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Benefits from implementing BPM solution at a leading bank

At a Glance

Abu Dhabi Commercial Bank (ADCB), with a strong

presence in Consumer and Corporate Banking, is a leading

provider of technology-enabled services. In its objective

towards complete automation of processes, the bank was

in urgent need for a solution that would enable end-to-end

automation of its key business processes and also provide

integration with its existing applications. Newgen provided

the bank with a BPM-enabled workflow platform that not

only helped the bank to automate its processes, but also

allowed seamless integration of the BPM solution with the

existing applications.

of the BPM solution with the existing applications. Key Benefits Area Benefits* TATs, processing time and

Key Benefits

Area

Benefits*

TATs, processing time and servicing time

TATs, processing time and servicing time More than 70%

More than 70%

Customer Service Quality and Satisfaction

Customer Service Quality and Satisfaction For both existing & new customers

For both existing & new customers

Dependency on physical documents

Dependency on physical documents 100%

100%

Volumes of transactions handled per day

Volumes of transactions handled per day 100%

100%

“Greater flexibility to amend and improvise processes –allowed the bank to incorporate Islamic banking norms, in a very short duration”

Key Challenges

• Processing delays and low productivity

• Dependency on physical movement of documents

between branches and departments

• Difficulty in verification process and error identification

due to unavailability of documents

• Difficulty in tracking and monitoring of processes

• Major challenges in incorporating process change

requirements using the existing application

Return on Investment of

190%

#

# Refer “Methodology” section for details on how Return on Investments (ROI) has been calculated * As per data provided by Newgen’s client

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Background

Starting its operations in 1985, ADCB has established itself

as the bank of choice for a large number of customers in the

UAE. The bank has been making steady investments in its IT

infrastructure and business automation solutions. Along

with a core system, the bank also uses a card management

system for debit and credit cards, a courier system for

dispatch and tracking of customer documents, and a Short

Messaging System (SMS) application for customer

communications. However, most of these applications and

Key Challenges

processes were operating without any integration between

each other. The bank wanted a solution which would

provide the platform for complete automation and

integration between processes and existing legacy system.

This requirement was also in line with the bank's

commitment towards technology adaptation for

restructuring programme aimed at becoming the most

preferred bank for both external and internal customers.

Area

Key Challenges

Process Related

Physical transportation of documents between departments and branches increased the waiting time for Central Processing Department, which had to wait for documents to arrive from branches to start processing

Delay in indentifying discrepancies as verification was being done only at Central Processing Department

Time-consuming process that affected TAT because of :

 

¤ Duplication of data-entry activities in standalone systems

¤ Time required for searching and extracting of information from different sources

Data Related

High percentage of erroneous data–existing application did not support data validation and verification at the time of data entry

Difficulty in compliance management and auditing

Customer Service

High turn around time for account activation–users were unable to initiate account opening process directly in the core system

Delays in customer communication–it used to take 4-5 days to inform customer's of their account activation

Document Related

Difficulty in accessing and tracking of documents

High risk of documents getting misplaced or lost

No features to scan and upload images of documents in the system

User Related

Low productivity–the standalone application made the process cumbersome and time consuming due to work duplication, inability to access data from other systems and document dependency

Difficulty in monitoring and tracking user performance

Challenges in increasing employee efficiency

The Solution

Based on the bank's requirements, Newgen developed a customized solution, consisting of the following products:

OmniFlow

TM

workflow solution

OmniDocs

TM

document management solution

OmniScan

indexing solution

TM

(OmniCapture) – image capture and

In

of

Integrated with the bank's existing core application, the solution provides easier and faster data exchange across

systems. Buoyed by the results achieved within a short time

of deployment, the bank also implemented and automated

a number of other key processes such as Customer and

Account Maintenance, Term Deposit Initiation and Maintenance on the BPM platform. At present, the solution has been implemented across 43 branches of the bank and supports 706 users. Every month, more than 61,000 documents are scanned and imported into the workflow for processing. For Account Opening, the system processes approximately 245 applications every day and can be easily scaled up to meet any future requirement of the bank.

the initial phase, Newgen helped the bank automate one

its most critical processes, the Account Opening process.

Account Opening process: The new system allows users

to capture relevant information and customer signoff at the

branches itself before the case files move to the Central Processing Department (CPD). Instead of customers having to submit complex forms, the system automatically generates the required forms. The branches update these forms online and take customer signoff before uploading in the system. On completion of the mandatory branch level activities, the files move to the CPD immediately for further processing. Through real time integration with the core system, CPD users directly initiate the Account Opening process from the workflow solution. Through integration with the SMS system, the solution enabled the team to communicate to customers within 10-15 minutes of their account becoming operational. The solution also generates the welcome letter within 30 minutes of account activation. Post account activation, CPD is able to track and monitor the dispatch of the welcome kits to customers through the courier system, which has also been integrated with the workflow solution.

which has also been integrated with the workflow solution. Some of the unique features of the

Some of the unique features of the solution were:

Key Features:

• Real-time integration with core system and other existing applications

• Searching

for

existing

customer

record

and

comprehensive validation check at the branch level

• User friendly interface

• Direct updating of customer information in the core banking system through real-time integration

