Business Process Analysis: Reliable Finance Company Payment System

This report analyzes the payment processing system of the Reliable Finance Company (RFC), a finance company aiming to expand its branches. The report identifies stakeholders, defines the project scope, and examines current payment processes, highlighting issues like missing payment vouchers and inefficiencies. It proposes improvements such as signature scanning and online payment systems. The report presents a new process model using BPMN diagrams, discusses the strengths and weaknesses of modeling techniques (BPMN and UML), and addresses technical and business complexities, including fraud prevention and stakeholder management. The conclusion emphasizes the importance of business process modeling and suggests the implementation of digital technologies to streamline RFC's payment system. The report provides a comprehensive overview of the RFC's payment system, identifying issues, proposing solutions, and offering insights for business improvement.

Running head: BUSINESS PROCESS MODELLING
Business Process Modelling
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction:...............................................................................................................................2
Stakeholder of the Project:.........................................................................................................2
Scope Boundaries for the Project:..............................................................................................3
Processes Considered for the Project:........................................................................................4
Current process model for the payment processing system:......................................................5
Changes in Business and Information Payment Processing improvement:...............................5
New Process Model for re-designing Payment Process:`..........................................................7
Strengths and Weaknesses of modelling techniques:.................................................................8
Technical and Business Complexity:.........................................................................................8
Conclusion:................................................................................................................................9
Bibliography:............................................................................................................................10

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Introduction:
The Reliable Finance Company is currently one of the biggest organization in
Australia which provides loans to individual persons for assisting them in various types of
purchases which includes appliances, automobiles, home improvements and many more other
things. Currently the Reliable Finance Company is looking for expanding their business area
in Australia by increasing their total number of branches. They are currently possessing 178
branches and looking for expanding their branches to 400 within next three years. Also, after
expanding to 400 branches this organization also looking to increase their branch numbers to
1000 in further 5 years. Currently the Reliable Finance Organization is having various of
problems regarding payment process of their customers and it is not possible for the Reliable
Finance Company to achieve their target with current deficiency in the payment processing.
Due to this reason this organization is aiming to optimise their payment processing method.
Here for executing the current project of optimising payment processing method
various of tasks need to be undertaken. Thus in this project main stakeholder regarding the
project will be identified. In the next step scope boundaries for the project will be discussed.
Following that main process that need to be considered for the project will be evaluated.
Further in this discussion modelling diagrams will be presented for demonstrating previously
identified processes.
Stakeholder of the Project:
For this project there are various of stakeholders who are actively contributing to the
project. In the following table the important stakeholders regarding the project is identified.
Stakeholder Role of the Stakeholder
Bryce Clarkson Manages the whole organization (Grandson

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of the founder)
President President is associated with the re designing
process of the current payment processing
system in the Reliable Finance Company.
Customers Customers take loans from the existing
branches of the Reliable Finance Company.
Payment Processing Clerk Solves the issues regarding payment
processing when the paid voucher is
missing.
Branch Personnel Verifies the existing loan ID of the customer
by checking customer card file.
Collection Agents Collection agents takes the follow up
regarding the loan cases which are overdue
more than 60 days.
Branch Manager Processes urgent request loan settlement
figure.
Customer Service Deals with late and missing payment
matters.
Clerical Personal Maintains local branch loan files.
Scope Boundaries for the Project:
The scope boundaries for a project identifies what are main things that are included
within the project. This clearly defines the extent of the project scope and helps regarding the
decision making process. Thus in this case the main scope regarding the project is that this
process will address the current problems regarding the payment processing. Through this

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modification the current system will be streamlined and enhanced. Thus it will also help the
Reliable Finance Company to achieve their target of 1000 branches all over the Australia.
Processes Considered for the Project:
The main processes which needed to be undertaken for the project consists various of
steps. In the first process regarding the project all of the issues that are present in the current
payment process need to be identified. From this process it has been identified that one of the
main problem in this case is regarding the mailed payment method. In this mail method of
payment voucher booklet is missing in about 50% of the cases. This deficiency of voucher
booklet does not create any type of problem in the branch location, but in the home office this
creates a huge problem as in the home office it is very much difficult to trace the payments as
in the home office there is no local customer card file. In the present scenario incoming
payment which are not having any type of vouchers is checked against outstanding load files
which is very much critical. Also, there is a bottleneck in the current existing payment
process which creates some additional problems. In this payment process clerical overhead is
caused when customers does not pay their outstanding loans for more than ten days against
the due date. In this case payment does not get updated in the outstanding loan files until
delinquency analysis is run. As the current problem regarding the existing system has been
identified now this problems need to be addressed. The project implementation will be started
by replacing the existing payment processing system. The project will be completed
successfully after upgrading all of the current payment processing system.

