Transforming Finance and Accounting
with Process Excellence
Deploying Low-Cost Process Excellence Techniques, Levreg Transforms the Finance and Accounting Back Office of this Regional Bank
A mid-sized regional bank was facing significant challenges in its finance and accounting back office operations. Manual processes, outdated technologies, and a lack of checks and balances led to inefficiencies, increased operational costs, and potential areas for internal and external fraud.
To address these issues, we embarked on a comprehensive process transformation initiative, leveraging process mapping and digital twin technology to identify redundancies, inefficiencies, and areas prone to fraud.
The outcomes we achieved led to streamlined operations, optimized processes, and enhanced security.
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Challenges
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Before the transformation, the Bank's finance and accounting back office encountered several challenges:
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1. Redundant Processes: Multiple redundant processes caused delays and increased the risk of errors.
2. Inefficiencies: Manual data entry and paper-based workflows led to inefficiencies and longer processing times.
3. Tech Waste: Several outdated and underutilized technologies increased operational costs without adding value.
4. Fraud Risks: The lack of robust checks and balances and segregation of duties made the bank vulnerable to fraud.
5. High Operational Costs: Inefficient processes and redundant technologies inflated operating expenses.
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The Levreg Solution
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1. Process Mapping and Digital Twin Implementation: we assisted the bank in creating a digital twin of its finance and accounting operations, allowing for a detailed process mapping exercise. This digital replica enabled the bank to visualize and analyze its workflows in real time, identifying redundancies, inefficiencies, and potential fraud areas.
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2. Identification of Redundancies and Inefficiencies: The digital twin technology revealed multiple redundant steps in the finance and accounting processes. By eliminating these redundancies, the bank streamlined operations and reduced the risk of errors. Inefficient manual processes were identified, updated, and where possible, automated, significantly improving processing times.
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3. Tech Waste Reduction: The process mapping exercise highlighted several outdated and underutilized technologies. We assisted the Bank in planning and executing the decommissioning of these technologies, reducing maintenance costs and operational overhead. The bank invested in more productive and efficient technologies to support its transformed processes.
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4. Implementation of Checks and Balances: Robust checks and balances were implemented to enhance security and reduce the risk of fraud. Segregation of duties was enforced to ensure that no single employee had control over all aspects of financial transactions, minimizing the potential for internal fraud.
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Outcomes
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The process transformation yielded exceptional results across various metrics:
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1. Streamlined Operations: By eliminating redundant processes and automating manual tasks, this regional bank reduced processing times by 40%. The average time to complete finance and accounting tasks decreased from 5 days to 3 days, leading to faster financial reporting and improved decision-making.
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2. Optimized Processes: The optimization of processes led to a 38% increase in overall operational efficiency. Employees were now able to focus on more strategic tasks, resulting in a 22% increase in productivity.
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3. Reduced Operational Costs: The decommissioning of outdated and underutilized technologies and the implementation of more efficient systems led to a 17% reduction in operational costs. Additionally, the bank saved approximately $500,000 annually in maintenance and operational expenses.
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4. Enhanced Security and Fraud Prevention: The implementation of robust checks and balances and segregation of duties significantly reduced the risk of fraud. The bank reported a 50% decrease in fraud-related incidents, saving approximately $200,000 annually in fraud losses as well as potential fines, MRAs, and other regulatory penalties.
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5. Improved Employee Morale: The process transformation improved employee morale by reducing the burden of manual tasks and enabling them to focus on more value-added activities. Employee satisfaction scores increased by 9%, leading to a more engaged and motivated workforce.
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6. Better Compliance and Reporting: The streamlined processes and enhanced checks and balances ensured better compliance with regulatory requirements. The accuracy of financial reporting improved by 38%, reducing the risk of regulatory fines and penalties.
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7. Enhanced Customer Satisfaction: Faster processing times and improved accuracy in financial reporting led to enhanced customer satisfaction. Customer satisfaction scores increased by 18%, contributing to stronger customer loyalty and retention.
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Our client's process transformation through the implementation of process mapping, digital twin technology, and technological optimization resulted in significant improvements across various metrics. The bank successfully streamlined operations, optimized processes, reduced operational costs, and enhanced security and fraud prevention.
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By partnering with Levreg to embrace innovative technologies and focusing on low-cost solutions to enhance efficiency, our client increased their ability to manage growth without adding additional complexity or operating costs, and significantly reduced their exposure to potential fraud.
