ServiceNow Implementation for BFSI Operations – A Case Study on Vendor Onboarding Automation in Banking
90%
Reduction in Vendor Onboarding Delays
100%
Documentation Compliance
100%
Audit Visibility
An Overview
A mid-sized cooperative bank operating across three Indian states partnered with LMTEQ to digitize its vendor onboarding process. The bank lacked a structured way to onboard third-party vendors like IT contractors, ATM maintenance teams, and internal audit consultants.
In just 3 weeks, our ServiceNow consultants implemented a low-footprint, standalone ServiceNow onboarding tracker for vendors, automating multi-department workflows without disrupting the bank’s existing core systems.
This agile deployment is a showcase of a lightweight yet effective ServiceNow implementation for BFSI operations.
Client Background
The client is a scheduled cooperative bank with 80+ branches and a growing list of outsourced vendors. With rising operational complexity and regulatory scrutiny, the bank needed to improve how it onboarded external service providers.
They did not have an ERP, and their core banking platform offered no support for vendor onboarding automation in banking. The process was email-based, tracked on paper registers, and involved Procurement, Branch Ops, Legal, and Finance, each working in silos.
The Challenge – Manual, Untracked Vendor Onboarding
No centralized workflow
Tasks were manually initiated via phone or email, with no way to track progress. Procurement had no visibility into Legal or Ops approvals, leading to miscommunication and rework.
Missed compliance documentation
RBI guidelines require KYC, MoU, NDAs, and financial vetting for all vendor partnerships. Without a digital checklist or task enforcement, many files were incomplete or missing.
Delays in branch-level onboarding
Local branches waited weeks to get vendor approval for routine services like CCTV repairs or generator maintenance, impacting uptime and service quality.
No historical record or audit trail
There was no way to track who approved what, when, or why — a major issue during compliance audits.
The LMTEQ Solution – Simple, Fast, Compliant
LMTEQ delivered a 3-week ServiceNow implementation for BFSI operations, customized for low-scale deployment without integrations. The scope focused on:
Results – Measurable Gains in Under One Month
After the go-live, the bank achieved:
- 90% reduction in vendor onboarding delays across HQ and branches
- 100% documentation compliance as per the RBI checklist
- Full audit visibility into all vendor approvals and SLAs
- Zero new hires, all departments adopted the system without training overhead
- Repeatable, scalable model for future onboarding processes
This lightweight ServiceNow solution for BFSI filled a gap that their core banking system couldn’t fill at a fraction of the cost of large-scale digitization projects.
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Conclusion
LMTEQ delivered a focused, non-intrusive ServiceNow vendor onboarding solution tailored for a regional bank’s real-world needs. Without integrations or advanced modules, the system successfully enabled automated third-party onboarding in ServiceNow with measurable impact, ensuring compliance, accountability, and speed.
The project proves how the ServiceNow onboarding tracker for vendors can be rolled out quickly in BFSI environments, especially for institutions with limited digital infrastructure but growing regulatory pressure.
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