Why are Incentives still Computed Manually in BFSI Industry?

The term ‘Digital Transformation’ is heard everywhere, all the top management folks in the BFSI industry are swaying their thoughts on how to achieve digital break-throughs. But unlike the major transformations, I believe the ones that can actually impact the real-time work and improvise processes are the ones leaders in the BFSI world should dwell deep into. 

Little transformations go a long way in bringing about the desired reduction in costs and an increase in efficiency, something the organization strives for. While the computation of incentives may seem to be manageable in the manual way the pros are much higher, a small error can cost the company a huge amount. And as I have observed 99% of the times there are errors while computing incentives manually. 

Besides this, there are other challenges like:

Meeting Audit Compliance: Any change done manually is not accurately trackable. Missing some link, some computation can result in generating an incorrect audit report. This is a major concern for all the prospective clients we speak to. 

Reduction in payment TAT: Payments often get delayed because a long hierarchical chain of approvals is needed before the final disbursement is made. This typically takes 30-60 days even in the top-notch institutions. Organizations that pay faster are usually able to maintain a high degree of partner satisfaction and generate more revenues. Also, the time lag increases if there are any manual adjustments to be considered.

Policy Modeling and Implementation is a difficult task: Forget real-time policy modeling, with my observation an organization takes about a month to implement a policy. In a dynamic world where the business environment and requirements keep changing all the time, it is more likely that a robust policy modeler will be of high-value to the organizations. 

The list goes on, but all of this can be simply sorted by making a quick addition of a robust incentive automation solution. Organizations could largely benefit from an operational and revenue perspective from a solution like that.

A change is needed, manual computation is not a long-term solution. Technology adaption in the right ways can save companies millions of dollars. So are you ready to transform the way you compute and approve your incentive payouts with us?

Here is everything and more you would like to know about Hyperform – The world’s best incentive compensation automation solution specially designed for the BFSI domain. To get a quick demo of the solution you can write to us at abhishek.roy@act21softwares.com

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