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Improving a Major Bank’s Consumer Loan Processing Scheme
Background:
A major local bank, faced two important issues in their consumer loan processing center: speed and quality of loan. The consumer loan processing center is bottleneck for organic growth strategy.
Solution:
Skha proposed several improvement steps to achieve business targets:
- Improvement in credit workflow and key resource productivity
Conveyor belt processing system was adopted. Work was streamlined and rearranged into several workstations. This released most of low value-added activities from its most critical resource: the credit analyst.
- Improvement in loan administration and collection unit
Specific information system modules for administration and collection were developed. Best-practice outsourcing system was introduced to overcome collectors’ limited capacity,.
- Integration of information system
Information system was adjusted and integrated to reduce administrative work, redundancy, and paperwork.
Result:
The cycle time reduced by approximately 60% - 80% (depending on loan products), while number of personnel could be reduced by up to 30%. New scoring system was developed which would reduce credit loss from 6 – 8% (deputy on product type) to below 4%.
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