BPM in Asset Management: concepts, benefits and a concrete example.

We have seen a notorious fit of Flokzu and business process management technology ( BPM and Workflow ) in asset management companies. This acceptance occurs for the most obvious reason: the benefits are evident, quick to achieve and cost-effective.

Certainly, we have seen administrative processes of diverse nature implemented in clients from Panama, Colombia, Uruguay, Mauritius, and Chile, among other countries. These processes include investment management, regulatory compliance, risk management, and general back-office operations. In addition, portfolio management, customer service, IT incidents, development of new products and strategies, and customer relationship management are highlighted. The efficient integration of these processes with the company's central systems and different teams is crucial for success in the - increasingly - dynamic asset management sector.

This article will present a very simplified example of a process in this industry. We will identify the concepts that support the success of BPM technology in this type of company. And we will review the key elements to consider for a quick and smooth implementation project.

Administrative processes before a BPM Suite

Before the incorporation of BPM technology, back-office processes in asset management companies were often manual and relied heavily on communication via phone, email, and other traditional means.

Back-office employees communicated with clients or each other through phone calls, emails, or WhatsApp messages. Naturally, these mechanisms took time to set up, often involving long waits (on the phone online or waiting for a response). Additionally, information could be misinterpreted or lost during the conversation or due to typing errors. There was often no record of the interactions through these channels, making monitoring and accountability difficult.

In the case of emails, mailboxes tended to fill up, making it difficult to find relevant information. Responses by this means were not instantaneous and were often delayed. Additionally, since the emails did not follow a uniform structure, information usually needed to be included, and the process was difficult to standardize. And, of course, the enormous difficulty was that the mailboxes were personal. Hence, the information stored there was not available to other company members, and the risk of being lost was high when the person left the company.

Finally, the use of paper support is still valid in some organizations. Naturally, the paper process is slow and error-prone. In addition, physical documents could be lost or damaged. Finally, the storage of paper documents requires physical space, no small aspect, and no negligible cost.

Money Withdrawal Process

The "Cash Out" process in asset management is a very good example of how to apply the BPM discipline and a BPM Suite in an asset management company.

This process is essential to meeting investors' liquidity needs. It usually begins with a client's request to withdraw a specific amount of their invested money. The request is reviewed and evaluated, and additional information and validations may be required until the disbursement is made to the client (or rejected).

The main tasks of the process

1. Withdrawal Request: The client begins the process by completing a form in Flokzu to withdraw a specific amount of money from their investment. In the form, specify the desired amount, the destination account, etc.
2. Verification and Approval: The asset management team verifies the request and approves the withdrawal if it complies with the policies and regulations. Verifies the client's identity and evaluates whether the withdrawal complies with established limits (e.g., withdrawal minimum, tax restrictions). Obtain approval from the investment committee if necessary (depending on the amount). The BPM suite stores the audit trail (who approved, when, with what observations, etc.)
3. Settlement and Transfer: The transfer of funds from the investment account to the client's account is executed. It may involve selling the assets needed to cover the withdrawal, electronically transferring funds, etc.
4. Confirmation and Report Generation: Detailed withdrawal confirmation is provided to the client, generating a transaction report. Confirmation is automatically sent to the client (for example, via email attaching the report).

Relevant KPIs of the process

Like any process in a continuous improvement cycle, it is important to measure its performance using key performance indicators ( KPI's ) , identifying opportunities for improvement. Two important KPIs that should be defined for this process are:

• Withdrawal Processing Time: Measures the efficiency in the execution of the withdrawal. It is calculated as the time between the client requesting the withdrawal and the completed process by sending the client the confirmation and their report. This KPI can also be opened in each task to analyze which took the most time (then being the bottleneck).
• Unprocessed Withdrawal Rate: Measures the proportion of withdrawal requests that still need to be completed. The information is opened because they were not processed (the time limit was exceeded? The identity verification was not passed? The regulations were not complied with? etc.). Considering that an unprocessed withdrawal constitutes a bad experience for the customer who requested it and that it also incurs costs for its processing, this indicator becomes very relevant.

Benefits of automating this and other processes.

Automating the described process or others in an asset management company using a no-code BPM Suite such as Flokzu offers several significant advantages compared to traditional manual execution methods.

1. Fast time-to-market of the automated process: Flokzu, thanks to its no-code features, allows you to design precise and automated workflows in hours or days (instead of weeks or months). The form for the customer request is built without programming by "dragging and dropping" fields, and defining the necessary business rules.
2. Efficiency and Speed: Withdrawal requests are processed without delays. You should not wait for missing information (it is checked when completing the form) or documents or emails to arrive. Everything flows from one person's inbox to the next.
3. Error Reduction: Forms ensure you have all the necessary information, and predefined workflows ensure that tasks are performed in the correct order. Human errors derived from verbal or written communication that can lead to misunderstandings are minimized.
4. Transparent Tracking: Flokzu records every step of the process. The audit trail indicates who did what and when. Users can track the status of each request in real-time.
5. Normative compliance. Flokzu allows you to incorporate policies and regulations into the same workflow, ensuring they are always followed.
6. Scalability: Workflows are scalable. The same team of professionals can handle many more process instances (withdrawal requests in the example given).
7. Notifications and Alerts: Flokzu sends automatic notifications to interested parties (whether employees or the client themselves) when certain milestones are reached (for example, when the transfer to the client is completed.

In short, Flokzu simplifies and optimizes the withdrawal process by providing an agile, accurate, and transparent solution for clients and asset management teams.

Conclusion.

The implementation of no-code BPM technology in the Asset Management industry has significantly impacted operational efficiency and associated costs. Rapid implementation of custom processes has been achieved by allowing internal (non-IT) business users to design and automate workflows without requiring intensive programming. Adopting No-Code solutions based on the SaaS model has proven financially advantageous, reducing initial expenses by eliminating investments in infrastructure and licenses while providing the scalability necessary to operate in various markets efficiently.

This technological approach optimizes the costs associated with administrative processes for asset management and offers continuous adaptability. The ability to adjust workflows agilely in the face of changes in regulations or market dynamics gives companies a strategic advantage in a highly dynamic financial environment. In summary, Flokzu technology in asset management presents itself as a smart financial investment that provides efficiency, global scalability, and continuous adaptability.