Process optimisation as part of software upgrades: a strategic opportunity for banks and financial service providers

Software upgrades, which are regularly provided by vendors, sometimes seem like a chore – but they can be much more than that. Such release upgrades, which are necessary to maintain the maintenance contract and technical support, can be used as a platform for transformative process improvements. As part of a release upgrade at a large German online bank, Be showed how weaknesses in the back office processes were identified and efficiently eliminated by modernising the treasury software.

Making a virtue out of necessity – the potential of software upgrades

Release changes need not only be a technical necessity for maintaining the status quo, but can also offer opportunities for improvements:

1. Forced reorientation
   Systems are often operated in existing processes for years without critically scrutinising them. An upgrade forces companies to rethink old structures, examine dependencies and reveal potential for improvement.
2. Optimised system integration
   Modern platforms enable seamless integration into the existing IT landscape thanks to improved interfaces. This reduces media disruptions, minimises redundant entries and creates a basis for consistent end-to-end processes.
3. Automation options
   A software upgrade opens up new technical possibilities for automating processes. This includes standardised workflows, automatic data transfers and the introduction of intelligent control mechanisms.
4. Improved compliance and audit security
   With new technologies, companies can ensure that regulatory requirements are met more efficiently and transparently. Automated checks and logging significantly reduce operational risks.

Standing still is a step backwards – a practical example

A German online bank was faced with modernising its back office module as part of an upgrade to its treasury platform. Originally planned as an IT-only project, the bank decided to use the upgrade with Be’s support to address process weaknesses.

Challenges: The analysis revealed that many of the existing processes were characterised by manual steps, such as duplicate data entries in multiple systems or manual approvals. This led to high operational risks and limited scalability.

Measures: As part of the upgrade, a workflow system was implemented that eliminated redundant tasks and automated centralised approval processes. In addition, interfaces were created to seamlessly transfer data between systems.

Results: The throughput time was reduced, the error rate decreased significantly and the scalability of the processes was increased – a decisive advantage in view of increasing trading volumes.

Good planning is half the battle – strategies for successful process optimisation

To ensure that a software upgrade is not only a technical success, but also an organisational success, we recommend the following measures to our customers:

1. Analyse processes at an early stage
   Before a release change, a detailed analysis of the affected business processes should be carried out. This helps to identify inefficiencies and optimisation potential.
2.  Involvement of the specialist departments
   IT projects often have a purely technical focus. In order to understand the impact on operational processes and achieve sustainable improvements, specialist departments should be involved at an early stage.
3. Piloting and gradual introduction
   By introducing new processes step by step, initial successes can be achieved and potential challenges recognised in good time.
4. Focus on quick wins
   Smaller, easy-to-implement measures, such as the automation of redundant tasks, create quick wins and promote acceptance within the company.
5. Take a long-term perspective
   Even if a software upgrade brings with it short-term challenges, companies should take the opportunity to transform processes sustainably.

Conclusion

Software upgrades are not just IT obligations, but offer a strategic opportunity to optimise processes and future-proof the organisation. Companies that seize this opportunity not only benefit from modern technology, but also from increased efficiency, lower risks and greater competitiveness.

About the author

Pedro Ferreira Sales is responsible for the Business Process Management service portfolio at Be – Shaping the Future, where he contributes his many years of experience as a line and project manager in process management at systemically important banks. His particular focus is on generating concrete and objectively measurable added value through the optimisation of processes.

Photo by Milad Fakurian on Unsplash