Transforming BPM in Banking with Low-Code Solutions

Banks handle complex processes daily, from customer onboarding and loan approvals to compliance reporting and fraud detection. Business Process Management in banking ensures these operations run smoothly while maintaining regulatory compliance and delivering high-quality customer experiences. However, many banks still rely on traditional BPM software for banks, which often results in high costs, slow implementation, and rigid workflows that fail to adapt to evolving business needs.

Banks need agile and cost-effective solutions that improve operations without overburdening IT teams to stay competitive. Low-code BPM solutions for banking offer a modern approach, enabling financial institutions to automate banking processes with low-code, reduce reliance on manual tasks, and create flexible workflows that support real-time decision-making. These solutions help banks quickly build and modify processes, improving efficiency while ensuring compliance with regulatory requirements.

Explore the limitations of traditional BPM, the advantages of low-code process automation in banking, and how financial institutions can leverage modern BPM solutions in this blog.

Challenges in traditional BPM for banks

High development costs

Traditional BPM solutions require significant IT investment to build, customize, and maintain. Banks often need specialized developers to configure workflows, integrate with existing systems, and ensure compliance with regulatory standards. The cost of hiring IT personnel and maintaining outdated systems adds to the financial burden. Additionally, modifying workflows in traditional BPM platforms often requires coding expertise, increasing dependency on IT teams and delaying necessary updates.

Slow implementation

Deploying traditional BPM software for banks can take months or even years, delaying critical process improvements. Many banking workflows, such as loan approvals, fraud detection, and customer onboarding, require frequent adjustments to stay efficient. However, rigid BPM systems make these updates time-consuming. Long development cycles delay process improvements, causing inefficiencies and outdated workflows as business needs evolve.

Regulatory compliance issues

Banks operate in a highly regulated environment where compliance failures can result in heavy fines and reputational damage. Traditional BPM tools often lack built-in compliance automation, requiring manual tracking and reporting, which increases the risk of errors. As regulations change, banks must update workflows to align with new guidelines. Legacy BPM systems make this difficult due to their inflexible structures, requiring IT teams to modify processes manually, which can be costly and time-consuming.

Limited scalability

As banks expand their services and customer base, BPM systems must scale to accommodate growing demands. Traditional BPM tools often struggle to integrate with new technologies, preventing banks from adopting AI-driven analytics, robotic process automation (RPA), or digital self-service solutions. Many legacy systems also lack cloud compatibility, making remote access and cross-department collaboration difficult. Without scalable BPM solutions, banks face bottlenecks in process execution, slowing down operations and limiting their ability to innovate.

The need for agile and scalable BPM solutions

Banks require agile and scalable BPM solutions to meet changing market demands and regulatory requirements. Modern platforms should allow:
Faster process modifications to adapt to new regulations and business requirements.

• Low-code automation that enables business users to build and adjust workflows without IT intervention.

• Smooth integration with core banking systems, CRMs, and regulatory tracking tools.

• Cloud-based accessibility to support remote banking operations and cross-functional collaboration.

Why low-code technology is the future of BPM in banking

Banks must constantly optimize their processes to keep up with regulatory changes, customer expectations, and operational demands. Traditional BPM systems require significant IT resources and long implementation cycles, making it difficult for banks to remain agile. Low-code BPM solutions for banking provide a modern, cost-effective alternative that simplifies process development, enhances compliance, and allows banks to respond quickly to market changes.

Faster deployment

Banks must frequently update processes like loan approvals, fraud detection, and regulatory reporting to stay efficient and compliant. Traditional BPM systems require extensive coding, delaying process modifications. Low-code BPM solutions for banking use drag-and-drop interfaces and pre-built templates, allowing banks to build, test, and deploy workflows much faster. Business teams can adjust workflows without IT support, reducing development time from months to weeks. This faster time to market ensures that banks remain competitive and responsive to evolving needs.

Lower costs

Developing and maintaining BPM systems through traditional methods requires a large IT workforce and ongoing infrastructure costs. Low-code process automation in banking significantly reduces these expenses by allowing business users to automate workflows without heavy coding. With automated banking processes, banks can eliminate redundant manual tasks, reduce human errors, and lower operational costs. This cost-effective approach enables banks to allocate resources to customer-centric initiatives rather than IT maintenance.

Stronger compliance

Regulatory compliance is a significant challenge for banks, with frequent updates to financial regulations requiring continuous process adjustments. Traditional BPM systems make compliance updates slow and error-prone. Low-code BPM solutions provide pre-built compliance workflows, real-time tracking, and automated reporting tools that help banks adhere to regulatory requirements with minimal manual intervention. Banks can reduce audit risks and ensure consistent regulatory adherence by integrating compliance rules directly into workflows.

Better scalability

As banks expand their digital services, they need BPM solutions that scale with growing customer demands. Traditional BPM tools struggle to integrate with AI-powered analytics, cloud banking, and mobile-first banking platforms. Low-code process automation in banking supports seamless integration with core banking systems, third-party fintech applications, and AI-driven automation tools. These platforms allow banks to adjust workflows instantly, ensuring they can scale operations without overhauling their entire BPM infrastructure.

