Creating a Smart Loan Origination Process for a Leading Financial Services Provide in OmanDownload PDF
The bank is the leading financial services provider in Oman with a strong presence in Corporate Banking, Retail Banking, Investment Banking, Treasury, Private Banking, and Asset Management. The Bank has the largest network of 134 branches, 409 ATMs, 141 CDMs, and 4500 PoS terminals. Its international operations consist of a branch each in Riyadh (Kingdom of Saudi Arabia) and Kuwait with representative offices in Dubai (UAE) and Singapore. The client has been providing world-class corporate banking services in Oman, catering to the domestic and overseas needs of small businesses as well as medium and large corporate houses by offering a wide range of corporate finance products ranging from traditional working capital finance to project finance.
- Dysfunctional Banking System – The central banking system had several inconsistencies and poorly defined validation processes. It’s rigid architecture restricted customizations and change management process within the organization.
- Inefficient Process Framework – Lack of visibility across critical processes resulted in a high turn-around-time. Monitoring KPIs & SLAs and tracking transaction/record status proved to be a difficult proposition.
- Poor End-user Experience – Navigation through multiple systems resulted in significant delays and operational errors. Employee productivity also got affected due to work duplication and high document dependency.
- Operational Inefficiencies – Difficulty in compliance management and auditing resulted in a high percentage of erroneous data. Monitoring and tracking user performance was also a significant challenge.
- Disorganized document storage & retrieval – Difficulty in accessing documents and tracking their physical movement along with manual handoffs resulted in a high risk of documents getting misplaced and lost.
The bank’s corporate loan process was completely automated by mapping it to Newgen’s BPM framework, using the process modeler component with a single window interface across the entire process. The all encompassing solution induces significant process improvements across three core stages of the loan origination process.
- Customer Acquisition – After capturing the borrower details and attaching all relevant documents within the workflow through T24, TI, Moody, BSCB; the system auto generates the financial projections and ratios for preliminary evaluation. It then creates the credit proposal in a predefined format for further processing.
- Credit Approval and Processing – A rule driven engine sends the proposal for approvals/recommendations which can either be approved and sent to the next level or sent back for further clarifications. All clarifications/notes/recommendations are recorded in the workflow system.
- Post Acquisition Processing – After updating the workflow system with mandatory documentation from the customer, the CAD sets the Facility/limits and disbursement directly in T24.It resulted in improved monitoring and tracking capabilities as the status of each request gets tracked easily from system leading to improved customer service.