A Greenfield Bank Adopts Servosys’s Digital Platform For Micro Lending, CASA, Retail Loans And Other Functionality
The Client’s Story
“Having a very scalable and unified platform to deploy and streamline our core processes like Micro Financing, Retail Lending, Liability Account Opening all together, is really a game changing idea.”
Overview
12 Times Reduction In Transaction Time : The first journey delivered on Servosys platform was that of Microlending as this new bank was once having this line of business their only bread and butter. It used to take 20-21 days a JLG (Joint Liability Group) loan to get disbursed. The longer duration of time was primarily due to the fact that microlending markets are located in the rural parts of the country where even data networks do not exist. Enter Servosys, the complete LOS journey of the new-to-bank and existing customers, starting from promotional meetings to disbursement was automated and made completely paperless. The key takeaway is that there is no paper accepted by the bank from the prospects. The data is extracted automatically from the ID cards and even the contract documents are auto-generated by the solution that was provided by Servosys. The Turn-Around Time or TAT reduced to 1.5 day for the new customers on average, leading to speed up of process cycle time of around 12 times! Likewise there were gains observed in existing customer TATs as well.
More than 5000 Tablets are given to the feet-on-street who operate the Microlending solution in Offline/Online modes as required based on availability of the data network. The steps of the process automation are executed from the Tabs which lead to higher penetration of the bank into the remote areas as well. The entire cycle from promotional meetings, document processing, KYC, Biometric verification, customer onboarding, house verification, mandatory group training & tests, contract generation, disbursement, etc. all happen on the Tables. The Senior management team keeps a watch on request processing TAT and customer satisfaction figures in real time.
On realizing the power of automation, the bank was quick in asking for automation of other functionality that a growing bank requires to increase sales and profitability. What emerged next in automation is now a benchmark in itself. The following are some of the areas that were automated next and the Tablet App has become a big success story.
- Current and Savings Account Opening using Tablet / Mobile App.
- RD sourcing for Retail customers using the Table / Mobile App.
- Fixed Deposit sourcing for Retail customers.
- RD sourcing for Micro Banking customers.
- Customer KYC.
- Micro Business Loan sourcing.
- Ex-PM Yojana sourcing.
- Pre-approved Loan sourcing.
- Home insurance sourcing for bank customers.
- Trader Loan sourcing.
- The bank went on to give multiple responsibilities to their field executives to increase their productivity once the speed was achieved already.
Major Benefits
- 12 Times Reduction In Transaction Time
- Established control over gross NPAs
- Built competitive advantage through truly paperless processes
- Tens of thousands of loans are dispersed per day
- Achieved triple digit growth in net profit
- Expanded operation to many new states
- Reduced TAT from earlier ~20 days to 1.5 days