4 Ways Business Solutions Can Transform Big Banks

Despite the finance sector’s rapid rate of change, the cost of non-compliance is colossal, and there’s no question that financial institutions need to change their relationship with compliance

The banking and financial sector is one of the most heavily-regulated industries in the world, and so it should be – after all, money is the backbone of our economy.

In the wake of digitisation, the way financial institutions operate – and the way they are governed – are changing almost as quickly as technology is advancing, alongside constantly-evolving compliance laws and regulations that financial institutions are required to keep up with.

Despite the sector’s rapid rate of change, the cost of non-compliance is colossal, as we are seeing with the recent anti-money laundering and counter-terrorism breaches impacting banks.

There’s no question that financial institutions need to change their relationship with compliance – investing in infrastructure to comply with extensive policies and regulations such as Anti-Money Laundering, and Know Your Customer rules, is the safest way to ensure business processes are compliant. Specifically, investing in business process management solutions (BPM) and process mining.

BPM is the methodology used to make workflows more efficient and capable of adapting to change, while ‘process mining’ penetrates the right data in specific workflows to reveal the root cause of inefficiencies.

In a banking sense – process mining excels in identifying non-compliant behaviour within an organisation’s process landscape through comparing the way a process actually runs to the way internal policies and external regulators say that process should run, detecting compliance violations which are then acted upon swiftly.

That’s not the only benefit however. Here are four ways BPM can transform banks and financial institutions, for the better:

Keeping Up With Competition

Innovation in the banking and finance sector is largely driven by technological advances. Big banks are struggling to keep pace with the rise of agile fintechs and neobanks – especially with open banking laws set to come into effect early next year, allowing consumers greater control over their banking data and how it’s shared with other institutions.

Read more: https://www.entrepreneur.com/article/344344