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Operational BI at Banks

Embedding Operational Business Intelligence (BI) tools to several banking operations can help operational managers get actionable insights on operational bottleneck, historical data etc. for managing, monitoring and for controlling contingencies.
By getting actionable and real time  insights on operational bottlenecks, managers can take corrective measures to eliminate operational flaws.  Let’s consider a simple example of a cheque clearance process at banks and see how Operational BI can help you get valuable insights to improve functional inefficiencies.

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Operational BI for Banks

‘A’ deposits a cheque in favor of ‘B’s account on day one. Afterwards, B’s bank processes the cheque which includes validation of cheque’s credentials and passes it on to A’s Bank. The cheque validation processes include a series of steps to identify instances of frauds, validation of  the sufficient amount of money at A’s account,  signatures,credentials, etc. and other issues that may obstruct the fund’s transfer process. The settlement process is over when A’s bank clears the payment to B’s Bank.

The cheque clearance process might seem simple at first sight, but there are several intricacies involved within the process. Firstly, there are many instances of frauds and tamperings such as counterfeit, forgery or alterations. Secondly, there are unpaid instances such as insufficient funds at customers account or there are several fields wrongly entered such as dates, wrong signature etc. It would be far too simple to manage these cases if there were less number of transactions, but consider how difficult it would be if there are millions of cheques being deposited and cleared every day. Besides, it is difficult to give answers to customers who inquire about why their cheque’s being bounced or other queries related to their settlement processes.

Where does Operational BI fits in?

Since the settlement process is complex and takes a lot of time in terms of the number of days to clear a cheque, wouldn’t it be nice if fraud cases could be detected real time to reduce operational risks?  Well, here’s a tip on how you can do this? Business rules can be applied by analyzing history of frauds that would signify potential fraud while managing daily operations and reducing the number of frauds. Operation BI can also help customers get real-time information about their queries thereby reducing user reaction for any issue. It can also be integrated with functional processes and functional applications to get actionable insights. In the cheque clearing process, an operational BI can help managers know how many cases of frauds appeared per day, cases of insufficient amount, cases of halt, or number of cheques that were forged or tampered.