Introduction:
One of the top public sector banks in India, one of our prestigious partner banks provide a wide range of financial services and banking products. It operates in 25 countries worldwide and has more than 9,500 branches throughout India. The bank offers various products for individual consumers - retail banking services such as savings accounts, debit cards, fixed deposits, auto loans, home loans, and insurance products. For business clients, it offers commercial banking services such as supply chain financing, trade finance, cash management, business loans, and mutual fund investments.
Challenges:
Our partner bank was looking to address inefficiencies associated with low value loan proposals (1 Crore). Every month, a huge number of renewal cases came in, which was tough for the bank to manage. The renewal process was done manually at the branch level. They were facing predominantly three problems: (1) resource and time-consuming processes; (2) routine activity not adding to revenue, and (3) skepticism about credit quality.
Solutions:
OPL automated the partner bank’s Digital Renewal process for renewal of existing loans/limits with predefined set parameters given by banks and with minimal manual intervention at the branch level. Minimal documentation, such as GST number and latest income tax return, was only asked for.
This process is now available for Working Capital Loan as well as for Term Loan Renewal cases.
Periodically, SMS and email were sent to inform borrowers in advance of renewing their existing loans.
Benefits:
- A quicker and more resource efficient process
- Low-cost alternative to performing routine activity
- Unbiased and accurate credit decision
- Reward good quality borrowers with a hassle-free experience
- Track the status of all renewal accounts with a single dashboard
- A seamless and digital process for borrowers