End-to-End vs. Total Process Workflow
One of the terms we hear thrown around a lot today is “end-to-end” processing. End-to-end has an emphasis on moving information/data from the time of request/application, through credit analysis, approval and ending with the generation of documents and booking the transaction. End-to-end focuses on the executional aspects of data movement. This is typically a technology-centric approach that involves integration across multiple solutions to provide optimal results. I would consider this a “how to” approach.
End-to-end sounds great, doesn’t it? Well, it is, and provides a significant lift for financial institutions, but should this be the ultimate goal? Let’s consider an alternative – what I’d like to call “total process workflow”. This is a workflow and process-centric approach vs. task/transaction approach, IE. supporting the overall process vs. simply “completing the transaction”. The focus here is on long term efficiency and institutionalized effectiveness. The technology should be looked at as a facilitator vs. the answer. I consider this to be the “What, Why, When, If to” approach.
Solutions like Baker Hill’s NextGen®, unlike end-to-end technology, start before the loan application and continue through the life cycle of the relationship. Wouldn’t it be nice if people were lined up outside the door with loan applications in their hands, or in today’s world sending them through an online portal, but that is not reality. Commercial bankers are not just order takers. Likewise, the work doesn’t stop once the loan is booked. Total process workflow solutions start with business development then, instead of stopping at the end of the origination process, continues carry the data through portfolio management and analytics – all the while leveraging the data collected starting from the initial conversation.
Since no one is the expert at everything, integration and interfaces are key success factors for both solutions. Some of these functions are built into the program, like Baker Hill NextGen’s CSI documentation or NADA, while others are push/pull batch processes. One of the most important integrations is the bank’s core system, hence the ability of a system to integrate with every core. Baker Hill NextGen is data agnostic, so the source of the data integrated does not matter (all you need is a common identifier, but that’s a conversation for another day).
As you’re evaluating your solutions and planning for 2019 consider your processes across business units and how a total process workflow solution would improve your productivity.
Posted on October 25th, 2018 at 1:42 pm
With the Right Approach, CECL Implementation Could Mean Current Expected Credit Profit NEXT »
Don’t Let Poor Use of Data Poison Your Financial Institution’s Brand