29 May 2018

Digital transformation in banking: how to modify your processes and retain the customers

To stay competitive, banks today have to improve their customer service constantly. Often old working methods and IT solutions do not allow implementing new technologies. Dmitry Oparin, Director of Operations at ELMA, told us how to optimize operations of a company with no damage to the infrastructure ilustrated by the Kapital Bank project.

Goals and bottlenecks
One of the main goals of the Kapital Bank project was to implement new methods for performance management. The bank’s branch network already had too many IT systems. There was an IT product almost for every task both in sales processes and in communication between branches. Many operations were done manually, and data had to be transferred between several systems. Training of new employees used to take longer than four months.

Kapital Bank: 90 branch offices in Azerbaijan, 22 thousand legal entities and 3 million individual persons as customers – that is every fifth citizen of Azerbaijan.

We made maps of the AS IS processes and understood that the processes were lacking policies and regulations for sales, document handling and communication.
Some regulations were recorded for the bank’s internal procedures, but they were neither updated nor controlled, as it often happens in large companies.

We knew that automating all the manual procedures would be ineffective and expensive. So we examined the bank’s procedures and designed executable processes aimed at accomplishing the bank’s goals. Those procedures that didn’t benefit the bank directly were scheduled to be automated later, if automated at all.
The main difficulty was that all the 90 branch offices of the bank provided the same services in different ways. The customers were already accustomed to how things were done in each office. It would have been risky to change the communication procedures completely, because it could drive away the customers. However, a transition from manual operations to a strict sequence of actions according to a business process allowed us to smoothen the possible negative reaction.

Moving from patchwork automation to streamlined business processes gave the following results:

  • All the bank’s offices now work integrally.
  • The executed operations depend less on the employee’s competence and motivation.
  • The time for training new hires has reduced.
  • It has become easy to find substitutes for employees.
  • The number of errors while working with IT solutions has reduced.
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    Alexander Khodyrev
    Localization Specialist