Automated Lending Software Streamlining Loan Workflow
Automated Lending Software
Misys FusionBanking Essence
2 PM, 1 BA, 4-6 back end developers
Qiwi, a large Russian financial and banking services group, decided to launch a new product: a credit card with a 0% interest installment plan. They wanted to make the new card available to customers across all of Russia. The planned card issue volume amounted to 1 million pieces annually.
Today’s lenders must offer digital-first products, fast approvals, and a world-class consumer experience. However, our client’s loan issue processes were highly manual. They required the employees to fill in around 100 fields into a system and running checks against external and internal databases for each applicant. Despite multi-level quality control, the procedures were slow and prone to error.
The bank group required a trusted partner to automate their lending services, integrate the new solution with their existing infrastructure, and facilitate their time-to-market. For that reason, they contacted OTR to create a comprehensive lending automation solution. Its main aim was to ensure seamless operation and faster client origination, reducing processing times and human involvement.
Solution and its key capabilities
OTR came up with a complex solution to automate loan origination and decision-making for all retail lending stages: from registering an application to loan issuing. The key capabilities included the following:
- Full-scale automation: from processing application to the card delivery
- Integration with geolocation and geocoding services
- Image processing for scanned documents copies attached
- Integration with third-party credit history agencies
- Ability to withstand peak loads and process multiple applications simultaneously
- Smart analytics based on the data gathered
- Automated loan agreement generation
- Automated reporting
- Integration with the Bank’s systems: core banking, processing center, decision-making system, and external gateways.
Our business analysts started with gathering data about the new product’s objectives and features. Based on these results, we moved forward with developing the key system and defining the integration points. During the development, we followed the Agile methodology. The well-thought development and implementation strategy helped reduce the project time and quickly adjust the ongoing development process depending on the results of the previous stages.
OTR implemented this project based on the FusionBanking Essence by Finastra (former Misys). We chose this platform as one of the recognized leaders in the international retail core banking systems. Our team identified 8 points of semantic data integration. Our engineers automated 26 business objects, 45 screen forms with data fields, and 118 processes based on the platform’s capabilities, formerly performed manually. The system was high-load ready by design: it would operate normally under any load and have a large margin of scalability and fault tolerance.
We integrated the system with external databases, including credit bureaus. It automatically collects detailed information on each applicant, accumulates the history of previous applications to other banks, and the results of previous applications. The system’s smart algorithms analyze information gathered and auto-accept or decline a loan application.
The final step was integrating the solution with the Bank’s infrastructure: core banking system, front-office, SmartVista processing center, and external payment gateways. Together with our partners from Finastra, we ran the closed beta testing, issuing several dozen of the first cards. With minor fine-tuning complete, the entire automated lending solution was ready within impressive 2.5 months.
The automated lending system made it possible to reduce the period of application processing to just two days. The integration of the FusionBanking Essenсe platform facilitated customer service and significantly improved their feedback. Performing most of the operations automatically, freed up on average 10% of each loan officer’s conventional working hours.
Made with a scalable approach, the lending platform can withstand almost any load. For example, now, at peak times, the pipeline processes two requests per second.
The platform facilitates loan processing across all channels: website, mobile app, banking agent system, call center, and partner network. We have set up an individual business verification process for each of them, fully compliant with the Bank’s and regulators’ requirements. The company can now easily reach the right audience across channels, a win for any lending provider.