Case Study

A roadmap to best-in-class commercial lending

How we created options that allow this commercial lender to win more business

  • Facebook
  • Twitter
  • Linkedin
  • Email
Explore

Who we worked with

A global bank with more than $700 billion in assets.

What the company needed

A roadmap to transform its commercial lending function into a best-inclass capability.

How we helped

We developed comprehensive solution options encompassing people, processes, and technology, each complete with cost-benefit impact statements.

What the company got

Multiple concrete solutions that will result in 30% more prospecting time for relationship managers, reduce time to close by more than 50%, and increase credit process efficiency by 40%.

Challenge

Close loans faster to meet best-in-class standards

In the commercial lending space, lenders will always lose out to nimble competitors, who avoid the time-consuming hurdles that relationship managers and prospects often need to overcome to close a loan.

Our client’s commercial lending division understood this dilemma firsthand.

And, while the company’s existing book of business was highly profitable, inefficiencies across the board hampered its ability to secure new customers. For example, a loan closing typically took much longer than best-in-class. Worse, because its relationship managers could only spend a small portion of their time on direct customer-facing activities, customer satisfaction was suffering.

Our existing relationship had earned our client’s trust. The bank knew it could count on our digital consulting, domain, and process experts to deliver a roadmap that would transform its commercial lending business.

Take a copy for yourself

Download PDF

Solution

Evaluate first, then present options

We used a five-step methodology to evaluate our client’s entire credit process — from prospecting to loan closing — and develop multiple solution options. Our proprietary Commercial Lending Smart Enterprise Process (SEPSM) framework made sure each option addressed metrics that mapped directly to our client’s business objectives, ensuring that the end-to-end process would be optimized with analytics and technology.

Figure 1: Genpact’s 5 step assessment methodology

View

The five steps

Step 1: Define quantifiable goals
The bank had three distinct goals: improve the effectiveness of its sales force in growing the pipeline, deliver a superior customer experience, and increase operational efficiency so relationship managers could successfully handle all new prospects.

We began by translating those goals into four quantifiable metrics:

  • Time spent by bankers on prospecting
  • Percentage of deals closed – the number of customers taking a loan after being qualified as potential prospects
  • Loan closing cycle time
  • Cost per loan originated

Step 2: Set baseline for current state
We manually collected data and conducted interviews to measure and then attach realistic targets to each of the metrics. This helped us understand the gaps and areas to fix. And for the first time, the bank gained baseline visibility into every stage and subprocess in its commercial lending function.

Step 3: Identify constraints
Here, we pinpointed 30+ factors across six distinct areas — inefficient credit process execution, underwriting due diligence, partially automated workflows, data duplication, roles and responsibilities, and process variation — that were keeping the bank from achieving its goals. To paint a full picture, we ranked each one of the 30+ factors as high, medium, or low impact.

Step 4: Recommend solutions
At this stage, we generated several comprehensive options covering the end-to-end commercial lending process. Each option featured an operating model, process, and intelligent automation components for a best-in-class transformation. Our recommended solutions included natural language generation (NLG) to automate credit memos, our artificial intelligence platform Cora LiveSpread for financial spreading, and robotic process automation (RPA) for a prospect-profiling dashboard. We also developed a model that showed our client the quantifiable impact of each recommended solution on the four defined metrics.

Step 5: Establish implementation plan and cost benefit analysis
Finally, we created a recommended implementation roadmap that works for each of the solution options. To make it easy to implement, the plan spans two years, and breaks high-, medium-, and low-impact components into six-month increments. In addition, we developed a financial impact model that allows the bank to calculate the cost and benefit of each solution, so that it can prioritize which to implement.

Figure 2: Solution summary

View

Figure 3: Quantifying anticipated benefits and business impact

View

Impact

Fewer hoops and more prospecting

With our detailed solution options, our client can expect to:

  • Increase prospecting time for its relationship managers by 30%
  • Reduce its time to close by 50%
  • Increase its credit process efficiency by 40%

Collectively, these will deliver a bottom-line annual impact of more than $20 million.

Visit our Banking and Financial Services page

Learn More