Case Study

Reducing risk in commercial lending

Improved data insight, faster cycle times, and a better overall financial spreading process helped a global financing firm make the right credit lending decisions

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Who we worked with

A global financing firm that offers commercial loans, leases, and market finance solutions, with $15 billion in net earning assets and a network of 40,000 dealers.

What the company needed

A way to reduce its credit lending risk, and change they way it serves customers.

How we helped

Genpact, with expertise in both process transformation and financial lending, created an end-to-end financial spreading process featuring the consistency, triggers, flow, and agility the client needed to avoid risky lending decisions. And less time spent on data issues for the firm’s analysts means more time to focus on their customers’ needs.

What the company got

99% data accuracy, 40% decreased processing time for loans, 35% increased team capacity, and an analysis backlog decreased to just 5%—in other words, all the ingredients needed to make the right credit lending decisions and develop and maintain superior ustomer relationships that could have grounded planes, slashed false alerts, and saved $240 million. All in the first year.

Challenge

In the inventory financing industry, the key to making safe credit lending decisions is a financial spreading process that provides the right data at the right time from the right borrowers. But because of a sub-par capability, our client was exposed to extremely high risk levels.

Its customer analysts used inconsistent methods for collecting, spreading, and analyzing financial statement data, making it difficult to make informed lending or loan covenant remediation decisions. And because the team was short-staffed, the existing analysts had a backlog of more than 4,500 accounts, and customer satisfaction was declining.

Our client needed better data, faster cycle times, and an overall better financial spreading process.

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Solution

Genpact built a centralized end-to-end financial spreading process with consistency at its core. It contains specific guidelines on the data the analysts need from borrowers, and updated triggers that automatically signal underwriting follow-up. In addition, it contains in-built verification of the quality of financial statements, ensuring alignment with all loan agreement requirements and credit policies. It analyzes the flow-in reports generated by the software platform. 

After the success of the initial roll-out, Genpact broadened the solution’s capabilities, simplifying and streamlining covenant monitoring, due diligence, inventory operational performance analysis, and risk and data quality scorecards. 

Impact

With this streamlined, consistent, and comprehensive financial spreading process solution, the client has:

  • Improved data accuracy to 99%
  • Decreased processing time by 40%
  • Increased spreading team capacity by 35% on an annualized basis
  • Reduced client analyses backlog from 22% to just 5% in the first phase of the program alone

And the program has been so successful that Genpact is now using it to support eight more of the client’s sub-business units.

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