Loan process improvement for more and satisfied customers – an Appway solutionThere is increased need for more thorough analyses of loans but pressure to reduce lead times and costs is ever-growing.The financial crisis has accentuated the need for more thorough and stringent analysis before giving loans. On the other hand growing competition and demanding customers constantly increase the pressure on lead times. To be competitive, Banks need to offer higher quality, while ensuring default containment and maximizing operational efficiency in order to guarantee minimal waiting time for the customer.Your loan processis central in generating revenue. But customers are lost because of excessive process times; first-time resolution rates are unsatisfactory and costs per transaction are too high. Loan processes are often neither standardized nor transparent. Documents are not uniform, filled improperly and with frequent errors. Pricing calculation, loan analysis and monitoring are paper-based, carried out ad hoc and in a time-consuming manner. Data is inputted several times in different systems and reliability and quality are inconsistent. Reliable information on lead times is missing and there is little possibility to track the process, making it very difficult to monitor and improve it within marked demanded response time.“For 80% of the banks first-time resolution rate and transaction costs are at best somewhat satisfactory”Source: Arthur D. Little research (2009)Our Appway Loans SolutionAutomated and guided loan processing is enabled. In the process all events, data and documents related to the movement of a loan file from request to activation are sorted, tasked, managed and tracked. The solution also provides a loan database to store loan-related data in a centralized and secure repository; it ingests and routes information for all major loan-servicing systems and organizes and electronically presents loan data to authorized end users for validation, implementation and review. To provide automation of the loan process from front-to-back the Appway Loan Solution automates the request, the approval, the pricing calculation and the generation of all loan contracts. All information related to these loans is then translated into reusable data for the handling and storage in other applications and systems (e.g. Core Banking System, CRM System, Archiving System). The Appway Loan Solution also provides monitoring and analysis of KPI-related information used for activities accompanying the loan process.Benefits
Increased revenue through shortened cycle times and enhanced deal closing
Improved bottom-line by eliminating process redundancies and reducing overhead costs
One system for everyone with secure and auditable document exchange
Greater customer loyalty and retention, thanks to improved speed and efficiency of your lending process
Compliance with regulatory requirements, quickly and accurately
Context diagram of the Appway platformThe solution architectureThe Appway Platform on which the loan process solution is built can be integrated with leading core banking systems, ERP systems and Databases. For example, the platform has already successfully been integrated with Avaloq Banking Systems, OLYPMIQ and CRM databases such as Windekis. The integration is carried out with Appway extensions or through an Enterprise Service Bus in collaboration with our partners.Best Practice exampleAppway supported the automation of the loan process of a Retail Bank in Switzerland with 350+ employees and 22 subsidiaries in 6 cantons. A 50 % reduction of the process time was achieved, increasing mortgage loans issued to more than 1500 per year. The solution is used by 300+ users in more than 10 different branch locations.
