Digital transformation: re-imagining the wire transfer in 3 days

Over time we learn to accept things; our baselines shift. That holds true for business transactions too, from the very simple to the very complex, and there are hundreds of them in every organization. Accepting a process's performance allows inefficiency to persist, draining resources. This is the story of a common one: wire transfers.

Our client was growing fast. We were given three days to solve three challenges: re-imagine the transaction so it could scale, use available technology to make it efficient, and enhance the client experience. We began by understanding the current state: interviewing subject-matter experts, collecting operational and financial data, and mapping the detailed steps of the transaction.

What we discovered

• The actual cost of a wire transfer was nearly 3× the fee invoiced to the customer
• 10 systems were updated nearly 40 times to complete a transaction
• 150 steps and 3 departments were needed to complete it
• 90% of transactions required client re-contact or rework
• 20% of customers contacted the institution to check their request had been received

So why is such a common, high-volume transaction riddled with risk and inefficiency? Process.

• Systems are not well integrated, so processors manually transfer data and control its quality.
• Historical hiccups create complexity. With every past issue or loss, the company added steps and layers, not all of which addressed the issue.
• Nobody looked at the process like an engineer. Uncovering issues takes protocols and data analysis; without them, only incremental improvements are found.

Who cares if the process is inefficient?

Process steps, manual controls, forms, emails and calls all create white noise. White noise increases risk and cost, and takes processors' attention away from real value-creating work.

The attainable solution

Simplification, automation and scalability. To get there we used RPA, workflow and smart business rule engines, freeing the department to focus on its one value-creating step: gauging and mitigating risk. A smart form at the point of request validates and compiles all the required data before it reaches operations, and a workflow system with RPA and supporting business rules eliminates hidden costs and touchpoints while keeping high-risk requests visible.

The targeted results of the re-imagined process:

• 90% reduction in the cost of the transaction
• 85% reduction in the number of processing steps
• Elimination of client re-contact for clarification or missing information
• 90% reduction in processing cycle time

Reviewing everyday transactions can uncover substantial efficiencies, better returns, more capacity and a better customer experience. Which processes in your organization need a closer look?