Business Process Management in Banking

Banks on a regular basis need to evaluate their procedures before initiating Business Process Management. Banks today employ BPM only for certain transactions which are very high in terms of volume but are of significantly low value as these high volume transaction load the back offices operations such as Clearing of operations and Payment processing for such a high volume of transactions.

Having a dedicated focus on similar transactions helps in high quality improvement of productivity and will also reduce the cost to a great extent. But to capitalize the complete potential of BPM banks ensure they can also use it for certain mission critical transactions which include account opening and administration, Loan account re-opening etc. BPM is set to help banks in creating a free up of time which can be used to better Customer service. Moreover, it provides ample time to serve a wide range of products and markets the bank caters to in their call centre interactions as a part of customer support and marketing activities, banks have adopted typical BPM functions such as workflow, activity monitoring, and automated exception management to provide better services to its customers.

It is an important fact that BPM can bring in optimization interms of many parameters only when banks keep their best efforts bringing in plenty of transaction types within the reach of BPM. Moreover banks regularly need to check the alignment of their BPM with their current IT architecture. As the biggest challenge that the bank faces currently is to align business with IT.

Currently banks are driving home the need to conform to a powerful breed of Service Oriented Architecture(SOA) based on Web service standards and enterprise application, However, BPM, SOA and Web Services truly complement each other as BPM facilitates the bank take a holistic view to streamline their processes throughout departments, partners and channels.

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Financial Credit Crunch effect on IT

Most of the period in 2008, Credit Crunch was the buzz word for most of the financial instititions globally. This credit crunch has resulted in the downfall of huge financial empires such as Lehman Brothers. This Financial Crunch has more than significant effort on IT Industry.

This Credit Crunch in the Global Financial Industry is a punch to Information Technology as most of the investments by Information Technology Companies result in ROI only after a certain period of time. Given the present crunch situation in the Financial Industry it is tough for the companies to wait for such a period of time and are holding of big projects such as upgrading dual core PC's and so on and are postponing their decisions.

Budget pressures are expected to drive businesses away from the licensing deals offered by companies such as Microsoft and the need for dedicated in-house IT support teams. This is causing the companies to move to open source technologies and the companies operating in this line of business can forsee a good opportunity. Indian outsourcing companies face considerable risk from their reliance on the global banking sector, with the country's top five service suppliers depending on the financial sector for about 45 percent of their business.

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