Why banks need low-code BPM now

To remain competitive, banks must adopt agile BPM solutions that streamline operations, reduce costs, and improve compliance. Low-code BPM solutions empower financial institutions to:

• Rapidly implement process changes without heavy IT dependency.

• Reduce operational costs by eliminating inefficient manual workflows.

• Enhance customer experiences through faster approvals and service delivery.

• Improve regulatory compliance with automated audit trails and reporting.

• Scale operations to accommodate digital transformation initiatives.

Key benefits of low-code BPM in banking

Banks must constantly improve their processes to remain competitive, ensure compliance, and enhance customer experiences. Low-code BPM solutions for banking provide a flexible, scalable, and cost-effective way to optimize operations while reducing reliance on IT teams. By automating workflows and integrating compliance measures, banks can achieve greater efficiency and provide faster, more reliable services.

1. Improved operational efficiency

Banking operations involve numerous manual and repetitive tasks, such as data entry, document processing, and approvals. These tasks slow down workflows and increase the likelihood of errors. Low-code BPM solutions for banking automate these processes, reducing human intervention and eliminating inefficiencies.

• Eliminates manual errors - Automated workflows ensure accuracy in financial transactions, reducing discrepancies caused by human input.

• Enhances workflow execution - Customer onboarding, loan applications, and transaction approvals flow seamlessly without bottlenecks.

• Improves collaboration - Teams can work more effectively across departments, with real-time updates and visibility into process status.

• Accelerates decision-making - Automated decision rules enable faster loan approvals, account openings, and compliance checks.

2. Compliance and risk management

Regulatory compliance remains a top priority for banks, but managing audits, documentation, and reporting can be challenging. Many financial institutions still rely on manual compliance tracking, which increases the risk of errors and non-compliance penalties. Low-code BPM solutions for banking integrate compliance checks into workflows, ensuring adherence to regulations without disrupting operations.

• Automated regulatory updates - Pre-built templates help banks adapt quickly to new financial regulations.

• Real-time audit trails - Automatically monitor all transactions, approvals, and process changes for compliance.

• Secure documentation management - Banks can efficiently store and retrieve compliance documents, reducing the risk of misplaced or outdated records.

• Risk reduction - Automated compliance workflows ensure all processes follow regulatory guidelines, reducing the likelihood of fines or legal issues.

3. Enhanced Customer Experience

Customers expect faster and more convenient banking services. Slow account openings, lengthy loan approvals, and inefficient customer support frustrate users and push them toward competitors. Low-code BPM solutions for banking enhance customer interactions by accelerating processes and providing self-service options.

• Speeds up loan approvals - Automated workflows verify documents, check credit scores, and approve loans much faster than traditional methods.

• Simplifies account opening - Customers can submit digital forms and receive instant approvals instead of waiting for manual processing.

• Enhances self-service capabilities - AI-driven chatbots, automated responses, and mobile banking features reduce the need for in-person visits.

• Reduces wait times - Faster backend processing ensures customers get timely updates and resolutions for their queries.

Why banks should prioritize low-code BPM solutions

Banks need solutions that enhance efficiency, strengthen compliance, and improve customer service. Low-code BPM solutions for banking provide:

• Easy and smooth automation that eliminates inefficiencies.

• Stronger compliance controls to prevent regulatory risks.

• Faster processing times for better customer interactions.

• Scalable workflows that grow with business needs.

Practical use cases of low-code BPM in banking

Banks must handle large volumes of transactions and regulatory processes daily. Traditional BPM software for banks often creates inefficiencies due to manual workflows and outdated systems. Low-code BPM solutions for banking automate and simplify these processes, improving accuracy, compliance, and customer satisfaction. Below are three critical areas where low-code process automation in banking delivers significant benefits.

1. Loan processing automation

Loan processing involves multiple steps, including data collection, credit checks, approvals, and documentation. Manual processes slow down approvals, leading to delays in loan disbursement and customer dissatisfaction. Low-code BPM solutions for banking eliminate these bottlenecks through automation.

• Automates data collection - Extracts customer details, financial history, and credit scores from integrated systems.

• Expedites approval workflows - Pre-defined rules ensure instant approvals for eligible customers while routing complex cases for review.

• Ensures compliance - Automated checks validate regulatory requirements, reducing non-compliance risk.

• Improves customer satisfaction - Faster approvals reduce waiting times, providing a smooth experience.

With low-code process automation in banking, financial institutions can process loans in days instead of weeks, reducing operational costs while enhancing efficiency.

2. Customer onboarding

A smooth onboarding process plays a crucial role in customer retention. Traditional onboarding involves extensive paperwork, manual KYC verification, and multiple approval layers, leading to slow account openings and frustrated customers. Low-code BPM solutions for banking optimize this process through automation.

• Structures KYC verification - Integrates with national identity databases to verify customer details automatically.

• Eliminates paperwork - Digital forms and e-signatures replace manual documentation.

• Automates document verification - Uses AI-powered tools to validate documents instantly.

