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How to Reduce Customer on Boarding Time

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Newgen Software Technologies Limited
Newgen Software Technologies Limited

This document discusses a case study of a leading private sector bank in India implementing a business process management system using Newgen software. The bank was facing challenges with high volumes, inefficiencies in their manual account opening process, lack of process standardization, and high costs. They implemented Newgen's OmniFlow, OmniDocs, and OmniScan solutions to digitize and automate their end-to-end account opening workflow. This improved processing capacity by over 41%, first time completion by 29%, SLAs by 36%, and reduced turnaround times by 60%, addressing the bank's key challenges.

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Case Study BANKING SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT Business Process Management System For a Leading Private Sector Bank Overview The bank is among the first of the new-generation private-sector banks granted licenses in the mid-nineties to drive the process of reform in the banking sector. During this tenure, the bank has progressed in the areas of technology-supported processes, cost-efficient, and customer-friendly banking systems. The success path has not only been in the Corporate and Wholesale Banking but also in the Retail Banking. Apart from the Corporate, Wholesale and Retail banking, the other broad lines of business include Treasury and Foreign Exchange, Investment Banking, Capital Markets, Non-Resident Indian (NRI)/High Net worth Individual (HNI) Banking, and Information Technology (through a subsidiary). The bank provides multi-channel facilities including ATMs, Net Banking, Mobile Banking, Phone Banking, Multi- city Banking and International Debit Cards. The Challenge The bank found that there was wide business growth potential for the various banking and security products along with other services it The bank is among the first of the offered, provided they could become customer centric, scale up their new-generation private-sector operations and at the same time maintain cost efficiencies and targeted banks granted licenses in the mid- service levels. nineties to drive the process of reform in the banking sector. Furthermore, in late 2008, the bank observed that the existing account- opening environment had grown more complicated, due to changing market environment and regulatory mandates. The bank experienced that the manual movement of original documents resulted in a greater turn-around-time (TAT) for the account opening process. The bank also found that the application quality along with the CPU usage was deteriorating. It was leading to a lot of iterations and re-work. Moreover, the documents transferred via courier were also getting misplaced during the transit from the branch offices to the central office. The escalations and intimations were done manually via mail. It was further observed that this manual process was prone to errors. The document verification and status updating was being carried out using Excel sheets in which the TAT was not monitored. Other key challenges are highlighted below: ! High Transaction volumes coupled with high annual growth rate being envisaged along with increasing geographical spread ! Multiple products across Current Account and Savings Account ,Third Party Products being serviced across a wide geography through www.newgensoft.com
Case Study BANKING SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT separate operating models as suited for each sourcing channel ! Process implementation and monitoring not fool proof: Due to the spread and the multiplicity of processes, accentuated by the changes in the external environment like regulatory mandates as well as competition, the changes to the operating processes are very frequent. Without a system tool, manual implementation of the processes was prone to errors. Variations crept in at different centers, which were difficult to detect and influenced the uniform customer experience ! Manual monitoring of operational metrics: The core banking system did not provide metrics for each work item for each stage of processing. Rather these systems only gave data for one of the stages in the process i.e. Account opening. Most of customer issues occurred pre and post account opening, for which there were no system metrics. These metrics were manually tracked and were costly to record since it was duplicity of work and could at times be inaccurate The Benefits ! Process redundancies: All processes had significant redundancies ! Processing capacity increased by around data capture and work forwarding since manual recording was over 41% done at each stage. The data captured at the previous stage remained in ! Completing the process first time individual department PC files and was created afresh at the next stage right (FRT), improved by 29%. ! High cost of operations: The cost of operations was high due to ! Adherence to SLAs improved by manual work forwarding and movement of physical files through 36% courier between branches and central operations. Physical storage at ! TAT