Bank Julius Baer Achieves Enterprise-Wide Efficiency and Governance with Flowable

Last year, Oxford Economics and LexisNexis Risk Solutions found that financial crime compliance (FCC) costs have risen by 19% since 2020. Total costs in the UK financial services sector, for instance, now stand at £34.2bn per annum or around £194m per bank. The expectation is that costs will rise by a further 8% over the next three years.

Subsequently, banks need cost-effective governance solutions; moreover, these solutions must be fit for purpose. They must improve visibility into processes, drive productivity, and improve customer experience. As a leading Business Process Management (BPM) platform, Flowable is well-positioned to meet this demand. Flowable empowers organizations to automate and orchestrate complex business processes, increasing efficiency and agility.

In their presentation at FlowFest24, Thressiya Pazhedathuparambil, IT Project Manager, and Simon Wyss, Head of Global Shared Services, both from Bank Julius Baer, shared insights into their successful implementation of Flowable. Their experience provides a compelling case study for how a large financial institution can leverage low-code and pro-code to drive digital transformation and achieve enterprise-wide efficiency, all with rigorous governance measures.

Unity, flexibility, and stability in one package

Julius Baer is a renowned Swiss private bank with a history dating back to 1890. Focusing on building long-term relationships and highly personalized financial management, Julius Baer has earned a reputation as a trusted partner for high-net-worth individuals and families around the globe.

Despite the bank’s relatively niche market, Julius Baer faces challenges similar to those faced by other financial institutions today. Increasing regulatory requirements, evolving customer expectations, and competitive pressures demand efficiency and agility. For Bank Julius Baer, the appeal of BPM stemmed from a need to address several of these key challenges.

As highlighted during the talk, while small, siloed solutions might seem cheaper and quicker to implement in the short term, they ultimately become very expensive due to individual licensing contracts, redundant capabilities, and maintenance costs. Moreover, the bank would have to deal with a "nightmare of different technologies" and a "control frenzy" for governance due to siloed solutions for individual business problems. This situation would likely lead to inefficiencies, a lack of process visibility, and potential compliance issues.

This bank needed a unified solution to streamline processes across different domains, from marketing campaign management to client review assessments and transaction processing. Moreover, Bank Julius Baer recognized the critical importance of BPM governance, particularly in a highly regulated industry like banking. Centralized control and standardization of processes were essential to ensure consistency, reduce operational costs, and maintain compliance with industry regulations. This is where Flowable, orchestrated by the newly established Competence Center, came into force.

Different models for different needs

Flowable provided Bank Julius Baer with a comprehensive toolkit to tackle its operational challenges. Its features enabled the automation of manual processes, improved visibility into workflows, and enhanced collaboration across teams. This, in turn, has contributed to faster processing times, reduced errors, and improved compliance. Flowable supports over 50 applications across six domain-specific platforms, all designed as desktop applications for internal users.

To develop, manage, and maintain these applications, Bank Julius Baer implemented the Competence Center, a department dedicated to managing and implementing Flowable BPM solutions. It has a dedicated team and provides expertise and support for Flowable implementation and maintenance. The Competence Center at Bank Julius Baer plays a pivotal role in enabling the bank to tailor its Flowable solutions to different usage needs, accommodating a range of development approaches.

They recognize that not all BPM projects have the same requirements. Some projects demand intricate, highly customized solutions, while others may require less complex, more agile implementations. To cater to this spectrum of needs, the Competence Center has established three distinct usage types with Flowable: Pro-code, Low-code, and Open Source.

• Pro-code: In this model, IT specialists lead the development of the solution based on detailed specifications provided by business owners. This approach ensures a high degree of flexibility, control and customization, catering to complex business workflows that often require deep integration with existing systems.

• Low-code: This approach empowers business users with limited technical expertise to actively participate in designing and refining workflows. The low-code environment provides a more intuitive visual interface, enabling faster iteration and adjustments based on user feedback. It does require training and commitment from business owners.

• Open Source: This option is particularly attractive for large, agile teams with the technical expertise to manage the entire development lifecycle independently.

The Competence Center acts as the orchestrator of these different usage models, providing the necessary support, guidance, and expertise to ensure successful implementation across the bank. Whether offering Software as a Service for end-to-end pro-code solutions, Platform as a Service for collaborative low-code development, or consulting services for Open Source implementations, the Competence Center empowers Bank Julius Baer to effectively leverage Flowable's capabilities and maximize its return on investment.

Governance is key

Bank Julius Baer recognizes that successful BPM implementation hinges on robust governance. It's not simply about deploying technology; it's about establishing a framework that ensures consistency, reusability, and adherence to regulatory standards. This is why the Competence Center collaborates closely with the company's central architects. Thressiya Pazhedathuparambil commented that as much as the Flowable fan in her would love to build a Flowable solution to every problem, the Center must maintain a close relationship with the bank's central architects; as she emphasized, “governance is key.” This ensures alignment between individual Flowable projects and the bank's overall technology architecture, promoting consistency and avoiding potential conflicts. The bank's approach to BPM governance is built on three core pillars:

• Central governance: This ensures that all BPM initiatives are aligned with the bank's overall technology architecture and strategic objectives. The Technology Architecture team is crucial in defining the strategic toolset and ensuring that the right tools are chosen for each project based on "integration level/demand complexity."

• Standards and guidelines: To ensure consistency and reusability, Bank Julius Baer has established clear standards and guidelines for process and case management. These guidelines encompass not only regulatory requirements but also best practices for process modeling, development, and documentation. This disciplined approach promotes a standardized approach to BPM across the organization, facilitating knowledge sharing and reducing redundancy.

• A reusable technology stack: The Competence Center's core development team follows agile project methodologies and leverages a reusable technology stack (the foundation layer) that any IT department can utilize for domain-specific Flowable platforms. This promotes consistency and efficiency across the organization.

By establishing this comprehensive governance framework, Bank Julius Baer has created a solid foundation for its BPM initiatives. This structured approach not only ensures compliance and reduces risks but also promotes efficiency, reusability, and scalability, enabling the bank to maximize the benefits of Flowable and achieve its digital transformation goals.

Balancing flexibility and stability with Flowable

To wrap up, Simon Wyss emphasized a crucial aspect of their BPM journey: The balance between flexibility and stability. Bank Julius Baer achieves this balance with Flowable by combining the platform’s flexibility with the Competence Center’s rigorous governance practices. As a result, the bank has achieved a harmonious balance between agility and stability – essential for success in today's dynamic banking environment.

This strategic approach has enabled Bank Julius Baer to achieve the following tangible benefits:

• Streamline and automate complex processes, leading to significant efficiency gains.

• Improve visibility and control over workflows, enhancing operational transparency and risk management.

• Foster collaboration and communication across teams and departments, breaking down silos and promoting knowledge sharing.

• Reduce operational costs and improve productivity, contributing to a stronger bottom line.

• Ensure compliance with stringent industry regulations, mitigating risks and maintaining a strong reputation.

The bank's journey showcases Flowable’s remarkable versatility, from highly bespoke open source process automation to low-code usability. By offering a range of deployment options and fostering a culture of continuous improvement, Flowable empowers financial institutions to embrace digital transformation with confidence, optimize their operations, and achieve their strategic objectives.