A leading North American commercial lender ramps up loan processing time by over 30% with AI and cloud

For years, the commercial lender was fraught with its traditional lending system that followed a siloed approach for credit decisioning and loan management. Burdened by outdated operating models, manual data tracking, and unclear loan decisions, the lender ran the risk of being outperformed by digital-savvy competitors.

Virtusa collaborated with them to implement a streamlined AI-based solution that can accelerate the loan origination and servicing lifecycle.

  • The Challenge

    The commercial lender was looking for a comprehensive solution that could help accelerate and automate the complete loan management process and deliver a better experience to borrowers. Virtusa closely monitored the existing onboarding, credit assessment, loan disbursal, and repayment processes, and proposed AI enablement of critical processes and migration to a cloud-based lending platform.

    The key challenges:

    • Customer onboarding timelines of more than three weeks on an average.
    • High manual labor for loan administration.
    • A high error rate of more than 5% due to the manual data entry of over 80 fields from loan application documents.
    • No customer transparency throughout the lending lifecycle.
  • The Solution

    The commercial lender was in the need of a technology solution that would facilitate faster credit decisioning, enable collaboration across different teams, and reduce loan disbursal teams. To drive customer experiences and back-office efficiencies, Virtusa helped the lender migrate its lending platform to the cloud and implement AI-driven workflows.

    Features included:

    • Cloud-based lending platform that seamlessly combined CRM, loan origination, account opening, document management, and reporting capabilities.
    • AI components that were pre-trained on the structure of loan applications, supporting documents, and borrower financial statements to automatically extract relevant fields and accelerate data entry.
    • Natural language processing to process and generate loan contracts.
    • An analytics-driven dashboard to generate insights on the bank’s loan portfolio.
    • A centralized view for underwriters to add and review financial information for a borrower.
    • An end-to-end user view of the loan journey for borrowers.
  • The Benefit

    Virtusa’s comprehensive solution not only helped them establish a scaled and automated loan management process, but also guaranteed operational cost savings and productivity gains.

    The outcome was:

    • More than 30% faster loan processing cycle.
    • Over 15% reduced operating cost.
    • More than 60% reduced paperwork in the loan processes.

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