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Lending
BPMN + DMN + PayPlan = $$$
Efficiency is paramount. It’s the thing above all else, and the backbone of success. That’s true in every industry, but in finance and lending, it is especially so. Every process, from customer application to transaction processing, must be streamlined and optimized to meet the demands of modern consumers. That's where the combination of BPMN and DMN comes in – invaluable tools that, when combined, deliver incredible results for lenders. Creating efficient, fast, and incredibly specific results. This time on the blog, we'll explore what BPMNs and DMNs are, how, with PayPlan they work together, and how lenders profit. Let’s go!
The Key Takeaway: BPMNs and DMNs working in tandem through PayPlan allow lenders to control their customer journeys, workflows, underwriting processes, data, and criteria with lightning speed and precision at a level previously unavailable to all but the most prominent companies.
Before we get too far into what makes PayPlan’s synthesis of BPMNs and DMNs together, we should brief you on DMN and BPMN.
Understanding DMN
Decision Model and Notation (DMN) serves as a standardized notation for modeling and executing complex decisioning making architecture. It provides a graphical representation of the decision-making process, making complex decision logic easier to understand and manage. DMN allows lenders to define decision models that can be integrated seamlessly into their existing systems, enabling automated decision-making at scale.
At its core, DMN consists of decision requirements diagrams (DRDs) that visually represent the dependencies between decisions, input data, and business knowledge sources. These diagrams help lenders break down complex decision logic into manageable components, facilitating clear communication and collaboration among stakeholders.
Here is an example of a DMN at work:
Unpacking BPMN
Business Process Model and Notation (BPMN) complements DMN by providing a standardized notation for modeling business processes. BPMN allows lenders to define, visualize, and manage their lending processes in a structured and intuitive manner. By representing processes graphically, BPMN enables lenders to identify bottlenecks, streamline workflows, and improve operational efficiency.
BPMN diagrams consist of various elements such as tasks, gateways, events, and flows, each representing different aspects of the lending process. These diagrams provide lenders with a bird's-eye view of their processes, allowing them to optimize and automate repetitive tasks, reduce manual errors, and enhance overall productivity.
Here is a BPMN in action:
Harmonizing DMN and BPMN - How PayPlan Delivers Results for Lenders
Alright, so we’ve seen how the DMN and the BPMN work separately, but how about together? While DMN focuses on decision-making and BPMN focuses on process modeling, the real magic happens when these two frameworks are combined. By integrating DMN decision models into BPMN processes, lenders can create end-to-end solutions that seamlessly orchestrate both decision logic and process flow and build out an incredible number of offer options and specificity in customer journeys.
At the heart of this integration lies the ability to invoke DMN decision services within BPMN processes. This means that when a decision point is reached within a lending process, the appropriate DMN decision model is invoked to determine the optimal course of action. This tight coupling between decision-making and process execution ensures that lenders can make informed decisions in real time, leading to faster loan approvals, reduced risk, and improved customer satisfaction.
Any change to the workflow takes work. The old way, changing the order of screens or documents in a customer journey, adding more notifications in different steps, or removing notifications entirely – these would require a ticket, coding in an environment, pushing it to a staging platform, waiting for release, then ensuring it all works correctly. It takes a lot of time and effort. But it doesn’t have to!
This is where PayPlan comes into the picture. We built a platform that delivers huge potential to lenders, and one piece is built to answer that problem. Using BPMNs and DMNs in sync, allows changes to be made in minutes instead of weeks.
PayPlan: Delivering BPMN + DMN
The Key Benefits for Lenders - Speed and Simplicity
The synergy between DMN and BPMN within PayPlan offers a multitude of benefits for lenders looking to stay ahead in today's competitive landscape:
- Streamlined Processes
- Improved Accuracy and Decreased Fraud
- Enhanced Flexibility
- Better Customer Experiences
- Optimized Resource Allocation
And here’s the Big One:
- Access to Previously Unavailable Levels of Dynamic Offer Options:
1. Streamlined Processes: By integrating decision logic directly into lending processes, lenders can eliminate manual handoffs and delays, resulting in faster and more efficient loan processing.
2. Improved Accuracy and Decreased Fraud: Automated decision-making based on predefined rules and criteria reduces the risk of human error, ensuring consistent and reliable lending decisions.
As soon as a trend indicates fraud, decisions can be modified earlier in the journey to segment potentially fraudulent transactions into new, stricter workflows that further weed out the good from the bad.
3. Enhanced Flexibility: With DMN decision models, lenders can easily update decision logic in response to changing regulations, market conditions, or business requirements, ensuring adaptability and compliance.
4. Better Customer Experience: By reducing processing times and providing more transparent and consistent decision-making, lenders can deliver a superior customer experience, fostering loyalty and satisfaction.
5. Optimized Resource Allocation: Lenders can allocate resources more effectively by optimizing lending processes and automating routine tasks, focusing on value-added activities that drive growth and profitability.
6. Access to Previously Unavailable Levels of Dynamic Offer Options: Using these two tools together allows lenders of all sizes to have access to incredible levels of dynamic offer options. This level has traditionally been reserved for companies like Google, Meta, and Apple. This level of dynamic offer options is historically outside the realm of most lenders, even communication giant AT&T, which just started this in the last six months.
The DMN and BPMN working in tandem allows for incredibly agile, fast fine-tuning of lender’s workflows. It doesn't take programming time, dev time, tickets, etc; it just takes the ability to drag and drop and work on a basic spreadsheet.
Next time on the blog, we will look at Managing Loan Acquisition Projections with Nathan Rea, Vice President of Strategy & Growth.
Book a demo of PayPlan and see what the power of BPMN x DMN can do for your business!
