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After having explored how Process Intelligence complements conventional business intelligence and reveals process behavior, I will now look into its benefits and application areas.

Essentially, banks deploy Process Intelligence for three reasons:

  • To increase customer satisfaction, quality, and margins
  • To lower the cost of compliance activities and improve the reliability of such activities
  • To reduce and prevent risk

From this, we can conclude that Process Intelligence is an extension of three divergent but related disciplines, namely performance management, compliance management, and risk management. This means that several parties benefit from the application of this technology: the Chief Operating Officer (COO), who is responsible for operational results and the quality of processes; the Chief Financial Officer (CFO), who is responsible for financial results and rendering account to interested parties and shareholders; and the Chief Risk Officer (CRO), who, as the deal breaker, is the conscience of the bank and responsible for saying no at the right moment and protecting the bank from risk. Finally, there is a large group of professionals whose work is made easier from a financial, economic, and risk standpoint: controllers, accountants, auditors, risk managers, compliance officers, process managers, quality managers, and business analysts. The broad base of support for Process Intelligence and its far-reaching impact on the organization guarantee synergy benefits, regardless of other outcomes from its use.

There are numerous ways in which Process Intelligence can be used by banks to generate real added value. Here are two key application areas:

Governance, risk & compliance

Reconstructing an actual process from end to end provides an ideal source of information for anticipating what will follow. Open positions, deviant transactions, and processes that fail to run as agreed are immediately identified. This reconstruction also ties in well with the requirements for demonstrable compliance contained in such legislation and regulations as Sarbanes-Oxley, Basel II, and WFT, as well as being useful when implementing corporate governance. It makes it easier for banks to present the monitored process behavior to an auditor, in order to demonstrate proper process management and implementation of the necessary control measures. The visualizations provide immediate answers to questions, such as: Who did what and when, is there proper separation of duties, are people keeping to agreements, and are procedures being followed? Visualization of the actual process path may serve as a reference to evidence. A further benefit is that Process Intelligence is not limited to monitoring of operational processes. A bank can also deploy it to examine the compliance process itself: Are we in control, do we carry out our random surveys properly and on time, are we on schedule, who performed which audits and when?

Straight through processing

The aim of straight through processing (STP) is an uninterrupted process flow to improve the speed of transaction handling and reduce complexity (especially for large volumes). STP contributes to shorter throughput times, reduced risk, greater certainty, and lower operational costs. Manual interventions lead to reduced efficiency and greater risk. Process Intelligence tells you which situations actually needed manual intervention. For banks that outsource some of their processes to third parties, Process Intelligence is an excellent tool for testing compliance with agreed standards.

If you want to learn more about Process Intelligence, please have a look in the ARIS Expert Paper Library. You will find a range of contributions, including the expert paper 'Process Intelligence puts the banks back in charge'.

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