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.

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

Key Benefits
Area TATs, processing time and servicing time Customer Service Quality and Satisfaction Dependency on physical documents Volumes of transactions handled per day Benefits* More than 70% For both existing & new customers 100% 100%

Return on Investment of 190%#

# Refer Methodology section for details on how Return on Investments (ROI) has been calculated * As per data provided by Newgens 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 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.

Key Challenges
Area Process Related Key Challenges 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 High percentage of erroneous dataexisting application did not support data validation and verification at the time of data entry Difficulty in compliance management and auditing High turn around time for account activationusers were unable to initiate account opening process directly in the core system Delays in customer communicationit used to take 4-5 days to inform customer's of their account activation 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 Low productivitythe 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

Data Related

Customer Service

Document Related

User Related

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The Solution
Based on the bank's requirements, Newgen developed a customized solution, consisting of the following products: OmniFlowTM workflow solution OmniDocs document management solution OmniScanTM (OmniCapture) image capture and indexing solution In the initial phase, Newgen helped the bank automate one of its most critical processes, the Account Opening process. 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. 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.
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TM

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

Endtoend 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 ifelse-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

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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 inbuilt 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

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

# Refer Methodology section for details on how Return on Investments (ROI) has been calculated * As per data provided by Newgens client
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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: Productivity benefits increase in volumes of Hardware and software Implementation and initial license cost, Maintenance and production support User training transactions processed per day 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) 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

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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 Touch 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. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms. 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. Newgens 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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