• Generation of complete audit trail to view history of events taken place for any record

• Display of relevant information from the core application reducing information searching and retrieving time

• Automatic

generation

of

relevant

documents

at

different

worksteps

of

the

process

including

the

welcome letter

 

• Tracking

and

monitoring

of

process

and

user

performance

• Scanned documents can be introduced into the workflow from any location, providing instant access for processing and eliminating document-arrival waiting time

“End–to–end solution enables the bank to process applications, capture customer information, track and monitor the status of debit card generation, process cheque book request and welcome kit dispatch, more efficiently”

Key Benefits and ROI

Benefits accrued to the bank were both direct and indirect. In addition to reduction in operating costs, travel and communication expenses, office stationaries, infrastructure usage, printing and postage costs, the bank also achieved enhanced employee productivity and efficiency.

Key Benefits

• Allowed real-time integration with the bank's core system and other applications

• Enabled the bank to easily capture extensive customer information as per “Know Your Customer” norms for statutory compliance and audits

• Reduced TAT for Account opening and other processes

• Better archiving system, providing better and faster access to documents and customer information

• Flexible solution, in terms of incorporating changes in short durations in accordance with business requirements

• Ease in handling complex processes having multiple if- else-then condition

• Scalable solution that enables faster rollout of initiatives and handle increasing business volumes

• Unified interface for all the underlying applications providing business users with enhanced ease of usage and perform multiple tasks through single system access

• Enhanced performance tracking of the business users, process and TAT

• Extended availability of the solution by providing secured access to the bank's Direct Selling Agents

TAT • Extended availability of the solution by providing secured access to the bank's Direct Selling

Other Benefits

• Improved productivity and efficiency of employees – with reduction in non-core activities, branch executives are able to cross-sell other products

• Improved quality of data being captured through in- built validations and checks

• Removal of work duplication by restricting data entry at the branch operations only

• Identification of discrepancies at an earlier stage and their faster resolution through checking and validation utilities while doing data entry at the branch level

• Scaling up of operational activities, enabling the bank to keep pace with business growth and demands

• Improved customer satisfaction through quicker and better servicing, reduction in the requirement of physical forms, and reduced customer response timelines

# Refer “Methodology” section for details on how Return on Investments (ROI) has been calculated * As per data provided by Newgen’s client

#

ROI of 190% has been achieved by the Abu Dhabi Commercial Bank over one year

Methodology

The ROI calculation represents the relative value of a project's cumulative net benefits over the analysis period, divided by the project's cumulative costs, expressed as a percentage. In a formula, this can be represented as:

ROI = cumulative net benefit / total costs. For Abu Dhabi Commercial Bank, the ROI it achieved from the implementation of Newgen's BPM solution was derived on the basis of total benefits achieved and investments made by the company over a period of one year.

Investments include both one time and annual recurring costs incurred by the bank, for components like:

• Hardware and software

• Implementation and initial license cost,

• Maintenance and production support

• User training

Benefits were calculated by quantifying the returns achieved through TAT improvements, higher employee productivity and reduction in various cost heads. In case of Abu Dhabi Commercial Bank, some of the benefit areas evaluated were:

• Resource savings – from reduced hirings

• Time savings – reduction in processing time

• Capital expense reductions – savings in expenses such as facilities, workstations, rentals

• Productivity

benefits

increase

in

transactions processed per day

volumes

of

The above mentioned data and information was sourced through the following:

• Primary Research (customized questionnaire)

• Secondary Research (Third Party Industry Reports and Deloitte Global Benchmarks and Survey Reports)

Disclaimer

The ROI analysis was commissioned by Newgen and has been done by Deloitte for the the clients provided by Newgen. The analysis was done based on data provided by Newgen and its client and Deloitte makes no assertions on the potential ROI that other organizations might receive by using Newgen's solutions. Deloitte has verified the data but due to nature of the study and solution implementation timelines involved certain assumptions have been made to derive the potential ROI therefore it can impact the accuracy of the data and analysis. This case study is a validation of the benefits that one of the leading Middle East bank, derived from implementing Newgen solutions in its operational and business scenario and is not meant to be used for competitive product analysis. The study was commissioned only for calculation of the ROI derived from implementing Newgen's solutions and not to endorse its solutions by Deloitte.

This document contains general information only and Deloitte Touché Tohmatsu India Pvt. Ltd is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you are advised to consult a qualified professional advisor. Deloitte, its affiliates and related entities shall not be responsible for any loss sustained by any person who makes decisions based solely on the information present in this publication. Deloitte, its affiliates and related entities shall not be responsible for any future changes or modifications done to the signed off published document.

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About Newgen

Newgen Software Technologies Limited is the market leader in Business Process Management (BPM) and Enterprise Content Management (ECM), with a global footprint of about 750 installations in over 35 countries. More than 100 of these implementations are large, mission-critical solutions deployed at world's leading BFSI, BPO and Fortune Global 500 companies.

Newgen is 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 award, such as CNBC-TV18, “Emerging India Award 2008”.

With HSBC and SAP investment, Newgen is one of the rare product companies 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.

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