Robotization of Credit Risk Assessment for banks
One of the TOP 10 banks in Eastern Europe didn’t automate one of the key stages of corporate lending process - credit risk assessment.
- At least five bank specialists were involved in the collection and preparation of registry monitoring; reserve adequacy assessments and the process of making loan decisions, while a significant number of routine operations were performed manually.
- The processing time of funding applications increased and eventually ceased to meet customers’ expectations and market requirements.
- A large number of manual routine operations, document management challenges didn’t allow the Bank to speed up loan processing.
- While the number of customers increased, the staff remained the same, which led to an increase in the request queue. In order to process all applications and make loan decisions in a timely manner, a two-fold increase in staff was required, that did not conform with the Bank’s strategy and current service level requirements.
and preparation
At the initial stage of the project, our team, together with the customer's representatives, standardized the entire business process. At the same time, the variety of incoming loan requests was reduced and brought to a single format.
UiPath was chosen as the most appropriate RPA vendor, which provides an intelligent and multifunctional development environment for automation in any industry. The UiPath platform interacts with other IT systems through user interface (UI), simulating the end user, unlike traditional computer programs that work through the API (Application Programming Interface) or the integration bus (Middleware).
The operations performed during the loan application review process were grouped as follows:
- Data Collection from various sources, electronic documents and information systems
- Collected Data Aggregation and Analysis
- Generation of credit risk assessment documents based on templates
Next, scenarios were developed for robots to collect required data and prepare Bank's internal documents required when reviewing loan applications by credit specialists.
RESULTS
- 50%The cost of employees decreased by 50%Robotization of credit risk assessment process allowed the Bank to avoid staff expansion, achieving significant savings. The Bank was able to plan staff capacity given the number of incoming customers’ requests and seasonality.
- 5 yearsLoan processing does not exceed 5 minutesAnother result of robotization is faster loan processing. Previously, the process could take an hour and a half, depending on the complexity of the loan request.
- 8 monthsThe payback period was
8 monthsThe payback period of the customer's investment in the project was 8 months from the moment the system was put into commercial operation. Today it is used to process all loan applications received from legal entities – clients of the Bank.
- Automated the following processes
- Search and collection of required formalized data in electronic documents of the Bank's information systems
- Loan Review Document generation based on the obtained dat
1 - Automated requests processingThe analysis of the Bank's interaction with legal entities revealed that e-mail is the most convenient form of submitting an application. Now a client just need to send a loan application to a specific e-mail address. Further processing of the request is done automatically by a robot.2
- Implemented rules for robotsOur Team created rules for robots that determine the execution order of requests from the queue. For this purpose, they identified key features, according to which each request is automatically assigned a certain priority.3
- Monitoring systemOur experts developed and implemented a robot monitoring system, that allowed the Bank to analyze robot errors and glitches.4