improved by 60%. The field offices was also cost intensive and resulted in delays in retrieving solution enabled the bank to physical records reduce turn-around-time (TAT). ! High degree of operational risk: With all account / transaction The bank can now use the documents existing only in physical form, without and digital backup, Newgen solution to drive overall the degree of operational risk was very high in case the physical storage operational excellence was compromised. Work re-routing and distribution across various ! The solution encompasses a geographical locations was also not possible due to dependence on customer centric approach physical documents for processing fulfilling the main objective of ! Non standard customer service: Due to variations in process efficient account opening implementation across locations and time taken to secure central ! Quick and easy retrieval of operations approvals, the customer service and customer experience was documents, resulting in manifold not uniform across the various branches of IBL increase in the efficiency of the entire process The Newgen Solution The Newgen Solution consisted of OmniFlowTM, OmniDocsTM and TM OmniScan . Newgen's BPM product suite, called OmniFlow™ is a Universal Workflow Solution. OmniDocs™ solution tightly integrated with the OmniFlow™ solution enables document scanning, indexing, archival and retrieval processes once the documents/forms get transferred in the workflow. OmniScan™ enables the document scanning for the customer(s) at the Regional Processing office followed by transferring the documents to the BPM enabled workflow. The Account Opening Process was implemented by the bank on very fast track across all 230+ branch network at the time of implementation along with Representative Offices located abroad. Implementation also involved setting up independent scanning HUBs for region and branches producing high numbers. Entire process is www.newgensoft.com
Case Study BANKING SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT complying with norms of RBI (Central Bank of India) and Audit. Scanning HUB is not only responsible for Scanning but also responsible for Physical Form Management. The bank has implemented process in record breaking time of 3 months which involves setting up scanning HUB at 30 key locations and training and initiation from all 230+ branch network. The solution provided by Newgen catered to the various sub-processes for the Account Opening Process. The solution worked upon and enhanced the following sub-processes: ! Branch Operations: The account opening applications are received and introduced in the Workflow by creating work item(s). An initial data entry is performed and the work item is routed to the branch verification work step. ! Scanning at HUB: The documents for all the introduced work item(s) against each application number are scanned at the Branch/HUB. The image QC is carried out at the Branch/HUB scanning station. The Challenges ! Quick Account Opening: It involves Document Verification at the ! Process implementation and CPU along with the data entry make and check feature. This is monitoring not fool proof accomplished by viewing the scanned images available in the TM ! Manual monitoring of OmniFlow . The work item(s) are routed to Audit followed by the operational metrics DMS archival. TM ! Process redundancies ! Signature Download: The OmniScan cropped signatures are TM ! High cost of operations available in OmniDocs . Newgen provides the feature of searching and ! High degree of operational risk downloading the signature along with the application form documents. ! Non standard customer service This further leads to faster processing. ! Tatkal Process: The solution generates the account numbers and dispatches the Welcome kit. The bank took an initiative to centralize a number of back office operations so as to improve operational controls, bring about standardization and reduce the operational work at the branches. With Centralization, the bank experienced that the physical movement of documents resulted in a greater turn-around time (TAT) for the account opening process. In case of exceptions, the exception resolution added further to the a/c opening TAT since documents had already reached central operations and exception notification was not online. A COE (Center of Excellence) was formulated with the cross-functional team from the bank and supported by the Newgen consultants. The COE works towards the continuous improvement of the processes in the bank. Note: Within a span of two months of going live, the bank has successfully processed more than 10,000 Account Opening Applications (work items) in the system. Moreover, the efficient solution provided by Newgen has encouraged the bank to plan and automate other bank processes like the Procurement, Business Banking and Claim/Bill Disbursement processes. www.newgensoft.com
