USE OF INFORMATION TECHNOLOGIES TO IMPROVE THE OPERATIONAL EFFICIENCY OF BUSINESS PROCESSES IN THE FINANCIAL SECTOR

ABSTRACT

The article examines the role of information technologies in improving the operational efficiency of business processes in financial organizations in the context of the digital transformation of the economy. The theoretical foundations of operational efficiency are analyzed from the perspectives of the process approach and transaction cost theory. Key classes of IT solutions used for the digitalization of internal banking processes are systematized, including BPM/BPMS platforms, robotic process automation, integration solutions, and analytical and intelligent systems. It is shown that the implementation of these technologies leads to shorter operation cycle times, reduced error rates, improved process scalability, and enhanced quality of customer interaction. Based on industry studies and practical cases, it is substantiated that information technologies act as a systemic factor in the sustainable improvement of operational efficiency and economic performance of financial organizations.

АННОТАЦИЯ

В статье рассматривается роль информационных технологий в повышении операционной эффективности бизнес-процессов финансовых организаций в условиях цифровой трансформации экономики. Проанализированы теоретические основы операционной эффективности с позиций процессного подхода и теории транзакционных издержек. Систематизированы ключевые классы ИТ-решений, применяемых для цифровизации внутренних процессов банков, включая BPM/BPMS-платформы, роботизированную автоматизацию, интеграционные решения, аналитические и интеллектуальные системы. Показано, что внедрение данных технологий обеспечивает сокращение времени цикла операций, снижение ошибок, повышение масштабируемости процессов и улучшение качества взаимодействия с клиентами. На основе отраслевых исследований и практических кейсов обосновано, что информационные технологии выступают системным фактором устойчивого повышения операционной эффективности и экономической результативности финансовых организаций.

Keywords: information technologies, operational efficiency, digitalization, business processes, financial sector, automation.

Ключевые слова: информационные технологии, операционная эффективность, цифровизация, бизнес-процессы, финансовый сектор, автоматизация.

Introduction

In the context of the accelerating digital transformation of the economy, the financial sector represents one of the most technologically intensive and dynamically developing industries. The growing volume of transactions, increasing complexity of regulatory requirements, and intensification of the competitive environment require banking organizations to continuously improve internal business processes and reduce operational costs. Information technologies are no longer merely a supporting resource but have become a strategic factor in ensuring the sustainability and competitiveness of financial institutions.

The digitalization of banks’ internal processes involves a broad spectrum of areas, such as the automation of document management, the establishment of business process management (BPM) systems, the introduction of robotic process automation (RPA), the development of corporate communication platforms, and the integration of heterogeneous information systems. The use of these technologies enables the reduction of processing time, the minimization of the human factor, the improvement of procedural transparency, and the reduction of transaction costs. At the same time, the development of big data analytics and artificial intelligence technologies enhances accurate risk management and personalizes customer services, thereby creating an additional positive effect on the efficiency of banking operations. 

The purpose of this research is to explore the role of information technologies in enhancing the efficiency of business process operations in financial institutions and to estimate the effect of these technologies on the reduction of transaction costs. To accomplish this goal, the research will attempt to explore the theoretical basis of efficiency, systematize contemporary IT tools for the digitalization of internal processes, and investigate cases of their implementation in the banking industry with an estimation of the economic effect.

Main part. Operational efficiency of financial institutions: theoretical and methodological context

Operational efficiency in the financial industry can be defined as the organization’s capacity to provide the highest possible volume and quality of financial services with the lowest possible use of resources and acceptable risk levels. In economic theory, operational efficiency is closely associated with productive and allocative efficiency and transaction cost theory, which was developed by R. Coase and O. Williamson [1]. In banking, operational efficiency is a manifestation of the rational internal organization of processes such as payment, lending, cash management, risk management, and customer business. It can be measured using quantitative indicators such as the cost-to-income ratio (CIR), operating expenses to assets, labor productivity, and average cost per transaction.

The specificity of the financial sector is characterized by a high share of information-intensive operations, in which data rather than material assets constitute the primary object of processing. This is confirmed by industry surveys: the KPMG survey of 200 banking leaders conducted in 2025 showed that 68% of respondents already have a target data governance and architecture model (fig. 1).

Figure 1. Data management capabilities in banks according to the KPMG Banking Technology Survey [2]

The obtained results confirm that data management forms the foundation of banks’ operating models, thereby determining the direct dependence of operational efficiency on the quality of information infrastructure and the level of process automation.

