Case Studies Rethinking Banking in the 21St Century

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	Rethinking Banking in the 21St Century

Rethinking Banking in the 21St Century

Technology Category	Analytics & Modeling - Process Analytics Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Industries	Finance & Insurance
Applicable Functions	Business Operation Quality Assurance
Use Cases	Predictive Maintenance Process Control & Optimization
Services	System Integration Training
Challenge	Times have not been easy for Russian banks in the last years, during which customer expectations have changed and posed massive challenges to the core business of financial institutions. This is even more true for the second-largest Russian bank, VTB, which has its roots in the Soviet era and not only faces new market circumstances but also has to fight with historical legacies such as inefficient processes. The first step to move to a process-owned organization and become more customer-focused was the creation of the Process Excellence Center in 2014. The department is highly visible within the bank and reports directly to the board. While the goal was clear and supported by top management, the question of how to achieve process transparency and efficiency was not. It was the IT consulting company Ramax who introduced so-called process mining to VTB in September 2015. Read More
About Customer	VTB is the second-largest bank in Russia, with its roots tracing back to the Soviet era. The bank has a significant presence in the Russian financial market, with a turnover of 415 billion RUB and a workforce of 104,000 employees. VTB has been facing challenges due to changing customer expectations and historical inefficiencies in its processes. To address these issues, VTB established the Process Excellence Center in 2014, which reports directly to the board and aims to make the bank more customer-focused and process-oriented. The bank's commitment to improving its operations and customer service is evident in its adoption of advanced technologies and methodologies, such as process mining, to enhance transparency and efficiency. Read More
Solution	Ramax introduced process mining to VTB in September 2015, starting with the academic software ProM to visualize the bank’s digital footprints. After extensive market research, VTB decided to purchase Celonis Process Mining in September 2016. Ramax was given a three-year mandate to analyze core and support processes and drive the corporate transformation. The initial focus was on retail products sold in branches across the country, such as banking accounts, credit cards, deposits, loans, and insurances. Ramax extracted relevant data from Siebel CRM, created an event log, set up the data model, worked on dashboards containing process flows and KPIs, and trained VTB staff to use the software. Within three months, the project was executed from scoping to training and official handover. VTB could now follow all activities linked to a customer’s Application ID in the source system, improving transparency and efficiency in service delivery. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Process Analytics

Functional Applications - Enterprise Resource Planning Systems (ERP)

Applicable Industries

Finance & Insurance

Applicable Functions

Business Operation

Quality Assurance

Use Cases

Predictive Maintenance

Process Control & Optimization

Services

System Integration

Training

Challenge

Times have not been easy for Russian banks in the last years, during which customer expectations have changed and posed massive challenges to the core business of financial institutions. This is even more true for the second-largest Russian bank, VTB, which has its roots in the Soviet era and not only faces new market circumstances but also has to fight with historical legacies such as inefficient processes. The first step to move to a process-owned organization and become more customer-focused was the creation of the Process Excellence Center in 2014. The department is highly visible within the bank and reports directly to the board. While the goal was clear and supported by top management, the question of how to achieve process transparency and efficiency was not. It was the IT consulting company Ramax who introduced so-called process mining to VTB in September 2015.

About Customer

VTB is the second-largest bank in Russia, with its roots tracing back to the Soviet era. The bank has a significant presence in the Russian financial market, with a turnover of 415 billion RUB and a workforce of 104,000 employees. VTB has been facing challenges due to changing customer expectations and historical inefficiencies in its processes. To address these issues, VTB established the Process Excellence Center in 2014, which reports directly to the board and aims to make the bank more customer-focused and process-oriented. The bank's commitment to improving its operations and customer service is evident in its adoption of advanced technologies and methodologies, such as process mining, to enhance transparency and efficiency.

Solution

Ramax introduced process mining to VTB in September 2015, starting with the academic software ProM to visualize the bank’s digital footprints. After extensive market research, VTB decided to purchase Celonis Process Mining in September 2016. Ramax was given a three-year mandate to analyze core and support processes and drive the corporate transformation. The initial focus was on retail products sold in branches across the country, such as banking accounts, credit cards, deposits, loans, and insurances. Ramax extracted relevant data from Siebel CRM, created an event log, set up the data model, worked on dashboards containing process flows and KPIs, and trained VTB staff to use the software. Within three months, the project was executed from scoping to training and official handover. VTB could now follow all activities linked to a customer’s Application ID in the source system, improving transparency and efficiency in service delivery.

Impact #1	VTB was able to follow all activities of a customer linked to its Application ID in the source system, improving transparency and efficiency in service delivery.
Impact #2	The credit process, which involves many people and systems, saw immediate effects, particularly in employee performance.
Impact #3	VTB identified cases where service delivery time was significantly higher than the company average, leading to targeted training for employees.

Impact #1

VTB was able to follow all activities of a customer linked to its Application ID in the source system, improving transparency and efficiency in service delivery.

Impact #2

The credit process, which involves many people and systems, saw immediate effects, particularly in employee performance.

Impact #3

VTB identified cases where service delivery time was significantly higher than the company average, leading to targeted training for employees.

Benefit #1	Within six months, VTB improved the throughput time in the retail process by 30%.
Benefit #2	Before analyzing the process with Celonis, only 13% of accounts were opened within three hours, and only 65% of accounts were handled on time. After implementation, 98% of accounts opened on time.
Benefit #3	Loan application processing time decreased fourfold.

Benefit #1

Within six months, VTB improved the throughput time in the retail process by 30%.

Benefit #2

Before analyzing the process with Celonis, only 13% of accounts were opened within three hours, and only 65% of accounts were handled on time. After implementation, 98% of accounts opened on time.

Benefit #3

Loan application processing time decreased fourfold.

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Overview

Rethinking Banking in the 21St Century

Operational Impact

Quantitative Benefit