Case Study BANKING SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT The Benefits Newgen solution benefitted the bank in the following ways: ! Processing capacity increased by over 41% ! Completing the process first time right (FRT), improved by 29%. ! Adherence to SLAs improved by 36% ! TAT improved by 60%. The solution enabled the bank to reduce turn- around-time (TAT). The bank can now use the Newgen solution to drive overall operational excellence ! The solution encompasses a customer centric approach fulfilling the main objective of efficient account opening ! Quick and easy retrieval of documents, resulting in manifold increase in the efficiency of the entire process ! System guidance for processing the Account Opening form ! Cost cuttings resulting from documents being converted to digital scanned images as well as reduction in photocopying and courier costs Newgen prestigious clients ! High-level scrutiny by system for processing the applications include HSBC Bank, Deutsche ! Web based access to images from different locations Bank, Hua Nan Bank, ICICI ! Rights based access to the system for ensuring security Bank, IDBI Bank, State Bank of I n d i a , I N G Vy s y a B a n k , CitiFinancial, RAK Bank, Bank About Newgen of Tanzania, Max New York Life, Newgen Software Technologies Limited is the market leader in Business Bajaj Allianz, Royal Sundaram Process Management (BPM) and Enterprise Content management Alliance, Unilever, Philips, GE (ECM), with a global footprint of 800 installations in over 40 countries Countrywide, EXL, Satyam with large, mission-critical solutions deployed at the world's leading Nipuna, iGATE, Core 3, Ranbaxy, Banks, Insurance firms, BPO’s, Healthcare Organizations, Government, GSL, Kenyan Airways and SEC Telecom Companies & Shared Service Centers. Phillippines. Newgen Software has been positioned in the Magic Quadrant for Business Process Management (BPM) and Enterprise Content Management (ECM). The company has been recognized by distinguished analyst firms like Frost and Sullivan as A 'Hot Company to Watch for' in their global ECM Market report, 2009 and by IDC in its exclusive report “Newgen Software: Global Leader in Business Process Management and Document Management Solutions”. Newgen is a winner of prestigious awards, such as the CNBC-TV18, “Emerging India Award 2008”. With HSBC and SAP investment, Newgen is one of the rare product company to have backing of both leading financial and technology companies of the world. Newgen’s Quality Systems are certified against ISO 9001:2008 and Information Security Standard, ISO 27001:2005. Newgen has been assessed at CMMI Level3. Corporate Office US UAE Newgen Software Technologies Ltd. Newgen Software Inc.. Newgen Software Technologies Ltd. A-6, Satsang Vihar Marg, 1364 Beverly Road, Suite 300 YI 46, PO Box 120586 Qutab Institutional Area, McLean, VA 22101 Sharjah Airport International Free Zone New Delhi - 110 067 INDIA Tel: +1-703-439-0703 Sharjah, United Arab Emirates (UAE) Tel: +91-11-4077 0100, 2696 3571 Email: usa@newgensoft.com Email: emea@newgensoft.com Fax: +91-11-2685 6936 Email: corpmktg@newgensoft.com UK Newgen Software Technologies Ltd. www.newgensoft.com 68 Lombard Street, BK-CS-the bank London EC3V, 9LJ Tel: +44-207-868 1736 Mobile: +44-78154 96669 Email: intmkt@newgensoft.com

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How to Reduce Customer on Boarding Time

  • 1. Case Study BANKING SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT Business Process Management System For a Leading Private Sector Bank Overview The bank is among the first of the new-generation private-sector banks granted licenses in the mid-nineties to drive the process of reform in the banking sector. During this tenure, the bank has progressed in the areas of technology-supported processes, cost-efficient, and customer-friendly banking systems. The success path has not only been in the Corporate and Wholesale Banking but also in the Retail Banking. Apart from the Corporate, Wholesale and Retail banking, the other broad lines of business include Treasury and Foreign Exchange, Investment Banking, Capital Markets, Non-Resident Indian (NRI)/High Net worth Individual (HNI) Banking, and Information Technology (through a subsidiary). The bank provides multi-channel facilities including ATMs, Net Banking, Mobile Banking, Phone Banking, Multi- city Banking and International Debit Cards. The Challenge The bank found that there was wide business growth potential for the various banking and security products along with other services it The bank is among the first of the offered, provided they could become customer centric, scale up their new-generation private-sector operations and at the same time maintain cost efficiencies and targeted banks granted licenses in the mid- service levels. nineties to drive the process of reform in the banking sector. Furthermore, in late 2008, the bank observed that the existing account- opening environment had grown more complicated, due to changing market environment and regulatory mandates. The bank experienced that the manual movement of original documents resulted in a greater turn-around-time (TAT) for the account opening process. The bank also found that the application quality along with the CPU usage was deteriorating. It was leading to a lot of iterations and re-work. Moreover, the documents transferred via courier were also getting misplaced during the transit from the branch offices to the central office. The escalations and intimations were done manually via mail. It was further observed that this manual process was prone to errors. The document verification and status updating was being carried out using Excel sheets in which the TAT was not monitored. Other key challenges are highlighted below: ! High Transaction volumes coupled with high annual growth rate being envisaged along with increasing geographical spread ! Multiple products across Current Account and Savings Account ,Third Party Products being serviced across a wide geography through www.newgensoft.com
