One of the biggest banks in Asia, which deals in SME lending businesses, was struggling with the higher turnaround time of SME loan process. Document-intensive SME lending processes require a streamlined document management system with greater archiving, indexing & retrieving capabilities. An automated system that streamlines process workflows and real-time monitoring systems to keep a vigil eye on KPIs so that TAT for loan processes can be reduced, increase productivity, and improve customer experience
Challenges Faced by Lenders While Processing the SME Loan
- There was no single system for loan origination and disbursement of large-ticket SME loans.
- Various teams like senior directors, legal, accounts, third-party vendors, etc. found it difficult to collaborate and loan disbursement TAT was too long.
- Comments from all team members were not recorded in the system and an audit trail did not exist.
- Seniors were required to first write in MS Word or MS Excel before they could paste things like tables, graphs, etc. into the Credit Appraisal Memo (CAM).
- Sometime the file sizes would become as big as 900 pages due to static and dynamic inputs, posing challenge for the approving parties.
Solutions Offered by Servosys Solutions for Processing SME Loan
- A solution was implemented using the Servosys product suite ServoStreams that streamlined the entire process of reviewing, modifying terms, sanctioning, and disbursing SME loans along with audit trails.
- The stakeholders can now make changes to the selected portions of the CAM/CAL or T&Cs through special controls provided and also leave comments for future audit purposes.
- The system generates a variable-length PDF that is optimized based-on industry type.
- A centralized system equipped with document management capabilities for tracking and monitoring was provided.
- Providing an interface to the customer, increasing customer experience and satisfaction.
Major Benefits Servosys Lending Software Solutions
- TAT of around 3 months is reduced to under 1-1.5 months.
- Lead generation and customer engagement up by 25% in 6 months.
- Clear visibility of an ongoing business, thus diminishing the risk of NPAs.