On 11th November 2017, Mr. Midhun Rajagopal addressed the students at TAPMI regarding operations management in financial services. He started the session by giving a brief about his work experience across various companies. He briefly described why operations management is important for financial services, citing examples from his work experience. He said that 80% of the problems that arise in financial firms are related to operations. He listed out three different cases of operations management playing a major role in financial services from his work experience and promised to walk the students through the same sequentially.
The first example he quoted was the process transformation journey for a large global bank. He mentioned the problem statement for this client, which was to reduce its operational and technological costs. He gave a brief of the methodology followed, which included re-engineering the process, defining process hierarchy, standardizing process across all geographies and mapping detailed end to end target state process for all functions of the bank. He then explained the outcomes of these processes, few of which were mapping 1600 activities across all functions, standardizing process across 29 countries with 80% commonality, reduction of operational and technological costs by 27% etc. He mentioned the key operations concepts used in this project which was access mapping, business process re-engineering, process standardization and to be mapping.
He then moved on to the next project which was to enhance customer service guarantee for a leading Indian NBFC. The problem statement here was to increase its market share in lending business by offering supreme customer experience through faster and transparent loans processing. He briefly explained the methodology followed, which included redesigning the loans processing flow, developing a BPM workflow solution, developing a comprehensive MIS for management reporting, supporting the client to roll-out the revamped process in key branches, training the staff and ensuring process adherence. He then listed out the benefits due to this process which was standardized process flow, better oversight of branch operations and enhanced customer experience.
The third example mentioned was to optimize client due diligence for a multinational bank. Moving on to the methodology he briefly explained the “as is CDD (Customer due diligence) process” and “To be CDD process”. He then listed out the benefits received through this process, few of them were: Standardized screening process, FTE reduction, reduced vendor licenses, reduced training costs, reduced screening touch time and improved screening quality. He listed out the key operations concepts used in this process, which were capacity planning, functional specialization, touch time reduction and stakeholder management.
The enriching session ended with Mr. Rajagopal engaging the students in an interesting Q&A session which facilitated a healthy flow of ideas.