Two of the biggest concerns for Financial Services Institutions (FSI) as we roll into 2021 are customers and compliance. The dynamics of the customer relationship were forever altered due to the COVID-19 pandemic, and any incremental progress on digitization and customer centricity was thrust into fruition in less than a year. But when change happens at such an accelerated pace, it’s difficult for your business and workforce to keep up. That, then, becomes a compliance issue, and it goes well beyond just the customer interaction. Every ripple of change that impacts customers also orbits on-boarding, supply chain, regulatory, and even employee satisfaction.
So how do you cope? Read on to find out, or jump straight to our new ebook, Blast Off to a Transformational Future.
T-Minus 10-9-8…Start at the Launch Pad
To adjust to our new reality you need to first understand the reality of your business on the ground. You’re on the launch pad and you can see the promise of digital transformation looming large on the horizon. But, you need to optimize your underlying core processes as they continue to change. It’s a daunting challenge, but one that process intelligence can help you solve.
It begins with the customer lifecycle. How you find and onboard customers has fundamentally changed. From prospecting and acquisition to eventual transaction processing, customers are demanding more, faster, and broader services. Their expectations are also continuing to climb. Process automation can help you eliminate slow, tedious, error-prone manual tasks, but where do you start? Determining which processes are ready for automation requires learning how processes are actually completed.
FSIs have additional concerns around risk, internal controls, exposure to nefarious actors, and regulatory scrutiny, along with the need to meet rising customer expectations. There are also security implications to any process change, as well as the impact to workers, decision making, and more. Most firms are solving these challenges with digital transformations, even though McKinsey & Company found that just 14% of those efforts will return sustainable performance improvements.
Again, the only path to transformational success is by first understanding your current processes and how they are actually performed. You don’t fire up the rocket engines and then move to the launch pad, right?
7-6-5…Use Process Intelligence as the Fuel
FortressIQ combines computer vision, and deep learning models to automatically discover, map, model, and document the details behind every digital process executed across every application used by your workforce. By mapping processes across your entire firm and at all levels, you’re then empowered to identify operational risk and work on mitigation. Or, you can identify candidates for automation and move forward with confidence because you’ll uncover every deviation, best practice, and risky workaround before you automate.
Process intelligence fuels your transformation. It prepares you for the good work ahead, and quickly provides deep, accurate insights on every step of every business process.
A good example comes from a broker/dealer that was deploying a cloud strategy. The firm relied on disconnected legacy and homegrown technologies, and had a very inefficient organizational structure. That made process discovery a challenge. So they deployed FortressIQ Process Intelligence to decode as-is processes. Across 10+ million events and 120+ applications, they discovered 40-50% of critical events happened within Microsoft Excel, Outlook, and Teams, which launched their transformation efforts.
4-3-2-1…Uncover GRC Issues
Successful transformation requires continued focus well beyond liftoff. Mission control needs constant and accurate insights to keep the mission on track. Similarly, your transformation teams need to see the impact of processes and process changes across your business. That’s especially critical for FSIs and this industry’s unique compliance and control requirements.
Governance, risk, and compliance (GRC) challenges have ballooned as the pandemic pushed us into remote work situations. The implications are especially acute for FSIs (read our related blog post for more insights). FortressIQ lets you see into processes to combat financial crimes from both sides: you’ll see process gaps that might be attractive to criminals and you’ll help audit, compliance, and assurance teams better understand areas of risk.
In one example, an investment bank wanted to combat financial crime (AML) by enhancing their transaction monitoring process and data management. But, their highly manual processes and unstructured data forced 100+ analysts to spend 80% of their time in data collection, cleansing, and loading before any actual analysis could be conducted. FortressIQ Process Intelligence decoded their current state processes to provide detailed data on application usage and process variations. These insights allowed the firm to quickly improve the user experience and streamline interactions across various systems.
Beyond GRC, process intelligence also gives operations, lending, and other departments a better view into how your business actually works. That helps you make improvements while closing BSA/AML and KYC risk gaps at the same time. FortressIQ also generates accurate process definition documents (PDD) automatically, thus helping teams across your firm automate workflows, increase compliance, and improve business operations.
For FSIs, this translates into a win-win of less risk and more efficient operations.
Blast Off to Success
Today’s customers demand change, flexibility, and speed. But you can’t transform for tomorrow until you know how your business actually operates today. And, FSIs have the added responsibility of compliance and controls, regulatory oversight, governance, audit, and more. Every process can add to or reduce risk, and only accurate and comprehensive process intelligence shows you where that risk hides. It also provides the trajectory for eventual automation that further reduces risk and increases efficiencies.
The near real-time, data-driven insights provided by FortressIQ, along with the power and usability from our integration with Microsoft Power Platform, lets you transform your business today to keep up with the changing needs of tomorrow.
Read more about process intelligence for FSIs in our new ebook, Blast Off to a Transformational Future. It also contains a helpful checklist of 5 critical prerequisites for successful FSI transformation.