Business Process Management for Financial Institutions

April 6, 2012 by  Filed under: Credit 

Business process management (BPM) is a system set in place to organize and manage various tasks and workflows. One specific way that it is used is to manage origination and maintenance processes for financial institutions (FIs). It allows manual and automated processes to work together while allowing end users to monitor the process as it is happening, leading to more robust decisioning processes and improvements in business logic. Overall, it is used to make origination processes for FIs as efficient and effective as possible and to ‘get everyone on the same page’.

Business process management is the combined effort of people and technological resources working together in order to streamline the origination process. This combination of efforts is beneficial for financial institutions because each step of the process is delegated to whichever body can accomplish the task most efficiently. Origination processing uses two kinds of decision making-automated and manual. BPM software is used to toggle between the two kinds of processes effectively, without the loss of data, without redundancy in decisioning, and most importantly, each kind of decision maker is only performing the tasks and steps for which they are most skilled. Automated decisioning is used to perform calculations, pull credit worthiness information from data sources and is check the applicant against the attributes for credit worthiness qualifications. Manual reviews are used to resolve stipulations that occur when an automated process lacks sufficient capabilities.

BPM software is advantageous in switching between automated and manual decisioning because all data collection and processing is streamlined, while applications can still being examined individually when needed. This makes the financial processes as efficient as possible while addressing the needs of individual consumers.

Business process management software is also useful for monitoring origination processes. Because all steps from receiving an application to sending back a decision are connected, banks can effectively pinpoint inefficiencies in their process. They are able to determine which parts of the process are redundant, unnecessary, or even, which parts cause errors. This level of transaparency within the system gives financial institutions the ability to better evaluate their logic and make improvements to their logic that will ultimately improve the whole origination process.

Business process management provides effective origination processes for financial institutions. As already stated, it streamlines decision making, gives banks the ability to take advantage of both manual and automated decisioning, and allows banks to monitor and update their logic.

Kelty Wallace is a SEO specialist and copywriter at Zoot Enterprises in Bozeman, Montana.

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