Business process management (BPM) framework for GIRO transfer in Malaysia

Abstract

Interbank GIRO (IBG) is the only GIRO transfer in Malaysia provided by Malaysian Electronic Payment Sdn. Bhd. (MEPS). It is an interbank fund transfer system designed to handle a high volume of low-value payment transmitted from the originating bank to another banks (receiving banks). Currently, IBG is adopting batch processing where the electronic fund transfer can either be executed by job scheduler or manual human intervention. Almost everyday, there is delay from originating banks in submitting the IBG files to MEPS. At MEPS, the extension of time will result in non-efficient services and incur loss to the organization. This in-efficiency service, thus impact the MEPS distribution processes to receiving banks as per MEPS‘s Service Level Agreement (SLA). Since the inefficiency caused by the originating bank, the alternative is for MEPS to reduce the processing time by streamlining and automating the processes at MEPS. This study identifies the effectiveness of Business Process Management (BPM) concept to solve the problem. Previous researches conducted have shown that it can solve some of the important key in monitoring, automating and improving the efficiency of the business process. A newly business process for IBG was developed to reduce the number of process, reduce number of resources, lower the risks of delay in submitting the IBG files to receiving banks and reduce the time for the whole IBG processing. To have a standard BPM implementation, a BPM framework is proposed to be applied by MEPS for IBG business processes. With this, it can cater continuous changes in IBG business process in future and achieve the organizational mission and vision.