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KVB optimises process on foreign inward remittances and domestic transfers
Karur Vysya Bank (KVB), a prominent Indian financial institution, sought to optimise its inward remittance services to cater to a growing demand for cross-border payments. Known for its robust banking solutions, KVB aimed to modernise its foreign transaction processes, ensuring faster settlements, greater transparency, and enhanced customer satisfaction.
Tech used
Corporate Banking
Automation
Data Reconciliation
API Management
India
Challenge
High Transaction Volume Management: Daily transaction volumes demanded efficient batch processing to prevent backlogs and maintain service-level agreements (SLAs) for processing times.
Processing Delays: The lack of automation and streamlined workflows resulted in prolonged transaction processing times. This caused frustration among customers who expected quick and seamless remittance services, especially in an increasingly digitised financial ecosystem.
Complexity in Multi-step Approvals: KVB’s existing system required manual processing and approvals for foreign remittance transactions, increasing the chances of delays and errors. A robust maker-checker mechanism was essential to ensure compliance and reduce operational risks.
User Management and Security: With sensitive financial data at stake, ensuring secure and seamless access for bank employees became critical. The bank needed to implement centralised user authentication while maintaining strict access control policies.
Solution
Automation of Processes: Cateina introduced an advanced inward remittance processing system that automated key stages of the transaction lifecycle. This system eliminated the need for manual interventions in tasks like beneficiary validation, currency conversion, and transaction approvals. By automating these processes, the bank significantly reduced processing times and errors, enhancing overall operational efficiency.
Active Directory Server Integration: By integrating the AD server, KVB centralised its user authentication system. This enabled seamless, secure access for employees based on their roles, ensuring that only authorised personnel could perform specific operations.
Maker-Checker Mechanism: A maker-checker workflow was implemented to split the transaction approval process into two stages: entry by the maker and verification by the checker. This reduced the chances of fraud or errors and enhanced compliance with regulatory standards.
Batch Processing for High Volumes: The solution included batch-processing capabilities to handle large volumes of remittance transactions efficiently. By grouping transactions into batches, the system reduced processing time while maintaining traceability and accuracy.
Automation and Reporting: Automated workflows reduced manual intervention, while real-time reporting dashboards provided visibility into transaction statuses and approval workflows.
Result
Faster Transaction Processing: Transaction processing time significantly reduced, enhancing the bank's operational efficiency and ensuring quicker service delivery.
Improved Security and Compliance: The maker-checker mechanism, combined with role-based access controls, enhanced data security and regulatory compliance.
Better User Experience: Bank employees benefited from a streamlined, intuitive workflow, reducing the learning curve and improving productivity.
Operational Cost Savings: Automation and reduced manual interventions led to significant cost savings, freeing resources for other strategic initiatives.
Market Competitiveness: These improvements positioned the bank as a key player in handling foreign inward remittances and domestic transfers, strengthening its competitive edge and market reputation.
