A large global banking client was seeking to transform the loan approval process, as it is notoriously cumbersome and slow, heavily reliant on manual data handling. The process was overly complex, resulted in prolonged wait times, leading to significant customer dissatisfaction and increasing operational costs due to the extensive need for human oversight and intervention.
Client Challenges
The client had the following challenges to ensure their loans are approved quickly
and reduce the operational costs. These included:
Lack of standardisation: loan approval process was cumbersome, and no TAT was
in place to process the requests.
Multiple stakeholders: the bank had more than 4 sub-units, each at a different
level of maturity and each has different TAT levels to approve and check the client
documents.
Manual Tasks: lot of individual are involved and heavily reliant on manual data
handling. Manual verifications limit the loan management process.
Engagement: the aims of the project needed to be communicated to all relevant sub
teams and managing multiple loan applications process loans quickly.
Expensive storage costs: multiple applications storing the same data at significant
cost.
Poor Customer Experience: A complex loan application process can lead to a
negative customer experience, decreased business, and a tarnished reputation.
Brickendon Solution
The client engaged Brickendon to advise and then implement an AI driven solution
including managing data changes and automation of substantial parts of the process.
The work included:
Automated Loan Processing: the solution handled loan applications directly within the
system and approved based on predefined criteria.
Enhanced Verification: Improved verification facilitates a proactive loan monitoring
process, considering a wider spectrum of data and streamlining the loan offering.
Process Efficiency: AI drastically cut down the time required for loan approvals.
Operational Cost Reduction: reduced the labor-intensive elements of loan processing.
Enhanced Risk Management: AI provides a more accurate and comprehensive loan risk
assessment analysing large amounts of data in real time.
Customer Retention: Improved process accuracy & improved customer retention rates.
AI algorithms used to enhance processing, achieving near-instant approval times post data
input and validation.
Client Benefits
The client had substantial benefits from the work performed by the Brickendon
team. The advisory and change programme were achieved within the timeframe and
budget set out in the project brief. These included:
Improved Customer Experience: Loan management software played a pivotal
role in this arena by implementing a user-centered design approach, ensuring
that the solution is user-friendly and intuitive and was well received by
cusomers.
Increased Speed: loan processing times dramatically reduced from days to
minutes and hours.
Enhanced Customer Satisfaction: Faster loan approvals increase customer
satisfaction and loyalty.
Cost Efficiency: Reduced reliance on manual processes decreases operation
expenses and improves profitability.
Scalable Operations: The bank can handle more loan applications without
significantly increasing staff or resources. Scalable support in loan volume
management offers advantages such as agility, flexibility, and the capacity to
manage high loan volumes