Transforming Risk Management: Farm Credit Mid America’s Journey

Transforming Risk Management: Farm Credit Mid America’s Journey

In today’s fast-paced financial environment, the ability to adapt and innovate is paramount. Farm Credit Mid America (FCMA) found itself at a crossroads, facing the need for a transformative approach to manage risk and improve operational efficiency. Enter ServiceNow, a platform that offered FCMA the tools to not only streamline their processes but also revolutionize their risk management strategy. As someone deeply involved in this transformative journey, I’m excited to share how FCMA leveraged technology to drive change and enhance transparency across their operations.

The relationship between business and IT completely changed because now there was something tying them together.

FCMA’s journey began with a fundamental shift from point solutions to a platform-focused investment. This strategic decision was driven by the desire to consolidate operations, enhance visibility, and foster a culture where technology empowered people. With roots in the agricultural sector, FCMA is part of a larger conglomerate that supports financial empowerment for farmers across the U.S., akin to the mortgage industry’s Federal Home Loan Bank.

The banking sector, built on trust and transparency, operates under the “three lines of defense” model. This involves a comprehensive system of checks and balances to ensure no gaps exist in risk management. The challenge lies in the disparate systems used, which often define similar concepts differently—like loans—and lead to fragmented data views. This is where FCMA saw the opportunity to innovate with ServiceNow.

ServiceNow’s platform was starting to spread everywhere because of Rebecca being this champion and being able to deliver products like digital services faster.

Rebecca, a pivotal figure in loan servicing at FCMA, recognized the potential of ServiceNow early on. With Fred’s support, a custom app was developed on ITSM to create workflow capabilities specific to lending services. This not only bridged the gap between business and IT but also provided a unified experience for stakeholders. The real-time audit logging capabilities of ServiceNow played a crucial role in ensuring compliance across hundreds of risk types.

As FCMA continued its journey, Rebecca’s promotion to overseeing all loan operations marked a new chapter. Her partnership with Fred strengthened, leading to significant improvements in first-line testing responsibilities. By leveraging ServiceNow’s capabilities, FCMA transitioned from manual testing processes to a more digitized approach, drastically reducing time and effort.

Now we’re detecting things that are wrong, changing the testing strategically and looking at things that are more strategic.

The pursuit of continuous improvement drove FCMA to standardize controls and improve business operations. This wasn’t in response to a compliance breach but rather an intrinsic drive for excellence. By digitizing workflows and embedding risk management into their processes, FCMA achieved a more holistic view of their risk posture. They shifted from reactive sampling to proactive detection, ensuring loans aligned with credit risk policies before booking.

This strategic shift not only optimized internal operations but also enhanced customer trust by providing more accurate assessments of loan risks. For FCMA, this transformation wasn’t just about improving internal efficiencies; it was about delivering better customer experiences and maintaining their role as trusted financial partners in the agricultural sector.

Looking ahead, FCMA’s success with ServiceNow sets a benchmark for the entire farm credit system. The potential to extend these innovations as a service across other banks presents an exciting opportunity for industry-wide improvement. By cutting costs and driving efficiency within their network, FCMA is poised to lead by example, showcasing how technology can be harnessed to strengthen financial systems and empower communities.

In conclusion, FCMA’s journey with ServiceNow is a testament to the power of collaboration between business and IT. By embracing technology and fostering a culture of continuous improvement, they’ve redefined risk management and set new standards for operational excellence. As we continue to witness the ripple effects of this transformation, it’s clear that FCMA’s story is not just about technology—it’s about building trust, enhancing transparency, and paving the way for a more resilient future.