01.11.2017

3 Reasons for Decision Management in the Financial Industry by James Taylor

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James Taylor is a book author and a leading authority in decision management. During his visit to ACTICO, he shared some interesting insights that we would not want to withhold. Watch the video or read three top reasons for decision management in the financial industry.

Of course, there are more than three reasons for decision management. In the video, James Taylor highlights three aspects of particular interest to the financial and insurance industry.

Increase Transparency & Improve Agility

Transparency and traceability are key requirements, especially in the financial industry. In advisory processes, for example, banks must prove that the financial products offered match the risk profile of the customer (“suitability“). These include personal risk appetite, investment experience and investment objectives.

Decision Management helps banks to ensure transparency and compliance. Because it relies on graphical models to illustrate operational decisions (such as age checks, risk assessments, etc.). Based on the graphic models, the decision-making process is easy to understand – even for non-technical people from the business departments. This in turn allows for greater agility. If required, subject matter experts without programming knowledge can quickly and safely make changes to the models.

DMN models clearly show how decisions are made.

Operationalize Results from Analytics

Analytics is an ongoing topic in banking and insurance. From analysis of their gigantic data pools, the institutes hope to gain new insights into customers and the market. In practice, however, companies often face the difficulty of implementing these insights in their day-to-day business.

Decision management is an effective way to operationalize analytics results. Because the underlying decision models clearly show how the decision is made (see figure above). That means: which systems (or roles) are involved in a decision? Which data is used? Which decisions have to be made in advance? New findings are thus transferred to the day-to-day business by optimizing decision models. This can be, for example, the adjustment of a pricing table or the addition of an age check at the account opening.

Improve Digital Interactions & Customer Dialogues

Media breaks and impersonal customer dialogues are still a reality for many banks and insurers. But customers are frustrated when the settlement of an insurance claim is accompanied by paper forms, scans and correspondence by post. Or if the loan application is made online, but the settlement by post.

Decision management in the financial industry allows banks and insurance companies to create truly digital, end-to-end interactions. Personalization, localization or targeting enable needs-based and accurate dialogues at the point of contact with the customer. For example, if a customer updates their place of residence in online banking, the system suggests a loan for the interior. If a region is affected by severe weather over a large area, the insurer temporarily simplifies claims settlement in order to process losses more efficiently All these are real examples and reasons for decision management at banks and insurers. If you would like to discuss your application, our experts are at your disposal.

If you want to learn more about decision management in the financial industry, you can find some interesting links below, or you can contact our experts.

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