A Leading Bank Speeds up Loan Disbursement Process

A Leading Bank Speeds up Loan Disbursement Process

Overview

A rapidly growing Indian bank with more than 1.4 million customers and business size of INR 31 bn, faced problems related to group loan disbursement process in rural areas. The bank followed a manual and decentralized loan disbursement process, leading to problems related turnaround time, document collation and approvals.

With an aim to improving the efficiency of loan disbursement process, the bank entrusted Nividous for delivering a solution for the same.

Challenges

The bank’s group loan department faced various problems owing to poor internet connectivity and lower technological penetration especially in the remote areas. The entire loan disbursement process was being conducted manually leading to errors and delays related to approvals, vetting of documents, customer interaction, thereby affecting the efficiency of loan department.

Nividious team worked along with bank's business and IT team, on analyzing the current manual process to suggest a centralized automated business process management system for loan disbursement.

Solution

Nividous team developed a solution using IBM BPM that was being used as a standard by the bank for internal BPM. Nividous also integrated an interface for handheld devices i.e. mobile and tablet for remote bank staff to capture customer’s data and essential documents offline and synchronize it later with centralized server. The whole system was designed and developed by the team after closely working with bank’s business and IT team to ensure smooth implementation and execution.

Result

Owing to the application developed by Nividous, the bank was able to:

  • Reduce the turnaround time for group business loans process from 14 days to 3 days
  • Offer a quick acknowledgment to the end-customers regarding missing document, approval/rejection, improving communication and ensuring customer delight
  • Increase the overall business of Group Loan Department by 20%

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