Strategies to Improve Financial Institutions’ Operations, Processes

As the financial services sector evolves rapidly, financial institutions need a strategic compass to navigate the industry's complexities and identify the most effective path to success.

While strategic planning may come to mind, it provides a broader vision and long-term goals. A more feasible option is a business opportunity assessment (BOA), providing a comprehensive review of an institution's functional areas, identifying strengths and weaknesses, and suggesting effective changes aligned with an overall strategy that can be implemented immediately.

A BOA is a thorough process involving document review, interviews with key team members, and an analysis of the current and future desired state.

Learn what a BOA involves and how your financial institution could benefit.

What does a business opportunity assessment entail?

Key components of a BOA include assessing structure, process, and systems to identify recommendations aligned with your vision and strategy.

Structure assessment

Structure assessment reviews your financial institution's staffing structure to make sure it’s consistent with strategic objectives.

Questions related to structure include:

• Do we have the right team in place to meet strategic goals and operational needs?
• What are other similar institutions doing? How do we compare in terms of efficiency and innovation?
• How well does the current organizational structure align with our strategic goals, performance, and sustainability?

Sample BOA recommendation:

• Reorganize staff to make processes more efficient, boost communication, and encourage collaboration across different departments.

Structure assessment example for financial institutions

You oversee your institution’s IT department and receive frequent feedback about backlogs and delays in IT support services. A BOA determines your institution’s IT needs exceed your current IT staff capabilities.

The decision is made to enhance responsibilities within an existing role to delegate IT tasks and to hire a project manager to oversee projects, review requests, and collaborate with other departments.

These changes improve service delivery, enable IT staff to concentrate on their tasks, and reduce the potential for employee burnout.

Process assessment

Process assessment examines existing procedures to find opportunities for enhancing effectiveness and oversight.

Questions related to process include:

• Why does it take so long to receive financial reports? Is there a way to streamline this process?
• Are we operating in the most efficient way? What processes can be improved or automated?
• How can we boost efficiency, enhance control, and foster innovation within our institution’s operations?

Sample BOA recommendation:

• Automate manual processes to enhance efficiency, reduce time spent on repetitive tasks, and boost overall productivity.

Process assessment example for financial institutions

You oversee your institution’s lending department and notice the loan application process is confusing and time-consuming. A BOA determines the loan application process involves multiple forms and requires applicants to provide the same information multiple times, leading to frustration and a high abandonment rate.

The institution decides to implement a new loan application process streamlining the forms, reducing the required information, and providing clear instructions and guidance throughout the process.

This change improves the applicant experience, reduces application time, and increases the number of completed applications.

System assessment

System assessment reviews the systems in place and determines if they’re the right fit for the institution's needs.

Questions related to systems include:

• Why can't we get good financial and business management information? How can we improve the information’s quality and accessibility?
• Do we have the right systems in place to support the institution? Are our current systems scalable and adaptable to future needs?
• Are we leveraging forward-looking technology tools to their fullest potential to create a sustainable, continuous improvement plan?

Sample BOA recommendation:

• Implement a new system tailored to the institution’s needs to improve operating efficiency and effectiveness.

Process assessment example for financial institutions

You oversee your institution’s accounting department and notice generating financial reports is time-consuming and error prone. A BOA determines the current accounting software is outdated and can’t automate or streamline report generation.

As a result, you investigate new accounting software to meet your defined requirements, provide the necessary integration, and support strategic goals.

The new software enhances the speed and precision of generating reports, thereby boosting overall productivity and operational efficiency.

How CLA can help financial institutions assess operations

Business opportunity assessments provide insights, recommendations, and an actionable strategy formulated from strong practices to help your financial institution create a prioritized plan — complete with a schedule, necessary resources, and leadership oversight to steer implementation.

BOAs aren’t just assessments — they’re change catalysts, innovation roadmaps, and strategic growth frameworks that can be conducted annually, biennially, or at strategic points when your institution is poised for transformation or facing significant challenges.

Reach out to see how CLA can perform a customized business opportunity assessment to help transform your structure, operational processes, and systems to better serve your financial institution.

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