Mindtree's credit processing solution
For years, corporate lending has been considered too subjective and relationship-driven for automation. Banks rely on a combination of disparate IT systems, word documents, spread sheets and email to complete an approval process. Increasingly, both internal and external stakeholders are seeking a modern IT solution to enable banks to:
- Improve operational efficiency and reduce turnaround time
- Empower the RM to focus on consultative selling, rather than managing data
- Comply with stringent audit and compliance requirements
- Ensure predictability and transparency
Business Process Model (BPM) based approach
Most banks centrally manage their retail loan approvals by using a BPM-based approach. For corporate lending, however the general perception is that there are too many variants of the loan approval process in banks. Each product line and customer segment is assumed to have a customized process. Hence automation is percieved to be difficult.
However, in-depth analysis reveals that while there are minor variants in rules and approval levels, the underlying process is the same across the enterprise. Creative use of the BPM approach enables transformation in corporate loan approvals and facilitates automation of the current process, while retaining subjectivity in decision making.
Mindtree’s Credit Processing Solution (CPS)
CPS is a functionally rich, ﬂexible solution that empowers banks to completely transform their corporate loan proposal management – right from sourcing to on-boarding. Its BPM-based core comprises of prebuilt activities and rules that facilitate orchestration of the bank-speciﬁc process.
CPS integrates with the bank’s existing systems to provide a seamless, centralized platform for each stakeholder involved in loan approval. These systems include risk scoring engines, loan management systems, collateral management system, among others.
The scope of CPS spans across the loan appraisal life cycle, right from the time a loan request is sourced to when it is onboarded. This end-to-end comprehensive coverage makes it an ideal solution for all proposal information related needs.
CPS meets the expectations of all the stakeholders involved in the approval process. This is because banks get to:
- Improve operational efficiency and reduce turnaround time by:
- Deﬁning the process as granular activities and delegating, data entry activities to operations / admin team
- Enabling different users to work simultaneously on the same proposal
- Ensure predictability and transparency, by implementing LAs for each activity and providing comprehensive proposal status update to all stakeholders
- Empower the RM to focus on consultative selling, by consolidating all necessary data from different systems and providing near real time updates from loan accounts
- Comply with stringent audit and compliance requirements, by eliminating the need for offline conversations between stakeholders. This enables building an exhaustive audit trail
The value-added beneﬁts of CPS
- Adopts the best practice of a digital proposal document, to capture proposal data for customizing process ﬂow dynamically. The information captured is utilized for more effective downstream facility monitoring
- Integrates with all loan management systems, to enable the credit management group control and monitor exposures across customers and portfolio
- Provides tools like ‘upload from templates’ and ‘export to pdf’ to minimize change in user behaviour
- Deﬁnes rules that provide warning signals to the RM, early in the loan sourcing cycle
- Early warning signal in sourcing
- Reﬁned UI due to structured data entry
- Rule based covenants deﬁnition
- Contextual approval process and proposal data
- Individual and committee approvals
- Digitized and centralized proposal management
- Comprehensive audit log
- SLA and TAT reporting
- Eliminates offline interactions
- Checklists to capture status of offline activities at key milestones
- 360 degree customer view
- View of direct and indirect exposures