BCG White Paper - Banking (Ops) Excellence

“How AI-driven Process Intelligence can transform banking operations”

Financial institutions are increasingly realising that sustainable growth and competitive advantage are achievable by leveraging technology to transform their operations. This article examines insights from a recent white paper by the Boston Consulting Group (BCG) and Celonis, integrating these findings with our observations in the financial services sector. It underscores the significant role of AI-driven process intelligence in revolutionising the operations of financial services.

This article represents the opinions of Fluency as an industry participant and provides commentary on the report titled "BCG Banking (Ops) Excellence: How AI-driven Process Intelligence can transform banking operations”.

The importance of processes and documentation

The crux of competitive longevity in financial services lies in the effective management of routine operational processes. These processes, often complex and multifaceted, have historically presented challenges in optimisation and comprehension.

A discrepancy typically exists between how processes are designed, how they are perceived to function, and their actual performance, leading to operational inefficiencies, customer dissatisfaction, and regulatory compliance risks.

For Financial Services Institutions (FSIs), process documentation is crucial. It provides a clear roadmap of operational procedures, facilitating efficiency, compliance, and continuous improvement. Moreover, thorough documentation is essential for regulatory compliance and risk management, serving as a foundational element for both strategic and regulatory aspects of FSI operations.

However, the manual generation of process documentation is laborious and time-consuming, which can lead to crucial knowledge being confined to individual employees. This becomes a risk when staff turnover occurs or during organisational restructuring, potentially resulting in a loss of critical operational knowledge and creating vulnerabilities.

The manual approach to documentation can lead to procrastination or neglect, leaving significant gaps in organisational knowledge and process transparency. Consequently, organisations face a dilemma: incur the high costs of manual documentation or contend with the risks of having incomplete or outdated process records. This situation highlights the need for more efficient, automated process documentation methods.

Automating Process Documentation with AI

Adopting AI-driven process documentation can capture and update vital process information consistently, reducing the risk of information loss and facilitating swift and informed decision-making throughout the organisation.

Automated process documentation solutions like Fluency offer time-efficient, accurate, and consistent documentation of operational processes. With no need for technical expertise, these solutions enable widespread organisational adoption, ensuring compliance and enhancing decision-making capabilities.

This transition not only preserves institutional knowledge but also enhances operational efficiency, marking a strategic investment in the future resilience and excellence of the organisation's operations.

AI-powered process documentation grants a holistic view of operational activities, allowing for a comprehensive examination of how different processes interact and affect each other. Utilising AI helps organisations systematically address inefficiencies, streamlining workflows, and enhancing strategic decision-making. This approach not only optimises current process flows but also positions organisations to proactively manage change and drive innovation, maintaining compliance.

Key datapoints gathered by BCG + Celonis include:

• Enhancing process efficiency by up to 50%.

• Increasing customer satisfaction by 10–15 points.

• Boosting employee satisfaction, particularly in repetitive and operational tasks.

• Ensuring timely regulatory reporting, thus minimising the risk of penalties.

Understand your processes

Understanding the full spectrum of your processes, facilitated by AI Process Automation, offers a comprehensive approach to process excellence. Moving beyond a process-by-process analysis, this integrated methodology unveils the interconnections across the entire operational landscape, providing invaluable insights into process optimisation.

Source: Boston Consulting Group + Celonis, White Paper - Banking (Ops) Excellence “How AI-driven Process Intelligence can transform banking operations”

By adopting a holistic approach through AI Process Intelligence, organisations can achieve a comprehensive understanding of their processes, unveiling the interconnected nature of their operational ecosystem and fostering an environment conducive to continuous improvement and innovation in the financial services sector.

Read the full Report

This discussion draws upon the insights and findings from the white paper authored by the Boston Consulting Group (BCG) and Celonis. While our summary captures key points, the original document provides a more detailed exploration of AI-driven process intelligence in the financial sector.

For those interested in the comprehensive analysis and extended case studies, the white paper can serve as an additional resource.

https://media-publications.bcg.com/BCG-Banking-(Ops)-Excellence-AI-driven-Process-Intelligence-to-transform-processes.pdf?utm_campaign=organic_social-General+%28No+Campaign%29&utm_content=organic_social-LinkedIn&utm_medium=social_organic&utm_source=LinkedIn

The views and interpretations expressed herein are solely those of Fluency and do not represent the opinions or positions of BCG or Celonis. This article was developed independently and is not a product of collaboration with BCG or Celonis.