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Current process model for the payment processing system:
For the development of the BPMN model an evaluation is made on the flow of
information of the system and finding the actors involved for the management of the process.
The activities of current payment processing system is analysed and delinquency analysis
system is evaluated for management of the overdue and management of collection of cash.
The flaws in the current system can be identified with the development of the current
payment processing model. The changes that can be made in the system is evaluated for
redesigning the system and increasing the efficiency.
Changes in Business and Information Payment Processing improvement:
The main change which is required in the business process is the regarding the
mailing of payment directly to the Home Office. This type of payment process creating a big
problem in the Reliable Finance Company as in this cases about half of the payment is
coming without any type of Voucher Booklet. Due to the missing of voucher booklet Reliable
Finance Company is not able to track all the payments that have been mailed to the Branch
Office. As in this cases physical booklet is used for keeping the track of payments this type of
payment method can be considered as the analogue type of payment. Digital type of tracking

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method can be applied for keeping the track of payments in this case. Here in this case for
identification of the payment signature scanning methods can be utilised. Here it must be
instructed to the customers to duly sign the documents while mailing the papers. From those
signatures, signatures verification technology can be used for identification of the customers.
So that payment can be updated directly against that customer. Also the Reliable Finance
Company can start another type of payment system which is the online payment system.
Thorough the online payment system the Reliable Finance Company can easily collect the
payments from the customers and in this process no manual effort is required for the
determining which customer has paid the loan. All the information will be stored
automatically against the ID of the customer in the database including the paid amount of
money and total outstanding loan. Thus this online payment system can be implemented by
the Reliable Finance Company for improving the payment process.

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New Process Model for re-designing Payment Process:`
Use Case
BPMN

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In the redesigned information system a validation is done in each of the stages such
that if any error is found much later in the system the system can stop and the system is
updated accordingly. The new system is designed for adding new modules such as
Delinquency analysis system and settlement accounting system can be added to the main
functional module for working together and increase the efficiency of the current payment
processing management system.
Strengths and Weaknesses of modelling techniques:
Currently there are various types of modelling techniques that are available for the
business process modelling. In the aspects the two most used modelling techniques are the
business process modelling notation and another one is the UML diagrams.
In this aspect the main strength of the BPMN is that it provides an easy way for the
non-expert users so that they can easily understand the process diagrams. Also, this BPMN
represents sematic of complex processes in an intangible form easily (Ivanchikj, Ferme and
Pautasso 2017). It also reduces the noise communication between design of process and
implementation. The main weakness of the BPMN is that for BPMN several iterations are
required for the diagram implementation. Also, it is not straight forward in representation of
the roles.
In the case of UML it is highly recognised platform for the business process
modelling. Also, the UML is highly flexible in the modelling process (Stikkolorum and
Chaudron 2016). In the case of UML formal notation is not necessary and this is one of the
biggest weakness of UML. The UML also becomes more complex with its increased usage.
Technical and Business Complexity:
In this context various of complexity can occur regarding technical and business
aspects. The main technical complexity was in the implementation of the online payment

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system which was regarding fraud. Frauds can be easily happen in the payment process when
it is done digitally. To mitigate this complexity a secure payment gateway has been used
which was encrypted through 256 bit encryption. Also, secured antivirus programs has been
installed in the organizational computers to make it payment safe from the online attacks.
The main business complexity in this case was the stakeholder complexity as the
stakeholder created main problem in this case which was customers. In half of the cases there
was missing vouchers in the payments which created the main business complexity regarding
management. This problem was mitigated by proper management of the stakeholders and by
implementation of the digital technologies.
Conclusion:
From the above discussion it can be concluded that business process modelling plays
an important role in the business context. Here the case study of Reliable Finance Company
has been analysed and it has been understood that Reliable Finance Company needs an
improvement in their payment processing system as their current system for payment
processing is very much complex unnecessarily. In the discussion of improving the payment
processing first, all the stakeholders related with the project has been identified in this case.
Also, the scope boundaries has been identified. In the next step the processes required for the
project has been identified and discussed briefly. Following that changes in the business
process for improving the payment processing system has been identified and discussed
briefly. A process model has been also developed in this case for re designing the payment
processing system. The further discussion consists strengths and weaknesses of various types
of modelling techniques and in this report discussion has been also done on technical and
business complexities that has been experienced during the project. Also, ways for mitigating
those complexities has been evaluated.

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