Back office systems in asset management and trading are complex and require significant manual intervention to complete a range of operations - processing trades on various systems, settling orders, administrating portfolios, and executing fund accounting. Robotic Process Automation (RPA) can handle recurring incidents but often fails to interact adequately within the IT landscape. By using root cause analysis, process mining can close the gap between systems’ interfaces and provide the basis for standardized datasets, ready for re-use.
Process mining technology detects the digital footprint and visualizes workflow traces. As long as a unique identifier is assigned and traceable (e.g. trade ID, funds number), process mining can cross the interface/system ‘borders’ between IT systems and make process sequences visible for all variants, showing their frequency in real time. In this way, target processes can be recorded and operative measures can be controlled. In addition, central monitoring of the (pre-defined) KPIs becomes possible.
The extraction of the necessary data often seems daunting, as it requires expert knowledge of business units and application owners. The technical preconditions are:
Analyzing weak spots in end-to-end processes is rather difficult and the specialist teams are typically only able to assess parts of these processes. In addition, there are stringent data protection regulations and the works council rules that need to be adhered to.
Process mining can provide transparency about the many manual adjustments that are needed daily. Here are some examples:
Significant potential for automation remains untapped if systems or the interfaces between them are not able to process data automatically due to a lack of standardization. Documenting and recording each single deviation from the defined STP-path are necessary to identify, quantify, and evaluate measurements required for automation and thus for achieving a significant increase in process efficiency.
Process mining uses artificial intelligence-based tools to convert data-driven insights into actions and optimize workflows in line with corporate objectives. This simplifies and harmonizes processes in a sustainable way. The resulting increase in effectiveness and efficiency not only boosts the employee motivation, it also forms the basis for using future-proof technologies:
The highly complex nature of IT architectures requires banks and asset managers to deal with numerous work processes. To optimize these processes, first they need to be thoroughly examined across systems and divisions.
Capco believes that a complete understanding of process chains and systems, coupled with intelligent data preparation through process mining, will generate substantial added value for banks and asset managers.
Contact us to find out more about opportunities offered by process mining.
Andreas Pfeil, Partner
T +49 69 9760 9106
M +49 17 2165 3932