The impact of non-compliance to business processes : a case of a South African commercial bank

Abstract

This paper investigates the non-compliance of most Business Processes in the implementation of the goals and targets of commercial Banks in Gauteng South Africa. The Banks lose millions of Rands, as a result of staff not adhering to the Business processes. The non-compliance has a major impact on the successful implementation of bank strategy. The study explores why staffs do not adhere to business processes and establishes their level of understanding and maturity in terms of business processes. The study was conducted in selected branches chosen randomly in Gauteng Province. The analysis done was on data obtained from audit reports, bank investigative reports and financial loss data reports provided by different branches. Questionnaires were also administered to staff in the different branches to understand their own perspective. It is evident from the research that non adherence to processes have a financial and reputational impact on the Banks. Non adherence also has detrimental and adverse impact on achieving overall objectives of the Banks. The most common areas not adhered to were notably; identification and verification of customers; transactions not authorised according to laid down procedures; customers cards not cancelled immediately when reported lost or stolen. The paper then concludes with several recommendations to Bank Management and Strategy implementers on how to use technological methods to check and monitor these processes