Process Flowchart – HOW TO CREATE A PROCESS FLOWCHART FOR A BANKING SERVICE


ISO 9001 process planning with specific
reference to the banking sector is what we’re talking about in this video. We’re
specifically talking about clause 8 and specifically 8.1 of ISO 9001 how that
process flows in the service and transaction part of a bank and the
banking sector stay tuned. So we’ve had a question come through to us here at ask
Best Practice from one of our colleagues that’s following both me on LinkedIn and
also our company page on LinkedIn so if you haven’t found us yet on LinkedIn go
check it out look for Best Practice Certification that’s all this stuff on
our linkedin company page and also look for me my name’s @kobisimmat on
linkedin I will put the handle in the description below if you’ve got any
comments if you’ve got any questions if you want a video like this one then give
us a shout out ask the question and we’ll cover it for you. So we’ve
struggled a little bit with this particular one to understand the angle
that the question is coming from so we’re just going to talk about it from
our perspective Jack’s here behind the camera we’ve been having a chat about
it’s obviously about the banking sector and banking as a customer so I’ll
talk about my experience with the bank is I’m both a commercial customer and
also a private. Now I’ve got subtly different needs in both of those spaces
it just so happens that majority of our commercial banking here in this
particular business is with the same Bank as I am a private customer that
just makes my life a little bit easier but we do use a number of different
banks to do what we do here at Best Practice and also I’ve got a few private
banks that I use, but let’s just talk about it from that perspective and
actually there’s a bunch of people following me on LinkedIn so and I know
there’s a bunch of you that comment on this stuff and you do work for a bank so
this will be relevant for you guys as well and you know who you are. So with
regards to that there’s a few things here obviously one of my biggest issues
one of my biggest risks from my perspective is well it’s my money it’s
my hard-earned cash and that’s me as a private customer, over here in a
commercial sense probably not worried in terms of you know this is my
my whole livelihood over here and I would feel incredibly violated if you
guys lost my money, I’m giving it to you for safekeeping but over here in a
commercial sense I’m not giving you money for safekeeping I’m using you as a
mechanism to transact with my both my staff in terms of you know their
salaries and wages our contractors our suppliers and also the customers, so from
a commercial customer’s perspective as it relates to a bank we’ve got things
like payments coming in and we’ve got obviously payments going out, now what’s
critical for me is that is a lot of work and so as we move we’ll move over the
process flow in a minute but I need this stuff to happen really really quickly
and ideally instantly so my staff they want to be paid instantly my suppliers
they want to be paid instantly so when we’ve done all the processing in our
office and we upload the spreadsheet to our banking portal we want that stuff to
happen straightaway and the facility that we’re provided by our bank that all
happens instantaneously so when we put a credit to one of our suppliers we can
call our suppliers they can check their bank and in most 80% of the situations
and we were talking to our suppliers that stuff’s there straight away. Now
importantly when we do that, the dollar event amount here it’s very important
that it’s the same as the dollar amount over here so we don’t want you guys
clipping the ticket on the way through so we pay you bank fees to make sure
that you’re not you’re not clipping the ticket on the payments. Now we are
talking about a bank were not talking about a credit card, if that transaction
was to be done with a credit card obviously the credit card company takes
a commission on the money that they’re moving on your behalf backwards and
forwards, so we are talking about a bank. So a couple of key things one is
obviously risk wise or swap wise security. Now both in the physical sense
of the numbers that are on our internet banking portal but also internally in
terms of data and accessibility and that sort of stuff so you guys have got some
pretty big IT information security issues there and also the security of
the physical you know currency that sits behind the accounts that sit within
there. Speed is very important in the commercial sense
accuracy over here very very important
our speed maybe not so much for the private customer but security would be
absolutely because it these people here are storing their hard-earned cash the
commercial customers using it for transacting if that makes sense so we
don’t use the bank as the method to store our profits if you like and
that’s done in other high yielding places and investments but they customer for example you know that’s going to be yet to a certain you said they do use
it to operate but I know lots and lots of private customers that all their
money’s in the bank and they don’t have investments. So security speed and
simplicity, so I’m just going to focus on those things with regards to operational
planning, security, speed and simplicity. If you as the banker making the life of
these parties complicated you won’t have them as customers very long now that
might make your life more complicated internally but if you can make it
simple and fast and accurate that’s the majority of what these people are
looking for and certainly I’m giving you my advice as a customer. So let’s go over
here and have a look at a generic process so we obviously got the bank we’ve
got some stuff happening in terms of internal processes it’s pretty generic
but we’ve got obviously from a customer’s perspective we’ve got online
files in terms of online information, we’ve got a component interface with all
the different systems that the banks have, so you might have a little bit of
manual process happening there’s certainly a lot less manual processes
now than they used to be and so we’ve got all these different component
systems that are all part of this service delivery, you know how the
different systems bolt up to each other particularly if you guys are doing other
things so in terms of the transaction time, we all know that some of you guys
float money on the short term currency markets so you might take a day or two
longer than usual to do the transaction it’s pretty common knowledge that a lot
of that money is moved around and that’s how the the banks in transacting you’ve
said well actually we can sort of float we can have this money floating for a
period of time between you know for example if I’m a commercial
customer paying one of my staff there’s something happening in here and everyone
saying why is it taking two days and it’s because you guys are using that
money while you’ve got it in your hand to make more money, so your industry is
