BPM and Banks: The Four Major Benefits of Process Automation
With many types of organizations, process modeling is primarily about efficiency. With banks, however, dark processes—un-modeled, un-monitored processes—can lead to non-compliance, both with existing laws and with internal policies put in place to ensure safe lending practices. Either type of non-compliance can lead to legal exposure, dangerous loans, and lost profits.
Automating the loan-generation process can reduce—and probably eliminate—non-compliance. Relationship managers, loan officers, and clerical workers are all channeled into the same codified, automated process, the outcome being not only greater efficiency, but also greater safety.
Relying on human interaction in complex, difficult processes is risky, to say the least. A commercial lending agreement could be a hundred pages long, could have a thousand variables, could require really complex business logic to include/exclude language blocks, could involve multiple levels of repeating text, etc. With this level of complexity, no amount of proofreading is going to eliminate the possibility that something could get missed, and that something could leave the bank exposed to the tune of millions of dollars.
For a lending institution, transforming its transactional documents into a process application with accurate and complete business logic and a highly interactive, structured data-gathering sequence can virtually eliminate human error and, with it, a significant amount of legal exposure.