• Accelerates account openings - Customers receive approvals faster, reducing drop-off rates.

By using low-code process automation in banking, banks can enhance the onboarding experience and ensure that new customers can start using financial services without delays.

3. Compliance and regulatory reporting

Regulatory compliance requires banks to maintain accurate records, generate reports, and submit audit-ready documentation. Manual compliance tracking increases the risk of errors, penalties, and reputational damage. Low-code BPM solutions for banking simplify compliance management by integrating automated tracking and reporting.

• Automates compliance workflows - Ensures every transaction adheres to industry regulations.

• Tracks compliance activities - Uses real-time dashboards to monitor audit trails and regulatory changes.

• Reduces manual errors - Automates report generation to ensure accuracy.

• Enhances transparency - Provides complete visibility into compliance processes for regulators and auditors.

Why choose Kissflow’s low-code platform for BPM in banking:

Banks need flexible, secure, and scalable BPM solutions to meet regulatory changes, customer expectations, and operational demands. Kissflow’s low-code BPM solutions for banking provide a modern approach that simplifies process automation while reducing IT dependency. Unlike traditional BPM systems, Kissflow offers pre-built, customizable templates for banking workflows such as loan processing, compliance tracking, customer onboarding, and fraud detection. With its drag-and-drop process builder, banks can modify workflows quickly, ensuring faster time-to-market for new process improvements. The automated compliance tracking feature helps financial institutions maintain regulatory adherence with real-time audit trails, rule-based transaction validations, and automated reporting, reducing the risk of penalties and manual errors.

Scalability and security remain critical for banks handling large volumes of transactions and sensitive financial data. Kissflow integrates seamlessly with core banking platforms, CRMs, and third-party fintech applications through API-driven connections, allowing banks to enhance their existing systems without disruption. Its cloud-based architecture supports remote banking operations, while its enterprise-grade security features, including end-to-end encryption, multi-level authentication, and global regulatory compliance certifications, ensure that sensitive data remains protected. By choosing Kissflow, banks gain a scalable, adaptable, and secure BPM platform that can automate processes, strengthen compliance, and improve operational efficiency, ensuring long-term growth in a competitive industry.

Getting started with low-code BPM in your bank

Low-code business process management (BPM) can significantly improve operational efficiency, compliance, and customer experience. To make the transition smooth, banks should take a structured approach.

1. Identify key processes for automation

Start by assessing the banking workflows that need improvement. Common candidates include:

• Loan processing - Automating approvals, credit checks, and document management

• Customer onboarding - Simplifying KYC verification and reducing manual paperwork

• Regulatory compliance - Automating reporting and risk management

• Fraud detection - Enhancing security through rule-based workflow automation

Look for processes with high manual effort, compliance risks, or frequent customer touchpoints.

2. Select the right low-code BPM platform

When choosing a low-code BPM platform, consider:

• Ease of use - Can business users modify workflows without IT support?

• Integration capabilities - Does it connect smoothly with core banking systems, CRMs, and compliance tools?

• Scalability - Can it support future banking needs, such as AI-driven automation?

• Security and compliance - Does it meet banking security standards and regulatory requirements?

A platform like Kissflow offers pre-built banking templates, easy integrations, and strong compliance features​​.

3. Build a cross-functional team

To successfully implement low-code BPM, banks need collaboration between:

• IT teams - Ensuring technical feasibility and integration

• Process owners - Defining workflow improvements

• Compliance officers - Embedding regulatory controls into workflows

• Customer service teams - Enhancing customer interactions with automated solutions

By involving stakeholders early, banks can ensure smooth adoption and minimize resistance.

4. Start with a pilot project

Banks should start with a pilot project rather than overhauling all processes at once.  Choose a process with clear ROI, such as:

• Automating loan application approvals

• Reducing manual compliance tracking

• Enhancing fraud detection workflows

• Monitor performance metrics, such as processing time reduction and compliance accuracy, before scaling to other areas.

5. Train teams and encourage citizen development

One of the biggest advantages of low-code BPM is enabling business users to create and modify workflows. Train employees on:

• Drag-and-drop process builders

• Workflow optimization strategies

• Data security and compliance best practices

6. Monitor, optimize, and scale

Post-implementation, continuously track process performance through:

• Real-time analytics - Identifying bottlenecks in banking workflows

• Compliance tracking - Ensuring processes adhere to regulatory updates

• User feedback - Refining workflows based on customer and employee input

Once the pilot project succeeds, banks can scale low-code BPM across departments, integrating AI-driven decision-making and predictive analytics​.

Conclusion

Low-code BPM is reshaping how banks manage workflows, reducing operational costs, strengthening compliance, and improving customer service. Financial institutions can stay agile and competitive by automating processes, enabling non-technical teams to build workflows, and integrating with banking systems.

Kissflow platform offers a secure, scalable, easy-to-use, low-code BPM solution tailored to banking needs. Whether it's loan approvals, compliance automation, or customer onboarding, Kissflow low code for banking simplifies workflow automation while ensuring regulatory adherence​​.