The Client
As one of the largest financial services conglomerates in the European Union, the client offers an extensive selection of banking and financial services. Foreign exchange, credit cards, personal and business loans, loan insurance and stock brokerage are all services provided by the organization.
The Challenge
Extensive processing time for loan applications
Overall, cycle time to cash was being negatively impacted by the company’s lack of a single platform to take a loan from start to finish.
At the time, their process was slowed by:
- Labor-intensive, manual steps that needed to retrieve data from disparate legacy systems
- Frequent regulatory changes to protect borrower interests, data privacy and security was impacting IT system updates and processing time
- The process to evaluate the creditworthiness of organizations with precision, which was difficult due to the wide variety of financial structures and regulations
- Lack of integration that had created data siloes and operational inefficiencies
- Legacy systems that were not able to adjust to evolving technological advancements, shifting market conditions and customer expectations
To address these challenges, a robust and adaptable origination system and process was necessary. The client required that these systems have the ability to automate processes, ensure adherence to regulations, integrate data efficiency and furnish precise risk assessment insights.
The Objective
Implement a cloud-based loan origination application
In order to accelerate the cycle time to cash and improve the customer experience, HCLTech set to implement nCino, a cloud banking solution that helps to more effectively onboard clients and manage a loan’s lifecycle.
We recommended this solution to the client to help:
- Eliminate duplication of efforts by utilizing the new customer portal to avoid duplications in loan applications, thereby minimizing the amount of manual entry required
- Reduce the cost of loan origination servicing
- Enhance customer experience by providing customers with an improved digital experience that streamlines and elevates the loan origination process for small- and medium-sized enterprises
- Create standardized business processes, rules and exceptions to enhance the overall efficiency of business banking operations
- Launch the SB&A (Small Business and Agriculture loans) MVP (Minimum viable products) using a technology stack that provided the bank's business lending with a scalable, strategic platform that meets its needs today and into the future
The Solution
Implementation of the nCino platform optimized the flow of work and improved customer satisfaction
By facilitating the flow of work between customers and bankers, the nCino platform enabled the completion of customer applications from start to finish.
- After a loan is approved, the nCino platform transfers the servicing responsibilities for loan setups, standing order repayments and lending activities to loan servicing system
- nCino gave a single pane of glass view that was utilized for a variety of purposes by groups within the bank, including commercial lenders, loan processors and underwriters, relationship managers, compliance and risk management teams, operations teams and executive management
- Distinct access levels facilitated streamlined operations and effective cooperation among various banking departments
- Additional enhancements allowed the loan origination process to be initiated by customers via the customer portal. Loan applications, document submissions and loan status updates were conveniently accessible via mobile applications and online portals
- Enhanced transparency in the loan origination process gave customers improved communication, document monitoring and information regarding the status of their requests or applications
HCLTech assisted the bank in validating and verifying the nCino commercial loan origination application, beginning with requirements gathering and continuing through test design, test execution and application development to ensure a high-quality product.
The test team designed approximately 2,500 test cases to validate the quality, functionality and dependability of the client’s nCino software.
HCLTech supported the migration from their existing legacy system to Salesforce nCino, working throughout to limit disruption to business as usual.
The Impact
Increased originations and new accounts, plus productivity through automation
- 54% increase in commercial loan originations due to loan process automation
- 12% increase in rate of new account openings
- Automation via Selenium, Cucumber and Java for regression test cases led to a 60% reduction in manual effort for each release
- The client now has a single view for multiple stakeholders, including underwriters, lending support specialists, doc prep specialists and fulfilment specialists