  • 2. Case Study BANKING SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT separate operating models as suited for each sourcing channel ! Process implementation and monitoring not fool proof: Due to the spread and the multiplicity of processes, accentuated by the changes in the external environment like regulatory mandates as well as competition, the changes to the operating processes are very frequent. Without a system tool, manual implementation of the processes was prone to errors. Variations crept in at different centers, which were difficult to detect and influenced the uniform customer experience ! Manual monitoring of operational metrics: The core banking system did not provide metrics for each work item for each stage of processing. Rather these systems only gave data for one of the stages in the process i.e. Account opening. Most of customer issues occurred pre and post account opening, for which there were no system metrics. These metrics were manually tracked and were costly to record since it was duplicity of work and could at times be inaccurate The Benefits ! Process redundancies: All processes had significant redundancies ! Processing capacity increased by around data capture and work forwarding since manual recording was over 41% done at each stage. The data captured at the previous stage remained in ! Completing the process first time individual department PC files and was created afresh at the next stage right (FRT), improved by 29%. ! High cost of operations: The cost of operations was high due to ! Adherence to SLAs improved by manual work forwarding and movement of physical files through 36% courier between branches and central operations. Physical storage at ! TAT improved by 60%. The field offices was also cost intensive and resulted in delays in retrieving solution enabled the bank to physical records reduce turn-around-time (TAT). ! High degree of operational risk: With all account / transaction The bank can now use the documents existing only in physical form, without and digital backup, Newgen solution to drive overall the degree of operational risk was very high in case the physical storage operational excellence was compromised. Work re-routing and distribution across various ! The solution encompasses a geographical locations was also not possible due to dependence on customer centric approach physical documents for processing fulfilling the main objective of ! Non standard customer service: Due to variations in process efficient account opening implementation across locations and time taken to secure central ! Quick and easy retrieval of operations approvals, the customer service and customer experience was documents, resulting in manifold not uniform across the various branches of IBL increase in the efficiency of the entire process The Newgen Solution The Newgen Solution consisted of OmniFlowTM, OmniDocsTM and TM OmniScan . Newgen's BPM product suite, called OmniFlow™ is a Universal Workflow Solution. OmniDocs™ solution tightly integrated with the OmniFlow™ solution enables document scanning, indexing, archival and retrieval processes once the documents/forms get transferred in the workflow. OmniScan™ enables the document scanning for the customer(s) at the Regional Processing office followed by transferring the documents to the BPM enabled workflow. The Account Opening Process was implemented by the bank on very fast track across all 230+ branch network at the time of implementation along with Representative Offices located abroad. Implementation also involved setting up independent scanning HUBs for region and branches producing high numbers. Entire process is www.newgensoft.com
  • 3. Case Study BANKING SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT complying with norms of RBI (Central Bank of India) and Audit. Scanning HUB is not only responsible for Scanning but also responsible for Physical Form Management. The bank has implemented process in record breaking time of 3 months which involves setting up scanning HUB at 30 key locations and training and initiation from all 230+ branch network. The solution provided by Newgen catered to the various sub-processes for the Account Opening Process. The solution worked upon and enhanced the following sub-processes: ! Branch Operations: The account opening applications are received and introduced in the Workflow by creating work item(s). An initial data entry is performed and the work item is routed to the branch verification work step. ! Scanning at HUB: The documents for all the introduced work item(s) against each application number are scanned at the Branch/HUB. The image QC is carried out at the Branch/HUB scanning station. The Challenges ! Quick Account Opening: It involves Document Verification at the ! Process implementation and CPU along with the data entry make and check feature. This is monitoring not fool proof accomplished by viewing the scanned images available in the TM ! Manual monitoring of OmniFlow . The work item(s) are routed to Audit followed by the operational metrics DMS archival. TM ! Process redundancies ! Signature Download: The OmniScan cropped signatures are TM ! High cost of operations available in OmniDocs . Newgen provides the feature of searching and ! High degree of operational risk downloading the signature along with the application form documents. ! Non standard customer service This further leads to faster processing. ! Tatkal Process: The solution generates the account numbers and dispatches the Welcome kit. The bank took an initiative to centralize a number of back office operations so as to improve operational controls, bring about standardization and reduce the operational work at the branches. With Centralization, the bank experienced that the physical movement of documents resulted in a greater turn-around time (TAT) for the account opening process. In case of exceptions, the exception resolution added further to the a/c opening TAT since documents had already reached central operations and exception notification was not online. A COE (Center of Excellence) was formulated with the cross-functional team from the bank and supported by the Newgen consultants. The COE works towards the continuous improvement of the processes in the bank. Note: Within a span of two months of going live, the bank has successfully processed more than 10,000 Account Opening Applications (work items) in the system. Moreover, the efficient solution provided by Newgen has encouraged the bank to plan and automate other bank processes like the Procurement, Business Banking and Claim/Bill Disbursement processes. www.newgensoft.com
  • 4. Case Study BANKING SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT The Benefits Newgen solution benefitted the bank in the following ways: ! Processing capacity increased by over 41% ! Completing the process first time right (FRT), improved by 29%. ! Adherence to SLAs improved by 36% ! TAT improved by 60%. The solution enabled the bank to reduce turn- around-time (TAT). The bank can now use the Newgen solution to drive overall operational excellence ! The solution encompasses a customer centric approach fulfilling the main objective of efficient account opening ! Quick and easy retrieval of documents, resulting in manifold increase in the efficiency of the entire process ! System guidance for processing the Account Opening form ! Cost cuttings resulting from documents being converted to digital scanned images as well as reduction in photocopying and courier costs Newgen prestigious clients ! High-level scrutiny by system for processing the applications include HSBC Bank, Deutsche ! Web based access to images from different locations Bank, Hua Nan Bank, ICICI ! Rights based access to the system for ensuring security Bank, IDBI Bank, State Bank of I n d i a , I N G Vy s y a B a n k , CitiFinancial, RAK Bank, Bank About Newgen of Tanzania, Max New York Life, Newgen Software Technologies Limited is the market leader in Business Bajaj Allianz, Royal Sundaram Process Management (BPM) and Enterprise Content management Alliance, Unilever, Philips, GE (ECM), with a global footprint of 800 installations in over 40 countries Countrywide, EXL, Satyam with large, mission-critical solutions deployed at the world's leading Nipuna, iGATE, Core 3, Ranbaxy, Banks, Insurance firms, BPO’s, Healthcare Organizations, Government, GSL, Kenyan Airways and SEC Telecom Companies & Shared Service Centers. Phillippines. Newgen Software has been positioned in the Magic Quadrant for Business Process Management (BPM) and Enterprise Content Management (ECM). The company has been recognized by distinguished analyst firms like Frost and Sullivan as A 'Hot Company to Watch for' in their global ECM Market report, 2009 and by IDC in its exclusive report “Newgen Software: Global Leader in Business Process Management and Document Management Solutions”. Newgen is a winner of prestigious awards, such as the CNBC-TV18, “Emerging India Award 2008”. With HSBC and SAP investment, Newgen is one of the rare product company to have backing of both leading financial and technology companies of the world. Newgen’s Quality Systems are certified against ISO 9001:2008 and Information Security Standard, ISO 27001:2005. Newgen has been assessed at CMMI Level3. Corporate Office US UAE Newgen Software Technologies Ltd. Newgen Software Inc.. Newgen Software Technologies Ltd. A-6, Satsang Vihar Marg, 1364 Beverly Road, Suite 300 YI 46, PO Box 120586 Qutab Institutional Area, McLean, VA 22101 Sharjah Airport International Free Zone New Delhi - 110 067 INDIA Tel: +1-703-439-0703 Sharjah, United Arab Emirates (UAE) Tel: +91-11-4077 0100, 2696 3571 Email: usa@newgensoft.com Email: emea@newgensoft.com Fax: +91-11-2685 6936 Email: corpmktg@newgensoft.com UK Newgen Software Technologies Ltd. www.newgensoft.com 68 Lombard Street, BK-CS-the bank London EC3V, 9LJ Tel: +44-207-868 1736 Mobile: +44-78154 96669 Email: intmkt@newgensoft.com