Process Flowchart - HOW TO CREATE A PROCESS FLOWCHART FOR A BANKING SERVICE Video Lecture | ISO 9001 (Quality Management): Achieve Business Excellence - Management

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
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