RNDpoint’s Credit Decision Platform
Autopilot for Loan Origination Process
A satisfied customer is a loyal customer. While saving the client’s time, you earn the client’s loyalty in return. Clearly understanding those axioms, our client – further referred to as the Bank – came to the conclusion that a software solution is needed to automate the loan origination process flow.
About our client
The Bank is a part of a banking group and a global financial services provider. It encompasses over 20 credit institutions and financial companies operating across all key areas of the financial markets. The holding company is represented worldwide with offices in various regions from Europe and CIS to Africa and Asia.
The Bank’s business strategy was the continuous expansion into target markets in specific regions and countries. In connection with this strategy, new branches of the Bank appeared annually. When entering the new markets, the Bank offered a limited amount of services. After a while, the growing interest in the Bank’s services from its customers’ side resulted in the growth of staff and its workload.
With approximately 300 employees in its local branch, handling the growing number of loan applications, customers’ phone calls, and other activities was a tough task. To keep the employees efficient and their customers satisfied, the Bank’s management came to the decision to automate their business processes and implement a Loan Origination System.
The Bank’s management conducted a closed bid. As the Bank preferred an open-source solution, they only considered vendors without licensed software solutions. Equipped with reliable, open-source credit decision making systems in our armory, RNDpoint took advantage of the situation and the Bank’s requirements.
The Bank was familiar with RNDpoint due to previous software implementation at the Bank’s head office. That’s why, with our team’s reputation, we needed no approval or additional references.
Our experts helped the Bank to research the markets of Business Rule Management Systems (BRMS) and BPM engines. As a result, RNDpoint put their bargaining chip on the table. It was a custom out-of-the-box solution that embraces the front-runners of BRMS and BPM engine markets.
Solution: automation of loan origination process steps
Successful credit workflow automation implementation in the region could become the first step for further cooperation with other Bank’s branches. That is why our team placed its confidence in RNDpoint’s most reliable and time-tested custom software solution, the Credit Decision Platform (CDP).
CDP is RNDpoint’s out-of-the-box software solution based on:
- Angular as the front-end;
- Drools – an open-source business rule management system;
- jBPM – an engine for managing business processes;
- Java to build the server-side.
CDP is a powerful tool for managing the credit decision making process end-to-end. Its functionality allows the Bank to:
- automate the management of loan application processing logic;
- organize online monitoring and processing of loan applications;
- deploy new business processes and strategies with no need to interrupt the whole system;
- create and tune-up new integration points;
- execute the user role model (editing user access);
- protect processes from modification;
- safely connect external libraries;
- develop and edit processes and strategies with a user-friendly editing interface;
- export and import ready-made processes and strategies;
- ensure safe logging procedures;
- audit user activities;
- encrypt vulnerable data to support security standards.
Screenshots of the final product
Decision Module Component. The cherry on the cake
To crown it all, RNDpoint’s team offered their unique custom solution Decision Module Component (DMC).
DMC is an effective functional tool for testing business strategies. The module uses data from the industrial environment to analyze how changes in strategy or their separate conditions influence the Bank’s risks. The testing process does not affect the main system functionality.
With the implementation of DMC, the Bank received an excellent, effective tool for risk management.
The deployment of the Decision Module Component gives the Bank the opportunity to:
- analyze the probability of default after strategy change implementation;
- calculate credit portfolio risk ratio when strategies are changed;
- segment Bank’s customers according to various indicators;
- analyze the whole workflow effectiveness for bottlenecks after changes are applied, etc.
CDP with DMC – the chef’s dish for all tastes
Our business proposal was based on the fact that RNDpoint’s out-of-the-box solution – CDP – is a ready-made tool, requiring minimal costs for the Bank. Consequently, our price consisted of:
- integration work;
- document printing templates design;
- reference system implementation;
- design of strategies for decision-making.
CDP, with DMC implementation, gave a powerful thrust to the Bank. Without the need to increase the number of employees, RNDpoint’s credit conveyor improved the effectiveness of loan origination process steps manifold. In addition, our experts integrated the loan origination process into the Bank’s chatbot to further automate credit issuance.
Automation of the loan origination process in the Bank helped to achieve the following performance improvement results:
- up to 4,000 hourly and 15,000 daily processed loan applications;
- up to 20,000 hourly and 75,000 daily requests made by BRMS;
- about 30,000 processed loan applications and 150,000 requests made daily due to implemented system scalability;
- X7 growth of processed loan applications per one Bank credit manager.