Virtusa’s client, an award-winning private bank, was heavily reliant on manual, paper-intensive processes to manage an unstandardized loan application and approval process. This led to a poor customer experience that was rife with errors and also kept the bank from being a competitive loan provider. To overhaul its loan application and approval process, the bank worked with Virtusa to implement an end-to-end loan management solution built on Pegasystems digital process automation technology. The implementation digitized the client’s loan management processes and helped the client increase operational efficiency, drive revenue, and increase its compliance with regulations.
The ChallengeThe client, an award-winning private bank, needed to modernize its legacy business processes to increase operational efficiency, improve CX, and drive growth.
Its manual, paper-intensive, unstandardized loan application and approval processes resulted in:
- High turnaround times for loan disbursal (45+ days)
- Cumbersome physical storage and retrieval
of credit applications
- Error-prone manual checks of loan applications
- Overworked front- and back-office teams unable to handle more cases
- Slow response to changing market conditions
To reduce costs, errors, and turnaround times, the client needed a case management solution that put customer outcomes first while automating and simplifying processes.
The SolutionThe Pega–Virtusa partnership combined Pega’s out-of-the-box case management functionality with Virtusa’s domain-led capabilities in consumer lending, regional experience, and delivery expertise.
The solution simplified and automated loan application and approval processes and provided out-of-the-box reporting and audit trail functionality.
Working with closely the client, Virtusa:
- Obtained client feedback early in the build
- Demonstrated how Pega met end-to-end workflow requirements across the lending lifecycle
- Defined the stages and sub-stages, or micro-journeys, of a loan application case
- Captured requirements in Pega’s no-code, drag-and-drop environment to create flexible rules-driven models
- Used Virtusa InsightLive, built on Pega, to provide:
- Actionable, real-time insights
- Gamified development environment
- Rich reporting mechanisms
The client benefitted from an entirely refactored, digitized approach to their loan application and approval process. The implementation increased customer experience by removing friction from the customer journey, made the bank more capable of responding to market changes, and helped the bank be more compliant with regional rules and regulations.
Other benefits achieved:
- Reduced costs equivalent to $3.3 million over 5 years.
- Decreased turnaround time by 60% for loan case creation and disbursement
- A 15% increase in case volumes can be absorbed by existing processing FTEs.