Process Mining in Banking

In today's dynamic business environment, Banking institutions and Financial Services face the challenges of managing increasingly digital processes while maintaining a clear overview of their most critical operations. Now more than ever, to ensure high efficiency, Banking institutions and Financial Service providers are required to deeply comprehend their businesses’ complex process landscape, detect vulnerabilities, and ensure adherence to internal controls, regulations, and compliance. In addition to the selection of a suitable Sourcing Strategy, IT-Decommissioning and Transformation Management, Process Mining plays an increasingly relevant role today.

By using Process Mining, businesses could gain comprehensive visibility and unlock untapped potential for improvement. In a nutshell, Process Mining is a technology used to leverage advanced data analytics methods to uncover, analyze, visualize, monitor, and optimize real-world processes by creating valuable insights from event logs generated by information systems. Process Mining holds the potential to enhance Banking and Financial Service providers efficiency by tapping into some of the most important areas of their processes. As a result, it strongly supports bridging the gap between current inefficiencies and desired performance.

How can Process Mining support Banking Institutions?

Process Mining can enhance various areas of banking, such as Know your Customer (KYC), Credit Application, Customer Service and Regulatory Reporting. By leveraging advanced algorithms and techniques, process mining enables banks to analyze their data and extract meaningful insights. These insights help to detect any bottlenecks, inefficiencies, and areas for improvement.

Moreover, Process Mining can significantly increase service level adherence within the KYC process and remove any root causes that lead to delayed customer checks. Process Mining tools enable banks to analyze where in the process unnecessary checks are conducted by monitoring all ongoing KYC files and notifying KYC analysts when service levels are predicted to be violated.

Techniques of Process Mining have also the ability to detect inefficiencies that lead to delays in the credit application processes. Some process inefficiencies could result in the need to adapt client applications, ultimately leading to unsatisfaction and loss of revenue. Process Mining tools facilitate banks to analyze the reasons behind inefficiencies, find undesired loops in the systems, and detect eventual delays.

Problem-incident mapping and grouping of multiple cases to a large-scale problem to reduce the overall case volume and resolution costs are also areas where Process Mining can be used for improvements. Respective tools can help to identify related cases and to direct them to the same group.

Process Mining instruments can also support in ensuring report’s submission punctuality and detect bottlenecks along the data lineage. Feed failures and late fillings of data elements often lead to delays as data need to be delivered from various front-end systems. Process Mining technology can support in efficient process visualization, identification of data delivery issues and improvement of on-time submissions.

How can Process Mining be implemented?

Process Mining as powerful technology within Banking encompasses different key activities, including data extraction and preprocessing, process discovery for constructing process models, conformity checking to compare actual execution against expectations, performance analysis to measure process metrics, and process enhancement based on data-driven insights. By applying process mining, banks can gain a comprehensive understanding of their actual operations and identify potentials for improvement.

The implementation of Process Mining involves four main stages. Firstly, an ad-hoc data identification and selection of processes is needed to get a comprehensive overview of all business procedures within the organization. Secondly, the Process Mining environment is created by extracting process data and transform them into event logs. Based on that, the following phase involves the configuration and implementation of a suitable data model to assess the correct and efficient integration of Process Mining to the specific case. In this phase, the data are processed and transferred to the Process Mining tool. The Process Mining implementation process is completed with the process optimization with focus on the validation of insights, optimization of measures, and definition of necessary actions to ensure alignment with business procedures.

Our Services and experiences in Process Mining at Deloitte

Our Deloitte Banking Team has comprehensive expertise in managing and coordinating Process Mining. Our Team offers a comprehensive product portfolio, including Sourcing Strategy in Banking, IT Infrastructure Business Case, Managing Transformation in Banking, Testing in Banking, and IT-Decommissioning in Banking. With our experiences and competencies, we can provide a holistic and tailored approach, from scoping and gap analysis to implementation planning and roll-out of Process Mining, which fully fits the client’s needs and requirements. Process Mining has an enormous significance for our Banking Team. We are dealing with this topic on daily basis and successfully impacting clients around the world.

Get in Touch with us!??

Nitin Malhotra ([email protected]) is driving IT Strategy & Transformation in Financial Services – Banking industry; and has more than 22 years of experience in the delivery of large, global & complex IT Transformation Programs.???

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