It should be noted that a substantial share of banks’ operating costs is attributable to personnel, IT infrastructure, compliance procedures, and information security. At the same time, growth in transaction volumes is not always accompanied by a proportional increase in revenues, which reinforces the need for scalable technological solutions. Under these conditions, operational efficiency is largely determined by the quality of information infrastructure and the level of process automation, as they enable the processing of increasing data flows without a linear rise in costs. Theoretical models of operations management in banking are based on a process-oriented approach, which involves the identification, formalization, and optimization of end-to-end business processes in order to reduce cycle time and decrease the probability of errors.

From the perspective of institutional economics, an important element of analysis is the category of transaction costs, which includes expenditures on information search, contract negotiation and administration, monitoring, and enforcement of obligations. In the financial sector, such costs encompass expenses related to customer identification (KYC), creditworthiness assessment, interbank settlements, and compliance with regulatory requirements.

The development of information technologies transforms the structure of these costs by shifting a substantial share of them into an automated format and reducing dependence on the human factor. Thus, the theoretical foundation for studying operational efficiency in banking is formed at the intersection of transaction cost theory, process management, and digital economy concepts, which makes it possible to view information technologies as a key instrument of structural optimization in financial organizations.

Information technologies as a tool for the optimization of internal business processes

Within contemporary organizational management theory, information technologies are viewed as a structural component of both production and managerial infrastructure, enabling the transformation of coordination, control, and execution mechanisms in business processes [3]. In the financial sector, digital solutions constitute the technological environment in which data processing, managerial decision-making, and the implementation of regulated procedures are carried out.

From a theoretical perspective, information technologies perform several interrelated functions within organizations – namely instrumental, integrative, and controlling roles (table 1).

Table 1.

Core functions of information technologies in organizations [4, 5]

The concept of digital transformation of internal processes implies a shift from a function-oriented management model to an end-to-end process architecture supported by information systems. Within this framework, information technologies are not limited to a supporting role but become the foundation of organizational design. They enable the modeling, analysis, and reengineering of business processes, as well as the adaptation of organizational structures to changing external conditions. As a result, a digital operating environment is formed in which optimization is achieved not only through the acceleration of individual operations, but also through a systemic revision of interdepartmental interaction logic and resource allocation.

Architectural and technological features of implementing IT solutions for internal process optimization in financial institutions

The practical implementation of IT solutions aimed at optimizing internal business processes in financial institutions requires the formation of an integrated digital architecture that ensures end-to-end process execution, data consistency, and operational resilience. In contrast to fragmented automation of individual functions, contemporary approaches are based on the development of modular, service-oriented, or microservice architectures, within which different classes of digital platforms perform complementary roles in supporting process orchestration, integration, and control (table 2).

Table 2.

Key architectural components of the digital environment for internal process optimization [6-8]

It should be noted that the implementation of IT solutions for optimizing internal business processes in financial institutions represents a phased process that involves the successive development of process, integration, and analytical maturity. Unlike isolated automation initiatives, digital transformation is evolutionary in nature and requires the coordinated advancement of organizational, process, and technological elements (fig. 2).

Figure 2. Stages of implementing IT solutions for internal process optimization in financial institutions

Figure 2 illustrates the staged logic of implementing IT solutions for internal process optimization. The initial stage focuses on defining the target digital architecture and selecting core platforms. This is followed by end-to-end business process modeling and standardization to identify automation opportunities. The next stage involves implementing process orchestration using BPM/BPMS platforms, after which system integration and operational automation are scaled through APIs and RPA. The final stage is dedicated to developing the analytical and control layer, including monitoring and intelligent analytics, to support continuous process improvement and sustained operational efficiency.

Operational and economic effects of digitalization in financial institution

The digitalization of internal processes in financial institutions produces effects that go beyond the abstract reduction of transaction costs and manifest in measurable changes in operating models, including shorter processing cycles, lower error rates, improved scalability of processes, and higher controllability of IT landscapes.

The findings of the Deloitte Digital Banking Maturity 2024 study indicate that digital transformation in banking has moved from isolated initiatives to systematic competition in the quality of end-to-end client and operational journeys [9]. Based on the assessment of 349 banks across 44 countries, Deloitte identifies a group of Digital Champions (top 10% of performers), reflecting the emergence of institutions with structurally more mature digital operating models.

