential and Discovery, the South African health insurance leader. Its model is based on a successful concept launched in South Africa. Prudential is a leading financial services company founded in 1848 with over 21 million customers and 28,000 employees worldwide.

Shanghai Commercial and Savings Bank, Taiwan          

In the case study, we present how Shanghai Commercial and Savings Bank
(SCSB) operates as the workflow application services provider (workflow ASP) via SCSB’s e-Bank portal. Using workflow applications not only in the back-office, SCSB pushes the workflow technology to the customer-side by providing VIP enterprise customers with financial transaction approval workflow services through the e-Bank portal, in which it allows enterprises to define and manage their own workflows and business rules for e-Bank transactions. By initiating the project implementation, SCSB aims to establish better environment and mechanism to enhance both security and services of e-Bank by integrating workflow approval processes with the financial transactions to prevent un-authorized e-Bank transaction that violates the business rules of customer’s enterprise. SCSB benefits from the workflow-integrated e-Bank services to satisfy more VIP enterprise customers by making them happy with their e-Bank transactions more auditable and compliant to enterprise rules. SCSB was awarded the International Global Award for the most highly-rated submission worldwide.

SNS Bank: Financial Crisis Front Line, Netherlands  

SNS Bank (the Netherlands) has made a strategic decision to empower her customers on-line by fully automating her business processes. The ability to automate these service channels is achieved by applying Business Process Management (BPM) techniques to existing selling channels. Both the publicly available Processing (STP) services. This extreme use of online STP is the trigger in a shift that is of crucial importance to cost effective banking in an ever turbulent and changing financial world. The key elements used in implementing these goals continue to be Free Open Source Software (FOSS), Service oriented architecture (SOA), and BPM. In this paper we will present an industrial application describing the efforts of the SNS Bank to make the change from traditional banking services to a full scale STP and BPM driven bank that can survive on the Financial Crisis front lines.

Using BPM to Manage Risk in Financial Services Firms           

 By Sheila Donohue, CRIF Decision Solutions, Italy
Risk management, which used to be an activity concentrated in just certain departments of financial services companies, is now a widespread, integrated part of the operations of the entire firm. This is because the introduction of risk occurs during the day-to-day transactions among employees, customers and third parties and the lesson learned is to control each point at which the risk is most prevalent. The consequences of uncontrolled risk can result in large monetary losses, negative impact on share price, loss of jobs, closure of companies and even court prosecution, as seen in current events especially over the past five years. Spurring on the use of modern risk management techniques are regulatory bodies, and even investors, that now require companies to demonstrate solid risk management practices. This paper will focus on two types of risks which financial firms manage and how Business Process Management, BPM, can be applied to manage these risks.

Section 2 – USA

Dickinson Financial Corp., USA           

Motivated by competitive pressure to improve its customer service, standardize its forms and increase potential future growth, Dickinson Financial Corporation (DFC) had the opportunity to implement new solutions that would ultimately reduce internal costs, improve scalability and customer services, generate ROI, ensure compliance with bank processes and attain better risk management. DFC chose to put into action automated document processes based on Adobe technologies in an effort to achieve its business goals of increased customer satisfaction and a “paperless bank.”

Lincoln Trust Company           

This paper describes the experiences of implementing an enterprise wide
BPM program at Lincoln Trust Company. The program was constituted in early 2007 with an initial goal of managing core processes related to physical paperwork and an ultimate goal of using BPM technology to manage all strategic processes of the organization. When the program began the company was receiving over 100,000 client documents each month with limited to no control over these instructions. Initial, overwhelming success with an enter prise wide implementation of BPM technology to workflow-enable document-centric processes led to the strong desire of company management to move quickly to our next goals of understanding, improving, and automating other
strategic processes. By doing so we’ve been able to open our back office process for collaboration with a strategic outsourcing partner, drive processes to the web, reduce costs and risks, improve customer satisfaction, and completely turn around a damaged relationship between IT and the business.

Pershing’s Document Rendezvous, USA        

Pershing is a leading global provider of clearing and financial services outsourcing solutions to more than 1,100 retail and institutional financial organizations. These customers represent nearly every segment of the financial industry and execute a wide range of transactions through Pershing on behalf of nearly six million individual investors. At the core of Pershing’s strategic objectives is the drive to reengineer business processes for improved customer and firm productivity. In keeping with this corporate objective, the opportunity to improve the firm’s manually intensive—and expensive—document process required a complete overhaul. Processes that referenced the same documents were found throughout the organization and it was discovered that each business unit used the documents in different ways. The legacy, vertical, and department-centric processes revealed a significant business problem.

Zenith National Insurance Corporation         

This case study explores how Zenith National Insurance Corporation implemented a workflow and rules engine with the full support of the Fujitsu Software Corporation's support team. Fujitsu's Interstage Business Process Manager (i-Flow) is a business process management solution designed to improve the productivity and profitability of Fortune 2000 companies by maximizing the value of their existing IT infrastructures in dynamic markets. Zenith’s implementation of Fujitsu’s Interstage Business Process Manager demonstrates excellence in innovation, implementation and overall impact within the insurance industry.