Client On-boarding: Leveraging BPM to Achieve Business Transformation

Successful organizations are not known for being complacent. They strive to improve themselves continuously. But that raises an issue; how does an organization identify weaknesses in their compliance, delivery and customer focus? In Frank Palermo’s recent blog Making Sense of Your Big Data with BPM: Turning Insights into Action, he discusses the convergence of Master Data Management (MDM) and Business Process Management (BPM), and how the two can be leveraged to tackle the challenges of Big Data to achieve business transformation. Frank points out that BPM can be used to derive intelligence from the collected data and, once the issues around data processing have been solved, can also perform a governance role.

These concepts are directly related to client on-boarding as large amounts of data are required to complete a client profile. Financial institutions need to leverage client data and their client’s behavior and needs for various purposes. Effective compliance programs such as Anti-Money Laundering (AML) require the monitoring of client activities and the ability to spot unusual account behaviors that might signal illicit activity. The ability to process the data necessary to make better decisions, raise flags earlier and avoid potential liabilities requires most effective implementation of these concepts.

As I had mentioned in an earlier blog post, business transformation is achieved when an organization implements a system or process that changes the way it conducts its business. Enhancing the ability of client on-boarding programs to provide transformational opportunities to improve cross-selling while also speeding up the time required to complete the process is another example of business transformation. Using BPM in the way that Frank describes allows organizations to leverage the benefits from the data that is collected in different ways and from disparate processes.

During a recent webinar, we illustrated how BPM can be leveraged to not only govern data, but also to guide the on-boarding team through business rules (framed from best practices) from both an operational and regulatory compliance perspective. We analyzed this issue from the perspective of Dodd-Frank compliance though the tenets are applicable to many business scenarios. By adding this simplistic scenario to Frank’s perspective, financial organizations can achieve transformation that accommodates a more sophisticated view of their customers. This can be leveraged for compliance programs such as AML. Also, organizations can use these data points to arrive at the 360 degree view to better capture essential insights required to improve customer focus and deliver the products and services customers desire in ways that increase their satisfaction.

What is needed is for the organization to identify the weak links in its delivery and customer focus, determine the causes and leverage the resources or data required to reduce or eliminate those weaknesses. This type of transformational approach can only be achieved through the combination of technology, such as BPM, and thoughtful analysis of the customer or compliance needs that are not being satisfied.