Finance Sector Squandering Massive Potential According to a Recent Study

80 percent of decision-makers in the finance sector are losing out on the benefits of analyzing and optimizing their business processes using process mining due to a lack of knowledge on the subject

Celonis, the market leader in AI-supported process mining and process excellence software, has summarized the results of its study¹ on the subject of process mining in the finance sector. One sobering finding from the survey was that about one third of the budget managers at banks and insurance companies in Germany questioned know nothing about process mining. This means that these companies are squandering the opportunity to record, analyze, and optimize business processes with the aid of this innovative approach and the associated solutions.

This is concerning in light of the difficult business environment in which the majority of these companies operate and the challenges that institutes are currently facing. Process mining has demonstrably been shown to result in significant business benefits. Financial service providers that deploy process mining solutions achieve up to 14 percent lower process costs and 18 percent higher productivity. According to the study, further advantages include greater transparency for processes and quicker, more efficient collaboration between departments. These factors are especially important for banks and insurance companies who want to expand their range of services to include digital offers. An effective digital strategy is indispensable these days, as the successes of direct banks and fintech companies in the banking sector, as well as insurance technology companies go to show. Thanks to progressive digitalization throughout the entire finance sector, German-end customers who are otherwise rather traditional have since developed greater expectations when it comes to digital services from service providers.

Bearing this in mind, it’s worth considering that merely one fifth of managers at finance service providers recognize the potential of process mining according to Celonis’ study. This lack of awareness is also why the majority of companies have not deemed it necessary to implement a process mining solution to date. “These companies are depriving themselves of the opportunity to bolster their competitiveness and assert themselves on a market that is defined by ever greater cost pressure and more aggressive competition,” says Christian Brüseke, Sales Director Financial & Public Services DACH at Celonis. “The experiences of our customers from the finance sector emphatically prove that considerable efficiency gains, increased customer satisfaction, and cost reductions can be achieved with the aid of process mining.”

Case studies – how process mining pays off

One example is a leading German insurance company from the vehicle insurance sector. Thanks to the solution from Celonis, it was able to considerably boost its service quality within three months. This reduced the examination and processing time for claims from 26 to 21 days. One of the largest European universal banks in turn is now able to process credit applications four times faster than before thanks to process optimization. Not only that, but the company improved its throughput time in the retail payment process by 30 percent within just six months.

How the finance sector benefits from process mining

“A finance service provider that doesn’t have its processes under control puts a lot at risk – which means unnecessary friction losses, dissatisfied customers, and higher costs due to inefficient workflows,” stresses Christian Brüseke, Sales Director Financial & Public Services DACH. This has become all the more acute as it is assumed that the coronavirus situation will lead to the demand for improved efficiency and customer satisfaction increasing. “The pressure to make processes easier, more streamlined, and more effective will continue to exist in the finance sector. Process mining can support finance companies in mitigating this challenge.”

About Celonis

Celonis – the leading provider of process mining and process excellence software – transforms data into insights and measures. Its Intelligent Business Cloud allows companies to rapidly understand and improve their operational backbone. Companies across the globe – including Siemens, 3M, Airbus, and Vodafone – rely on Celonis in enacting measures and driving forward changes in business processes, resulting in cost savings worth millions and an improved customer experience. The company is based in Munich and New York.

Note on the Study

Celonis commissioned the market research and polling company Civey to carry out its study. About 600 budget managers at financial service providers and insurance companies in Germany were surveyed between December 2019 and January 2020.