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Breaking Process Bottlenecks Within Financial Services

Just like a physical bottle that narrows at the neck and impedes the flow of liquid, your role, department, or business unit can be held back by hidden bottlenecks in your process flows. 

Before we get into why process bottlenecks within financial services are so detrimental, we need to define what we mean by bottlenecks.

For our purposes here, we’re defining a bottleneck relating to business functions in the financial services industry as anything that keeps you or your organisation from achieving its goals.

A bottleneck is anything that keeps you or your organisation from achieving its goals. 

Seeing the Unseen

You may think that there aren’t any real barriers between you and success, but there could be some unseen obstacles standing in your way.

For example, you may have inherited daily tasks, a business function, or even an entire production process from those who worked for your department or organisation years ago.

Those seemingly benign manual processes, repetitive tasks, or legacy systems may have made business sense at the time, but they could be working against you now, keeping your team from implementing the agile transformation your business desperately needs.

We routinely speak to business leaders in the banking sector who want to accelerate time to market but are wrestling with mundane tasks and antiquated business processes from a banking industry model that no longer exists! These holdovers of “Days-Gone-By” impede digital transformation for modern financial services companies.

The longer these go unaddressed, the harder change becomes. And when compounded and multiplied across any entire company…?

What you thought were mere annoyances may lead to serious business challenges — from increased operational costs and communication breakdowns to misaligned expectations, siloed data, reduced turnaround time and employee frustration.

Left unchecked, entrenched process bottlenecks can have a tangible negative impact on revenue, resulting in poor customer experience, lost sales and increased customer dissatisfaction. According to Bain & Co., since 2011, the banking industry has lost close to $210BN due to poor internal processes.

Courtesy of Bain & Co.

For many financial service companies, the coronavirus pandemic exposed many outdated business processes and made things worse. McKinsey reports that mortgage providers are still struggling to provide credit in a timely manner.

In their latest COVID-19: Briefing note #84 from December 8, 2021, they write:

“The mortgage industry has been gradually adopting technology to streamline processes. But there is still an opportunity for investors to help make getting mortgages easier, faster, and cheaper, with increased digitization and automation, and through offerings from nonbank lenders, next-generation subservicers, nonqualified mortgage lenders, and companies bundling home-buying services.”

COVID-19: Briefing note #84 December 8, 2021

From slow-to-react business behemoths to pandemic-stung departments, outdated, lengthy and poorly managed and maintained processes are impacting financial service organisations across the industry.

The question is, how can financial institutions overcome this hurdle, become nimble and respond proactively to the challenge?

Put Your Processes Under the Process X-Ray

In many organisations, leadership’s first instinct is to gather the relevant stakeholders together to deal with problems by committee.

This can be a big mistake.

Committees and meetings look good on paper, but gathering to merely talk about process flows often results in wasted time and wasted money. Expressed opinions (even well-intentioned opinions) end up generating a lot of noise but little progress — especially when trying to analyse an entire process as a group.

Group consensus is a breeding ground for inaccuracies and exaggerations.

To break process bottlenecks, you need objectivity, not opinions. You need a way to visualise process flows with precision, using an objective system to dig down to basics and surface real system data in real time, identifying process bottlenecks without egos or turf wars.

Unitek Process X-Ray provides a solution to address this challenge. Combining Unitek Process X-Ray with dashboards built atop our visualisation layer, can help you instantly identify where bottlenecks may be lurking in your organisation, unlock hidden costs, and signal ways to speed up delivery of value to internal and external customers.

For modern agile teams, capturing an end-to-end process flow, visualising data routes taken, breaking bottlenecks and displaying successful outcomes can deliver a powerfully accurate picture and path forward to business success.

Armed with one version of the truth, you’re empowered to modernise business models and implement necessary changes based on fact not opinion, then test and deploy for improved process handling.

Want to learn more? Click here to request a demo to see Process X-Ray in action.

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