about to be significantly disrupted by cryptocurrency because the intention of
cryptocurrency is people are unhappy with what’s happening here and they want
the money to move between themselves so eventually if we want to call this
Bitcoin and Jack and I were just talking about Bitcoin that will replace you over
there because these two parties can transact with a digital currency between
each other and they won’t need you so if you guys really want to disrupt this
particular industry get on board with stopping this and making this stuff
happen really quickly, okay, generically we’re doing file uploads then we’re
loading that in to say for example a bank table, we’re doing reconciliation to
make sure any information from bank A matches bank B and matches us, as funds
are moving backwards and forwards between the banks, because this could be
Bank A over here and this could be Bank B over here, if that makes sense, and this
is you guys in the middle so we got this reconciliation process and then we’ve
obviously got the transaction matching. Now all that for me now as a customer is
all sitting on my portal if you like. All displaying on my portal, now there’s
obviously some manual stuff that used to happen and in some cases it does
obviously happen is we’re obviously managing statements or a journal
and then we got manual transactional inputs. So I send my son off to school
once a week with his little bank book and it’s handwritten information or a
little printed slip that goes into his bank book because he’s banking his
dollar each week of his pocket money and so he’s got the manual transaction
process happening now I’m sure there’s a component interface with it sits behind
that that manages it but it’s still for him a bank book and a manual transaction,
still goes part of the file upload still the movement and in that instance it’s
cash that ends up being deposited and retained and then shown on his little
portal. So I want you guys to be thinking about resource planning
and it’s exactly the same as all the other videos we’ve done recently on
process mapping it’s my five W’s and an H. Let’s just quickly talk in this
scenario about the why with all of this why is this stuff it’s right here it’s
security, speed and simplicity and importantly we want to understand what
can happen emotionally with these parties and there’s one emotion that we
want to be very careful with and that’s that’s the concept of making these
people in this process feel violated absolutely violated. Money is a very
sensitive topic it’s very it’s a very emotional topic and we want to avoid
making them feel violated so when you look at this process and you start to do
something like a SWOT analysis and that’s very very important SWOT,
strengths, weaknesses, opportunities and threats, I’d like to see you start with,
does anything that we do at any of these steps and your process could be
different to this but at any of the steps any of your steps internally in
your organisation do they have the potential to make these stakeholders
feel violated and that’s a good place to start in your weaknesses and your
threats part of your SWOT analysis and obviously there’s other things that you
can do what would make them feel love, joy and surprise, now obviously surprise
if they’ve got more money than they thought they had because you made a
mistake and you gave you deposited with your reconciliation wrong money to wrong
the account of course they’re going to feel surprised, so we do talk a lot about
with SWOT analysis, we talk about violation and you can also have a bit of
fun with this that’s part of this whole process right don’t take it too
seriously because you want to do it regularly, you want to do this SWOT
analysis, risk assessment, process analysis, maybe on a quarterly basis. We
have a joke here Best Practice we call it love, joy, surprise, love, joy and
surprise so what we’re talking about here is, we want to try and avoid people
feeling violated they are our customers and our stakeholders but we
want to elicit particularly love and joy and if you can do security, speed and
simplicity in this instance you’ll elicit definitely love and joy
because people will compare you against the other people and and it’s a pretty
flooded sector, you’re going to get those opportunities. So back to all our other
YouTube videos we we’ve got the WHY, now we’ve got our five W’s and an H, so it’s
what, when, where, who and how it’s our five W’s and an H. What needs to
happen, where does it need to happen, when does it need to happen, who needs to do
it, how are they going to do it to ensure that we’re not making people feel
violated, we’re helping people feel love, joy and surprise as part of this process
and that becomes your plan. So have a practice with it, keep it simple, keep it
really basic, that becomes your operational plan, why, to create these
objectives these promises that we made what are the promises you made to
customers, you know is it commitment consistency, security, speed, simplicity
those sorts of things but you want to think about this, so that’s the checklist,
that’s the process flow, your process might be different, that was just a
generic one we thought we’d talk through, you want to think about your
stakeholders in this instance this is very customer focused from a commercial
customer perspective, private customers perspective and might be some other
stakeholders there’s obviously these other
stakeholders here, there’s the other banks, so we got Bank A as a stakeholder
Bank B, you know the other banks that you’re dealing with as you do your
transactions, they, you know they’re interested in speed, simplicity, maybe
accuracy, you know if you guys are always waiting for you to do stuff then they’re
not going to want to do business with you and it’s going to make life very
difficult for everybody. So that’s been our process flow analysis, operational
planning. It does include some of the risk based thinking parts of the banking
sector and ISO 9001, if you want to see me more videos like this and we’ll have
a crack at your industry, it’s what we do here at Best Practice, reach out to us
comment below the video. If you like this, comment below and give us a shout out
and say you like it give us a like if you’ve got any comments you think we’ve
missed something comment below the video and we’ll come back to you. If you want a
video for your sector happy to shoot that once we get a few people commenting
from the same industry, we put the videos together, give us
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videos that come to you every week from us here Best Practice. If you want some
more great courses that are more in depth from this, go check out our
Training Academy. If you’d like some help going step by step through this standard,
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to apply it to your industry, so go check out the Training Academy, we’ll put the
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at Best Practice TV bye for now.

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