Banking Process Flow

What is Banking Process Flow? The below diagram explains Banking Process Flow. This chart shows an important concept or a framework to help one run their business, improve company's strategy, internal processs, enhance project management, technology, and client experience.

Banking Process Flow Chart

Banking Process Flow is a sequence of steps that a bank follows to complete a banking transaction. The process flow may vary depending on the type of transaction, but it generally involves the following steps:

1. Customer Onboarding: This step involves gathering and verifying customer information. Legacy banking institutions depend on manual methods for this process, while modernized banks gather customer information through websites, mobile, and third-party platforms. Know your customer (KYC) verification is an important part of the customer onboarding process. Owing to the rise in online fraud and financial terrorism, banks have made the KYC process mandatory. Anti-money laundering checks are also mandatory in customer onboarding.

2. Loan Processing: This step involves processing loans from loan origination to disbursement. Legacy banking systems process loans manually, which entails tons of paperwork, inordinate delays in approvals and verification, unexplained bottlenecks, increased scope for fraud, and multiple rejections and re-applications. Modern banks need to have speedy and efficient loan processing systems that can handle huge volumes of loan originations across multiple platforms.

3. Credit Card Processing: This step involves capturing accurate data across multiple banking channels and real-time updation of bank records. When done manually, credit card processing not only takes time and effort but is also prone to errors and inconsistencies. Automated credit and debit card processing cuts down significantly on the cost and time of processing and ensures 100% accuracy.

4. Core Banking Operations: This step includes all the back-end updates in the banking industry. These processes include customer data updates, KYC validations, accounting reconciliations, and overdraft protection. BPM software automates important banking process workflows like account opening, KYC verification, loan processing, and compliance management. BPM in banking helps in the resolution of issues in banking services and creates a flexible environment for process improvement .