This is the last post in a four-part blog series exploring opportunities and challenges faced by Asia Pacific financial institutions in relation to two often-conflicting organizational imperatives: regulatory compliance, and customer experience. The first blog, the second looked at , and the third was about the .
As in our personal lives, solutions to business challenges come more easily with greater breadth and quality of information, and a clear understanding of what is to be gained, or lost, from each outcome. And in both contexts, gaining this information can pose a challenge!
PwC has producedon how financial service compliance systems can be modernized to perform more effectively—both in terms of managing known and emerging risks.
“Sustainably” is the common thread in these recommendations – implying a holistic, systemic approach, which can only be achieved with transparency and value as the fundamental guiding elements.
To achieve sustainability, financial service providers need to build and manage compliance systems which are agile and scale as the regulatory environment changes. They must be able to respond with speed, and with confidence that the right stakeholders have been consulted and informed to ensure operations remains in line with compliance obligations. And this must be done in a way which does not compromise the customer experience any more than necessary. A tall order for any Executive.
Business Process Management (BPM) is a business management discipline, capable of tying these approaches together into a cohesive, systemic model.
BPM’s unique suitability for effectively managing complex systems, like compliance systems, comes from its focus on end-to-end processes, and its resulting ability to closely align business activities with value. It is a pragmatic way for financial service providers to map out the activities, roles, and responsibilities, as well as all IT systems and applications into the compliance system. In fact with BPM transparency and control can be gained across the whole business operating system. This means Executives and other stakeholders gain the transparency required to be proactive when it comes to managing known risks, and agile when emerging risks must be addressed within the system. This makes the whole system more aligned with business strategy and primed for innovation.
With BPM, compliance systems can be designed to meet the needs of the organization in terms of risk management, as well as creating the transparency required to ensure customers receive fast, pleasurable service (i.e. great customer experience) – amplifying competitive advantage.
As financial service providers embark on fundamental simplification projects and operating model transformations, many are finding the fragmentation and complexity of their compliance and service delivery models means that their strategic objectives and operations are not in alignment. BPM creates the conditions necessary to move into a leaner, simpler, and more agile operating model. By focusing on alignment and value creation in the operating model, the compliance and service delivery/customer experience challenges faced by financial service providers in the Asia Pacific can be not just reduced, but turned into sources of competitive advantage—forming the basis of consumer and stakeholder trust.
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