At the architectural and process-management level, significant effects are achieved through the implementation of process orchestration platforms. For example, in the case of Barclays, the Camunda platform is used as a centralized workflow orchestration layer in post-trade processes, enabling coordination of microservices and separation of process logic from application systems. This approach allowed the bank to scale processing to tens of millions of transactions per day, increase operational transparency, and reduce exception-handling time through detailed monitoring. In addition, aggregated Camunda customer data report up to $15 million in savings from process quality improvements and more than 20,000 hours of development time saved, indicating a measurable contribution of orchestration platforms to operational efficiency and reduced maintenance effort [10].

A distinct group of effects is associated with the digitalization of onboarding and compliance processes, where BPM logic is combined with document automation, API integration, RPA, and artificial intelligence. A representative example is U.S. Bank, which implemented the Onboarding Tracker within its SinglePoint platform for corporate client onboarding. According to Celent and U.S. Bank, more than 5,000 companies adopted digital onboarding within one year, the back-office team saved over 24,000 hours, and a typical RPA scenario (wire profile report generation) was reduced from approximately four hours to 10–15 minutes [11]. These results demonstrate that digitalization of onboarding and compliance delivers measurable improvements in speed, labor intensity, and service quality.

Automation of routine and rule-based operations also makes a substantial contribution to operational efficiency, particularly in back-office and compliance domains. An illustrative example is JPMorgan Chase, which reports a 40% reduction in unit costs of KYC processes between 2022 and 2025 within its Corporate and Investment Bank as a result of AI and technological enhancements, along with more than 175 AI use cases in production supporting operations, risk management, and client processes [12]. The bank also indicates that approximately 65% of applications now run significant workloads in public or private cloud environments (and up to 80% including virtualized platforms), creating a technological foundation for scalable automation and faster process change.

Digitalization additionally exerts a strong influence on client interaction quality, as operational efficiency is directly reflected in service speed, reliability, and availability. According to Bank of America, 94% of customer interactions are digital, clients engaged in financial activities through digital channels about 30 billion times in 2025 (14% year-over-year growth), and the virtual assistant Erica has exceeded 3.2 billion interactions since launch [13]. These figures show that digitalization of internal and client-facing processes simultaneously reduces operational load and scales service quality without proportional increases in personnel costs.

In summary, the evidence indicates that digitalization in financial institutions generates a broad spectrum of operational and economic effects, including higher productivity, lower unit costs of core procedures, faster time-to-revenue, improved process reliability, and enhanced client experience. The combination of these effects explains why information technologies have become a central mechanism for sustainable improvement of operational efficiency in the financial sector.

Institutional, technological, and organizational constraints of digital transformation in financial institutions

Digital transformation in financial institutions, despite its substantial potential to improve operational efficiency, is accompanied by a complex set of interrelated constraints and risks affecting IT architecture, institutional frameworks, and human resource management. Unlike isolated automation initiatives, transformation is systemic in nature and affects fundamental elements of organizational functioning, which makes early identification and consideration of key risk groups essential when developing digital strategies (table 3).

Table 3.

Key groups of constraints and risks of digital transformation in financial institutions

Overcoming these constraints requires a comprehensive approach based on phased architectural modernization, adoption of modular and API-driven design principles, implementation of DevSecOps practices and security-by-design concepts, and establishment of change management systems focused on continuous development of digital competencies. Additional emphasis should be placed on vendor diversification and the use of open standards to reduce technological lock-in and enhance the flexibility of the IT landscape. Together, these measures create the conditions for mitigating transformation risks and achieving sustainable long-term benefits from digital initiatives.

Conclusion

Information technologies act as a systemic driver of improved operational efficiency of business processes in the financial sector by enabling structural optimization of internal procedures and reducing transaction costs. The digitalization of document management, automation of repetitive operations, adoption of process-oriented platforms, and integration of analytical tools transform the traditional banking operating model into a controlled and scalable digital environment. At the same time, technological solutions contribute not only to faster transaction processing and greater process transparency, but also to the strengthening of institutional resilience of financial organizations. However, the achievement of sustainable long-term effects requires careful consideration of technological, regulatory, and organizational constraints, which confirms the necessity of a comprehensive approach to the digital transformation of banking activities as a key direction in the development of the modern financial system.

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