Компания CS

High Speed of Decision Making

Nowadays, loan products are in highest demand, and the most widely sold products on the market of bank services. In order to attract a customer who has a vast range of similar offers from different banks, it is necessary to simplify the technology of the decision making process and speed it up. All this must not be done at the expense of quality and value of the bank's loan portfolio.
Besides, a lot of banks find partners and agents at retail outlets to set up remote lending facilities and offices. All of the above factors require a completely new approach to the system of loan applications management, and enabling automated and semi-automated decision making technologies depending on the type of loan product, loan size and class of the borrower.

Unified system of lending process management integrated with all the sales channels

The system covers the processes of mortgage lending, consumer (retail lending), and auto lending.

Lending process in the system includes the following stages:
registering a loan application;

• estimating customer's creditworthiness;
• giving a loan;
• liaising with outside systems;
• working with the loan portfolio.

Using the Credit::eCSpert system allows to solve the following basic tasks:

• sorting out and speeding up the process of pre-lending workflow and making a decision on the loan application;
• formalizing and flexible setting of the business process, and enabling automated and semi-automated decision making technologies;
• automated decision-making based on the algorithm of pre-scoring and semi-automated decision-making involving back-office employees at the stage of accepting the loan application;
• the creditworthiness and the financial state of a borrower are estimated with the help of the integrated Scoring::eCSpert system or through an enquiry to the outside scoring system used by the bank;
• automating the process of opening accounts and making transactions in the Automated Banking System (ABS);
• automating the process of preparing and drawing up documents for the loan file (in accordance with the loan file compliance review);
• integrating the system with other banking systems and outside the bank systems (for instance, loan bureaus);
• controlling and auditing the processes in a centralized way;
• setting the system of rights and roles for the users of the system;
• setting up a multi-branch network of sales channels (including working with auto stores on auto lending);
• providing the possibility to search for and have access to the necessary information from any workstation (taking into account access rights);
• receiving various kinds of analytical reports.

Automating the process of opening accounts and making transactions in the Automated Banking System (ABS), and the process of drawing up documents for a loan file

In case a positive decision on the loan is made, the customer expects to obtain the money almost immediately. It is possible to reduce the period of so-called TTC (Time To Cash) through automating such routine operations as opening accounts and making transactions, drawing up agreements, a payment calendar, a questionnaire form, a manual, etc. The system draws up all the necessary documents on the basis of a pattern (in PDF format), which guarantees that it is impossible to alter the final version of the document on the one hand, and, on the other hand, speeds up the process of completing the loan file considerably.

Interacting with outside systems

Involves:

• search for data for preliminary qualifying of the borrower in open databases (loan histories, "blacklists");
• filing enquiries to the outside scoring systems;
• submitting the loan files to the back-office;
• exchanging data with outside systems (sending out loan packages, receiving payment packages).

Working with a loan file

Loan agreements and customer details (their own personal loan histories) are held on a unified database in the system.
In order to analyze the loan portfolio and the quality of the services provided by the bank a number of reports are used, among which are the following:

• popularity of different lending programs;
• efficiency of a retail outlet;
• sales performance (in numbers) among the employees of the bank;
• results of cooperation with a partner company;
• activity of areas, regions and districts;
• segmenting the customer database, their activity and profitability;
• controlling time limit for decision making and time period before giving out money;
• determinning the efficiency of sales, percentage of positive decisions/ granted loans vs. the general number of loan applications.

System of rights and roles

Great attention is paid to the possibility of setting rights and roles realized in the system. There are different settings for each group of users: rights to access information of different levels of confidentiality and to perform different operations in the system.

System Architecture

When designing the system, all potential problems with the quality of communication channels at retail outlets have been taken into account. Working via GPRS channel of a mobile phone is possible. In connection with all of the above, traffic between the customer and the server is fully optimized. Besides, reliable mechanisms for renewing the connection have been introduced. They guarantee that none of the data can be lost in case if the connection is broken or temporarily lost.
The customer questionnaire for loan application contains a great number of information fields. That is why when designing a system, special attention was paid to the convenience of entering information and the speed of processing the information entered. The same is true for the agent's workstation as they can be not highly qualified and/ or have few computer / system user skills.
Taking into account all of the above, the following system architecture has been realized:

• as workstations for agents at retail outlets and for loan experts at the head office of the bank a solution on the basis of a standard web-browser MS IE5.5, and higher with the connection to the server via the Internet, has been used;
• the Win32 - application is used as a workstation for employees of the back-office and managers;
• the server of the system applications is built on the basis of the J2EE technology with the use of the JBoss software;
• the database server of the system is managed by the Oracle DBSM;
• the system contains interfaces for transferring data to the ABS B2;
• the system also has an interface which allows connection to outside scoring systems.

The software of the system applications server has been designed so that it makes it possible to support the necessary level of scaling, supporting cluster configurations taking into account the necessity to balance the capacity and default resistance.
Basic verification of the data entered is done at the point when the information is entered into the application questionnaire, with no need to send the data to the server.

Plans for expansion: