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Business Process Re-engineering For A Leading
Financial Institution

How our business process reengineering for a leading MFI brought about quantum leap forward in their performance

Customer Challenges

The microfinance industry has become wholly customer centric and has been seeing a huge trend shift due to high-demand low-supply imparity along with high attrition rate of the loan seekers. In order to be sustainable and to achieve global competitiveness MFIs as organizations must have a business process and structure that are fast, flexible, low cost and consistent in delivering quality products and/or services. Hence they can easily adapt to cope with the dynamic business environment.

The challenges the customer faced in order to sustain the tide were

  • Too many iterations back and forth the field and branch for each stage of the loan processing
  • High turnaround time for loan approval which resulted in losing a potential loan seeker
  • Manual data/ document collection
  • Delayed verification process

Our solution

We provided the customer with a holistic solution amply aided with the latest technologies to ensure an immense growth in business.

Our new, process-centred reengineering is a concept of rethink and redesign of business processes in order to create significant improvement and most importantly to survive in facing challenges of today’s business environment.

Our reengineering created a radical design of the business process on what should be done, which finally resulted in quantum leap performance rather than just incremental improvements.

The Business process reengineering (BPR) process begins with the analysis of the organization’s mission, strategic goals and customers’ needs by the top management. The process concentrates on the organizations procedures that govern how resources are used to create products and services that meet the needs of the customer or the market in general. The process identifies, analyzes, and redesigns the MFI's core business processes with the aim of achieving dramatic improvements in critical performance measures, such as cost, quality, service, and speed

Business Process Reengineering

Business Process Reengineering is not a universal technique that can be applied to all firms, the process and the procedure. The nature of BPR projects in financial institutions differ from those of other organizations simply because financial institutions are more information orientated and service based.

Our time-tested loan portfolio management solution that has been continuously improvised over the decade has helped several financial institutions to manage their lending process seamlessly. It meticulously helps manage the business right from the day to day operations of lending processes to strategOur ic directions like demand forecasting and supply planning.

This cutting-edge tab based solution, addressed all of the customer’s challenges

  • A seamless workflow process was established.
  • It helps the customer manage Member sourcing, Branch Survey, House verification, Compulsory Group Training (CGT), Group Recognition Test (GRT), etc. directly from the field.
  • It provisioned for the data to be collected in both offline and online mode in the tab that the field staff could use on the move. This also ensured, all the data was available in the system and not spread across various medium
  • The credit bureau integration, bank integration and rule engine based verification module helped the details of the loan seeker to be sent across to the credit bureau for prompt verification and get the in-principle approval on the spot.
  • The indigenous solution for instant verification lowered the turnaround time drastically and helped the customer in engaging more leads
  • This instant data verification is powered by a strong backend that could handle heavy data inflow seamlessly
  • To embrace the country’s ongoing digitization drive, Adhar card integration is provided for easy mapping for Adhar data.

Business Impact

By bringing deep business understanding and technical expertise, our promise for business improvement was showcased as

  • The seamless workflow process reduced the 9 stages of loan approval iteration to 5 stages.
  • Drastically reducing the turnaround time for data collection to in-principle loan approval from 5 days to 10 minutes.
  • The automation of data collection ensured centralized data availability.
  • This solution brought about a massive increase in the customer’s business and their field staff productivity.

Workflow

process_ReEngineering_before process_ReEngineering_after

Before and After Business Process Re-engineering

  • The traditional process would take 5 -6 days for the credit worthiness check and loan approval process. After re-engineering, the system was able to process 100 times as many transactions at the same time

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