6x Productivity Boost of Retail Lending for a Bank
Loan Origination System development in a large Azerbaijan retail bank. Automation of loan origination processes with a six-fold productivity increase.
Executive summary
Client profile
Our client – further referred to as the Bank – is part of a large financial group. It has branches in more than 20 countries worldwide and operates in various regions all over the world: from Europe to Africa and Asia.
Challenge
Our client entered the banking market in Azerbaijan offering retail loans for individuals, entrepreneurs, and SMEs. With time, the Bank faced the necessity to improve the lending process speed, productivity, and efficiency. The best option for that was the automation of lending by implementing a new Loan Origination System.
Value delivered
With RNDpoint’s LOS solution implementation, the Bank improved its staff efficiency by 6 times. Loan applications can be accepted through various channels, including chatbots and partner systems. The decision on the application is made in less than a second.
The success story in detail
Business challenge
The Bank had about 300 employees working in its representative office in Azerbaijan at the time. The growth of the business in the region caused numerous growth-related challenges.
Our client experienced an increase in the number of loan applications, phone calls, and customer visits to the offices. This slowed down loan application processing and loan issuing for the Bank’s customers and was labor-intensive for its employees.
Business process efficiency needed improvement. The Bank aimed to automate the lending process by launching a loan origination system that would meet international quality and performance requirements.
Another challenge was to introduce innovative types of banking services in Azerbaijan. The Bank intended to offer the regional banking market advanced and analytics-driven banking services.
The ambitious plan was to implement instant loan decisioning, new standards of speed in loan disbursement, and multichannel customer servicing, including chatbots.
Our product, the digital platform ABLE Origination, won the intense and complex selection process. The Azerbaijan Bank appreciated the in-depth knowledge of our company in the field of lending and decision-making processes.
Implementation
After a series of meetings between our experts and the Bank’s representatives, three stages of the ABLE Origination platform were shaped.
The First Stage
Implied the automation of loan pre-approval. Our team automated the collection of loan applications from all available channels and the receipt of reports from credit bureaus.
A loan applicant should fill only a minimum number of fields in the application form to instantly get an initial pre-approval for the application, as well as additional banking offers. This more than doubled the efficiency of the Bank’s employees.
The Second Stage
Dealt with making the final application decision. This stage embraced the integration of ABLE Origination with the core banking system to receive client details and their credit history with the bank.
Our team carried out verification and underwriting process automation and made scorecard deployment. That enabled the Bank to provide every client with several personalized offers and increase the productivity of the Bank’s employees by 4.5 times.
The Third Stage
Included the loan documentation preparation and loan disbursement. It was aimed at further integration with the core banking system, including bank account opening and making a loan agreement, together with automated preparation of loan documentation.
The final testing of results of all the stages showed that employee productivity, in general, has increased by 6 times over, in comparison with manual loan application processing.
Result. The numbers speak by themselves
With the ABLE Origination platform implementation, the Bank significantly improved its staff efficiency and enhanced customer experience. The platform made application processing and loan disbursement convenient, fast, and personalized.
Cooperation with our team enabled the Bank to unlock new points of growth, such as:
- Six-fold productivity increase in a workplace.
- Loan applications acceptance through various channels, including chatbots and partner systems.
- Delivery of instant loan application decisions.
- Load testing on the development server recorded the performance of more than 3 thousand processed applications per hour. In an industrial environment, the performance will be 3-4 times higher.
