Banks still have a way to go to come on top in the race to become digital

Published On : 06/09/2018

Mark Holenstein, COO at Signavio, talks about how the right process management tools can help banks become more agile and focus on customer satisfaction.

As banks revealed their Q1 earnings recently, the market saw a general upward trend, resulting in a sense of positivity within the sector.

Amongst other positive results, RBS reported a profit for the first time in 10 years, and Barclay’s shares rose by 5 percent following the announcement of plans to double dividend.

Whilst, things seem to be looking up for banks, they are now faced with more challenges than ever as they fight to retain their market share. Not only do they have to comply with the changing regulations, they also have to navigate the constantly evolving digital landscape and ensure seamless customer experience.

Whilst juggling between keeping track of daily processes and managing all aspects of internal monitoring, banks are now also having to deal with compliance, and are channelling resources towards innovation-whilst simultaneously trying to reducewaste and remain competitive.

When approaching regulations, the question goes beyond ensuring compliance to being able to prove that you are compliant to the regulator. Confirming the whole process is clearly documented removes the margin for error, significantly reducing the likelihood of non-compliant behaviour, and makes certain that the decision-making process is tracked and approvals are recorded appropriately. Highlighting all of the risks and the controls and ensuring that these processes are embedded in the system comes down to a systematic approach, taking it one step at a time and the noptimising processes along the way.

In general, despite the fact that businesses with highly engaged employees see a 10% increase in customer ratings, only 13% of employees worldwide feel they are engaged within their respective organisations[1]. Making process management more people-centric providesbanks with a seamless view of all internal on-goings, whilst increasing engagement with their employees. The key is to empower employees to take ownership in finding the best way to get things done, as they are central to the system they are in. They will be able to map out the way things are currently done and whether changes need to be made to ensure both operational excellence & compliance.

This also enables businesses to remain customer-focused, whilst achieving optimised results and more effective management of their day-to-day operations. It also allows banks to combine traditional process management techniques with mapped-out customer journeys, and implement changes that would have maximum impact on the customer experience.

By taking full advantage of a holistic, process-driven approach, banks can often generate an improvement of more than 50 percent in productivity and customer service, according to a report by Mckinsey and Co.[2]

To keep up with the ever evolving landscape of the sector and stay competitive, banks must ensure they are adopting the right approach to their process management. This involves taking a systematic approach to regulations, ensuing clear documentation and a thorough understanding throughout the organisation. More importantly, the approach has to be people-centric. Placing employees at the centre of the system and mapping processes based on their feedback will ensure better engagement and collaboration to empower employees to get involved in steering the direction of the company.

[1]https://www.officevibe.com/blog/disturbing-employee-engagement-infographic

[2]https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/automating-the-banks-back-office

Wanda Rich

Wanda Rich has been the Editor-in-Chief of Global Banking & Finance Review since 2011, playing a pivotal role in shaping the publication’s content and direction. Under her leadership, the magazine has expanded its global reach and established itself as a trusted source of information and analysis across various financial sectors. She is known for conducting exclusive interviews with industry leaders and oversees the Global Banking & Finance Awards, which recognize innovation and leadership in finance. In addition to Global Banking & Finance Review, Wanda also serves as editor for numerous other platforms, including Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.