R&D metamorphosis within operations division of the banking industry - by Ashwin Baburaj

R&D metamorphosis within operations division of the banking industry

by Ashwin Baburaj

The biggest gambling an operations team does, within a banking space, is the dependency of itself on the knowledge of its analyst. The analyst is responsible for making the user experience a better one, and most of these practices in the industry have been done without the complete understanding about the process or flow.

This tends to create a huge gap of knowledge regarding the organization’s own processes and makes it difficult for the analyst to adjust with the ever-changing scenario within the banking world. There seems to be a dilemma in doing the process within the different operations teams because the actual purpose of doing it could come with several doubts from each analyst on the floor. For example, when there is a newly introduced process into the banking industry, then there is a risk of the process not working. In some cases, the process does not have any relation to the actual goal of the process. Processors usually do not like to change the way things are working. This would not be considered as a drawback all the time, as every change made in the operations sector relating to process modification is said to have an impact on customer service. This is where the R&D metamorphosis within the operations division is necessary within a banking spectrum.

Currently there is no designated R&D division under supervision within the different operations divisions. An R&D division within its department of operations (CPB, SSO, PBB etc.,) may have the following issues:

• Scattered information between different teams within the same division and using the same tools for the beginning and end process. There is no complied data for these teams and thus, the information is scattered and limited.

• Improper interpretation of SOPs (Standard Operating Procedures) by the trainer will be continuously followed by the people who will be doing the process later. • Process knowledge gap between different analysts on the team and their level of understanding of the subject. • Slow pace of improvement ideas within the different teams under a department. • Slower implementation of outsourced processes and its higher chances of failure in real world scenario.

• Extensive reliability for idea generation and process implementation in other departments (Example: process management and technology).

These teams could be made more effective if there is an existing R&D division for the operations team. This team would provide information about what is required to be changed in the existing process, rather than these process management and technology teams taking an initiative and potentially making changes in the process. This reduces dependency on other departments.

All these above-mentioned scenarios could lead to larger exposure towards banking errors and risk too; thus, to mitigate these risks it is certainly important to have an R&D unit established under each department of operations. Doing so will have the following changes:

• All the scattered information between teams from the beginning stage of the process to the end process could be combined and different error scenarios could be studied for future references.

• The R&D unit would provide proper training sessions to all the team members such that they all remain on the same page regarding the flow of the process and its usage and checks.

• Process knowledge gap ultimately decreases, and analysts learn to absorb the purpose of the process in the first place.

• More improvement ideas could be implemented if the gap in knowledge regarding processes decrease. A detailed study of this could also be kept for future reference and study by the upcoming analyst.

• The risk factors related to the failure of outsourced process or its implementation or its effects could be studied and then successfully implemented for the better working of the teams.

• An established R&D unit would give a wider learning experience and deeper understanding about the risk elements involved in pushing the different layers of the department within the banking industry. These would be studies, and instant solutions would be recommended for implementation and mitigation of risk arising within departments. Thus, they will indirectly help in providing more advanced customer experiences than expected.

Having an R&D unit within the banking industry for each operational department could bring in additional value to the banking system as a whole and ultimately help in speeding up the automation processes. These units must evolve with the ever-changing conditions of the banking industry across the world to improve itself while remaining up-to-date with current industrial standards and practices.

author Ashwin Baburaj

Student (Post Baccalaureate Diploma in Business Management) – Cape Breton University Former Senior Analyst – Royal Bank of Scotland Former Employee – BestBuy, Canada International Finalist PRMIA case study competition 2021