Nowadays, Digital Transformation and Automation of repetitive tasks to improve and optimize processes within corporates and firms are trending topics, with the banking sector making no exception. In this sense, a multidisciplinary knowledge is needed in order to able to study and understand which processes within the state of the art can be enhanced through digital transformation and which tasks, and how, can eventually be automated. For what concerns the banking industry, since the 2008 financial crisis, the focus on institutions customer practices and regulatory compliance performance has been stressed like never before. Nether less, a compliance failure can result in litigation, financial penalties, regulatory constraints and reputational damage that can strategically affect an organization. Within the banking sector, the regulatory compliance is a very wide and complex process involving many people at multiple levels within the enterprise. This extensive involvement brings numerous time and money consuming bottlenecks difficult to monitor and recognize due to the bad governance that manages the process: the various employees of the group work independently on their individual tasks communicating via email and making it difficult to monitor both the state of the art and the big picture together with controlling that no errors are occurring. Moreover, due to the continues new regulations coming from multiple entities and institution, banks need to stay as up-to-date as possible in the shortest possible time in the most accurate way. In our thesis, we propose a transformer-based approach to the Regulatory Compliance by firstly standardizing and digitalizing the whole process with the use of intelligent Business Process Management tools, secondly, after the identification of those repetitive tasks, the implementation of RPA and Machine Learning software are used to automatize those steps where no added value can be brought by the bank employers. As a result, the Regulatory Compliance took less time, with less resources and with more accuracy. Finally, thanks to the newly created digital infrastructure, Process Mining has been used to identify bottlenecks, have a better understanding of the processes KPIs and identify future improvements to implement.
Al giorno d'oggi, la trasformazione digitale e l'automazione di attività ripetitive per migliorare e ottimizzare i processi all'interno di aziende e società sono argomenti di tendenza, e il settore bancario non fa eccezione. In questo senso, è necessaria una conoscenza multidisciplinare per poter studiare e capire quali processi, allo stato dell'arte, possono essere migliorati attraverso la trasformazione digitale e quali compiti, e come, possono essere automatizzati. Per quanto riguarda il settore bancario, a partire dalla crisi finanziaria del 2008, l'attenzione alle pratiche degli istituti nei confronti dei clienti e alle prestazioni di conformità alle normative è stata accentuata come mai prima d'ora. Non di meno, una mancata conformità può comportare controversie, sanzioni finanziarie, vincoli normativi e danni alla reputazione che possono influenzare strategicamente un'organizzazione. Nel settore bancario, la conformità normativa è un processo molto ampio e complesso che coinvolge molte persone a più livelli all'interno dell'azienda. Questo ampio coinvolgimento comporta numerosi colli di bottiglia che richiedono tempo e denaro, difficili da monitorare e riconoscere a causa della cattiva governance che gestisce il processo: i vari dipendenti del gruppo lavorano in modo indipendente sui propri compiti individuali comunicando via e-mail e rendendo difficile monitorare sia lo stato dell'arte che il quadro generale, oltre a controllare che non si verifichino errori. Inoltre, a causa delle continue nuove normative provenienti da molteplici enti e istituzioni, le banche hanno bisogno di rimanere aggiornate nel minor tempo possibile e nel modo più accurato possibile. Nella nostra tesi, proponiamo un approccio digitale alla Regulatory Compliance: in primo luogo, standardizziamo e digitalizziamo l'intero processo con l'uso di strumenti intelligenti di Business Process Management; in secondo luogo, dopo aver identificato i compiti ripetitivi, utilizziamo l'implementazione di software RPA e Machine Learning per automatizzare le fasi in cui i dipendenti della banca non possono apportare alcun valore aggiunto. Di conseguenza, la Regulatory Compliance ha richiesto meno tempo, meno risorse e più precisione. Infine, grazie alla nuova infrastruttura digitale, abbiamo sfruttato il Process Mining per identificare i colli di bottiglia nei processi, avere una migliore comprensione dei KPI dei processi e identificare i futuri miglioramenti da implementare.
Digitalization and automation of the Regulatory Compliance within the banking sector
Casarico, Massimo
2021/2022
Abstract
Nowadays, Digital Transformation and Automation of repetitive tasks to improve and optimize processes within corporates and firms are trending topics, with the banking sector making no exception. In this sense, a multidisciplinary knowledge is needed in order to able to study and understand which processes within the state of the art can be enhanced through digital transformation and which tasks, and how, can eventually be automated. For what concerns the banking industry, since the 2008 financial crisis, the focus on institutions customer practices and regulatory compliance performance has been stressed like never before. Nether less, a compliance failure can result in litigation, financial penalties, regulatory constraints and reputational damage that can strategically affect an organization. Within the banking sector, the regulatory compliance is a very wide and complex process involving many people at multiple levels within the enterprise. This extensive involvement brings numerous time and money consuming bottlenecks difficult to monitor and recognize due to the bad governance that manages the process: the various employees of the group work independently on their individual tasks communicating via email and making it difficult to monitor both the state of the art and the big picture together with controlling that no errors are occurring. Moreover, due to the continues new regulations coming from multiple entities and institution, banks need to stay as up-to-date as possible in the shortest possible time in the most accurate way. In our thesis, we propose a transformer-based approach to the Regulatory Compliance by firstly standardizing and digitalizing the whole process with the use of intelligent Business Process Management tools, secondly, after the identification of those repetitive tasks, the implementation of RPA and Machine Learning software are used to automatize those steps where no added value can be brought by the bank employers. As a result, the Regulatory Compliance took less time, with less resources and with more accuracy. Finally, thanks to the newly created digital infrastructure, Process Mining has been used to identify bottlenecks, have a better understanding of the processes KPIs and identify future improvements to implement.| File | Dimensione | Formato | |
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Descrizione: Digitalization and automation of the Regulatory Compliance within the banking sector. Executive Summary and Thesis.
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https://hdl.handle.net/10589/190032