Home lending transformation

With Virtusa's Lending Origination expertise 

Globally, Home Loan Origination (HLO) is going through an extraordinary phase. The housing market is at its peak, citing an urgent need for the banks to transform and digitalize their origination process to stay abreast of the competition. The need to process and approve faster has never been more important than NOW. Customer needs are the key drivers of innovation in today’s lending market. Traditionally, a loan origination process takes a longer time for completion and is tedious with its reliance on paper-based transactions over multiple touchpoints. The in-person interactions resulted in higher costs, inefficiencies, unpredictable delays, and poor customer experience.

Today “Instant” Or “On the Go” is the buzzword from BNPL (Buy Now pay Later) to Insurance. HLO is no exception. It’s not just the “Digital Out Experience” but also the “Digital In Experience” behind the scenes that will ensure and enable banks to achieve their goals in this space. Virtusa, with its deep experience in the Home Lending Origination Transformation space, both within Australia and across the globe, will help you accelerate this transformation journey. The origination process can be completed faster with efficiency, resulting in superior customer experience, and saving costs. 

Home Lending Origination Transformation

Digitizing the origination process is all about streamlining the origination journey to offer customers a faster and smooth loan approval experience.

This removes the need to wait long hours filling lengthy applications and gathering information. It optimizes the process to facilitate instant approvals with conditions and transparency with consumers on their transactions and status. 

The transformation efforts from Virtusa helps collaboration between various departments in the lender's organization. Virtusa's capabilities around HLO are led by domain and technology experience and backed by a team of high-caliber professionals. Our HLO expertise is designed to impact lenders time-to-market positively and significantly improve the overall experience.

Loan Origination Solutions

Virtusa’s HLO capabilities

Drive Existing Business Optimizations & Create new Customer Journeys

Virtusa, with its consulting and advisory expertise in the Home Lending Origination Transformation space, both within Australia and across the globe, will help you accelerate the transformation journey. Our well-engineered solution design approach has already worked wonders across multiple implementations and has received stakeholders' rave reviews.

Key accelerators

  •  Know-how of industry best practices
  • Cognizance of AU local standards and specifications like LIXI
  • Knowledge of integration with popular applications like NextGen, DP3
  • Experienced HLO analysts, architects, and developers
  • Deep expertise in implementing digital transformation platforms such as Pega

Key capabilities

  •  Lending automation through orchestration of processes across existing systems
  • Intelligent decisioning for data-driven and guided lending processes
  • Digital engagement with streamlined collaboration and transparency

Key benefits for lenders

  • Faster 'Time to Yes' for loan approvals
  • Positive impact on the end-user experience and satisfaction
  • Significant increase in the home loan market share by value and volume
  • Increased customer retention, engagement, and acquisition driving revenue

Success stories

Leading Australian bank reconciles, refactors, and re-platforms mortgage origination process

The bank's on-prem multiple Pega applications approaching the end of the life were incurring excess maintenance cost, extended downtime, and increased cycle time. Virtusa redefined the client's customer journey. We performed an overall health check to identify key violations and assessed current state operations and technology capabilities. Virtusa's experts conducted database migration, upgraded the Pega application, and migrated the collections app to the cloud on AWS RDS.

  • $1.2M annual cost savings 
  • 50% increase in delivery of new initiatives 
  • 100% system stability and 99.99% system uptime 
  • An enhanced end-user experience by leveraging ASD

A leading bank in the UK transforms its Lending Origination journey

The client had no experience in the digital self-service origination space. The existing processes were manual and paper-intensive with a very low degree of automation and no STP. Virtusa as a strategic advisor, helped the client redefine the customer journey with an approach to migrate their existing process to a digital onboarding and offboarding branch-led origination. We helped build the front-end digital application with an omnichannel experience. 

Business Outcome:

  • ~25% increase in speed of decisioning  
  • ~35% reduction in the cost of the operations through digitalized app workflow 
  • 15% increase in new customer

Leading Australian bank transforms credit risk application and modelling

The client's credit risk application was labour-intensive, and implementing changes was cumbersome. The credit models had to be coded separately into the serviceability engine. Virtusa implemented a unique micro API-based solution hosted on Pega's Customer Decision Hub (CDH) to enable the analysts to run deals with different components quickly.

  • 50% faster time-to-market 
  • ~AUD 1M savings annually
  • Savings on FTE costs
  • Greater visibility into the credit scoring process
  • Provision to make real-time decisions collaboratively

Streamlining and simplifying small business lending processes of an Australian Bank

The client was incurring a longer processing time for business loans, and the TAT for approval was close to 4 weeks on average. Virtusa automated eligibility check, behaviour score, and servicing assessment. We enabled supporting unsecured and secured loans and decisioning on the smart/traditional servicing, loan amount, and interest rates. Virtusa ensured that the client could access the data required to process business loan applications and capture applicants' financials.

  • Reduce average time to yes from 20 days to < 24 hours
  • Reduce average funding time from 69 days to < 5 days

Speak to an expert

Contact us to schedule a demo.