Business Process Modelling and Advance Data Management

Object Required

How banking sector framework function.

Principle

Implementation of Bonita BPM software in the Banking Industry

Theory

Case 1: Loan Origination

Loan origination includes a series of steps from the time a customer shows interest in a loan product all the way to disbursing funds (or declining the application). The basic steps in this process are as follows:

1.    Define customer needs

2.    Analyse loan options

3.    Calculate rates and payments

4.    Verify customer identity

5.    Review risk profiles

6.    Accept application data

7.    Conduct customer credit verification

8.    Initiate legal review process

9.    Coordinate appraisals

10.  Write title insurance policies

11.  Monitor customer registration

12.  Generate Loan disclosures

13.  Interact with escrow officers

14.  Fund loans

15.  Hand off to loan servicers

Case 2: Credit Card Dispute Resolution

Another financial services scenario involves resolving credit card disputes. The typical process is as follows:

1.    Cardholder reports an unauthorized transaction on his or her statement

2.    A customer service rep logs the incident as a particular type of dispute

3.    A customer service rep creates a new dispute case

4.    Customer service rep requests s signed affidavit from the cardholder

5.    Dispute analyst requests a sales draft from the merchant

6.    Cardholder signature matching

7.    Issue a chargeback

8.    Close case with all associated details (reason code, explanation, cardholder’s affidavit, etc.)

Case 3: Payment Processing

Payment processing is a central activity for financial institutions, especially retail banks and intermediaries that provided clearing and settlement services.

When a company’s treasury department interacts with the bank, there are several activities that require oversight:

1.    Retrieving beginning of day totals

2.    Monitoring cash accounts

3.    Sending or receiving cash between accounts

4.    Making supply chain payments

5.    Initiating payments settlements

6.    Calculating settlement positions

7.    Retrieving end of day totals

8.    Assessing the financial impact of the cumulative transactions

From Banks’ perspective, common activities include:

1.    Managing various formats of data arriving from customers

2.    Processing beginning of day and end of day reporting requests

3.    Meeting compliance requirements

4.    Processing payments

5.    Transmitting payment status updates

Case 4: Risk and Compliance

Competitive advantage stems from being able to efficiently comply with the regulatory mandates, wither it is KYC, BASEL II, MiFiD and other mandates. It’s not easy to keep up. These regulations are dynamic in nature. Risk officers need to respond quickly, or their companies can face fire consequences, from punitive fines to jail time for executives.

Unfortunately, process inconsistencies across lines-of-business, customer channels and product/service offering make it difficult for the risk officers to enforce standardized methodologies. BPM reduces the risk and costs associated with compliance by aligning finance, line-of-business, and operational processes.

Conclusion

Core Banking Transformation Provide an integrated infrastructure for managing all your business functions and mission-critical data across the enterprise. Customer Care and Insight Increase customer confidence and drive revenue growth from greater insight into customer needs. Integrated Risk Management Take a holistic approach to managing risk across the enterprise to improve financial performance. Payments and Securities Enable flexible, efficient and secure payments and securities operations while reducing costs.

Published Date

04 Jan, 2019