LENDperfect Retail – Case Study
Leading universal bank in Jammu & Kashmir automating their Saral Loan process
Solution Provided
LENDperfect Retail – Loan Automation Solution
An advance end-to-end loan automation solution that allows you to manage the whole lending process (Application processing, Underwriting, Sanctioning, Account generation, and Collections) under a single unit.
KNOW OUR CUSTOMER
A prominent financial institution existing as a universal bank in Jammu & Kashmir is a sole private sector bank that is designated by the Reserve Bank of India (RBI) to carry out banking business for the Central Government. Founded in 1938, the bank today generates a revenue of over INR 7,000 crore, has a network of 917 computerized bank branches, 1239 ATMs and 25 Cash Deposit Machines across the country.
ISSUE FACED
Based on the client’s agreement and partnership with the Jammu & Kashmir government, all state government employees hold salary accounts with them. The client also provides retail loans for these employees to avail for their personal needs. Saral Personal Loans are a part of this provision and our client, over a period, found it hard to assess and evaluate the employees with their legacy system.
The bank was unable to arrive at a wise decision on applications due to limited insight into the applicant’s eligibility for availing a Saral Loan. The client’s demand was for a comprehensive Loan Automation module for Saral Personal Loans that could incorporate all business rules and outperform the manual assessment process. The client also expected to lower the turnaround time (TAT) and additional expenses involved in processing the loan manually.
HOW DID WE SOLVE THE ISSUE?
Understanding the bank’s requirements and their need to facilitate the lending process, SysArc recommended a fully digitized product - LENDperfect for Retail Loans. A system, designed with strong network integrations, could easily be integrated with the bank’s mobile application to fetch all necessary details and generate an application.
LENDperfect Retail module is a comprehensive and dynamic solution that can be customized as per the bank’s business rules and requirements. The system would automatically collect all details from the mobile application and assess the applicant based on defined eligibility criteria to make a well-informed decision.
Along with our Saral Loan Module, the client was also provided with a few additional features to enable them an end-to-end automated solution:
- Auto-fetching of salary account details
- Auto-generation of customer profile and CIBIL Report
- Dynamic creation of Appraisal Note
- Auto-decisioning of application
Product Efficiency
A process that required more number of resources and took a longer loan processing time was completed in just a few clicks using LENDperfect. The product was easily integrated with the bank’s mobile application and the system auto fetched applicant details for generating the application. Further which the system, in just 4 clicks, assessed the applicant as per the bank’s set of eligibility rules defined in Product Setup. Our product was able to provide a 360-degree insight into the applicant’s profile for our client to reach at a strategic decision. Post assessment the application is either auto-rejected or auto-accepted if accepted the application is then pushed for sanction. The loan application is sanctioned and disbursed using our product within 15 minutes.
Received Rent Collections (in 8 months)
INR 400 crore
PROGRESS BY NUMBERS
RESULT
Previously, using the earlier product, our client took a day to process their loans whereas with our LENDperfect this was achieved in just 30 minutes. Post-implementation of the module, there were approximately 40,000 applications processed in the last 8 months out of which 16,000 applications were approved resulting in the disbursement of INR 400 crore. With an effective assessment process, the bank has formed zero NPAs and are expecting to achieve a target of INR 2000 crore by March 2019.