- Case study
A large bank enters the auto finance winner's circle
Capturing the checkered flag by transforming credit processes
One of the subsidiaries of a global retail and business banking brands.
A roadmap for transforming the credit process to a centralized operating model with a shorter time to decision and improved productivity.
Redesigned the operating model, enhanced auto credit decision analytics, simplified and optimized credit decision process, and raised dealer awareness.
Increased savings, reduction in time to decision, increased volume without additional headcount, and improved dealer experience through enhanced support.
It’s a fact that people love fast cars. But what they don’t love is a slow auto financing process. And that’s exactly what the auto finance division of this bank was struggling with. As a subsidiary of a global retail and business banking brand – with an asset base of $840 billion – the bank is known for its exceptional service, innovation, and expert financial advice. The bank offers a number of vehicle financing options, representing 35% of the market share.
The bank knew that a big part of attracting car buyers is the ability to give them a quick credit decision. But it was bogged down with inefficient credit decision processes that were resulting in lost sales and disgruntled dealers. Genpact had been a part of the bank’s “pit crew” for seven years and was highly experienced in auto finance operations, so the bank asked us for help transform their credit processes.
Challenge
The bank was in a dead heat on the auto financing track. With loan rates being relatively equal, the bank had to differentiate itself from the competition some other way – like offering quick credit decisions – in order to attract and retain customers. But the bank just wasn’t keeping pace.
The bank, after taking a critical look at its processes, recognized a number of issues:
Solution
As an integral part of the bank’s pit crew, Genpact was tasked with transforming the credit process and achieving three goals:
This eight-week transformation project began with a credit process diagnostic. We reviewed the value stream from the time the application was submitted until the time the decision was communicated to dealers. Then we implemented solutions that streamlined every point in the process.
Operating model redesign
Auto credit decision enhancements
Enhanced credit decision scorecards by adding new parameters and refreshing existing ones to reflect employment, home ownership, age, balloon payment, and more.
Process simplification and optimization
Dealer awareness
Impact
Once these improvements were identified and implemented, the bank was back in the race and soon pulling ahead to excellence with best-in-class operational processes. Long turnaround times and high operational costs were left in the dust as the bank began winning more business from dealers. As a result, the bank experienced the following benefits:
Thanks to Genpact’s experience in customer journey mapping and predictive analytics, the bank moved into the winner’s circle and is now taking a well-deserved victory lap.