DIGITAL INITIATIVES
Transforming the Loan Process Through Digitization
DIGITAL STRUCTURE
Digitization of Loan Process
The entire lending process has been fully digitized with particular emphasis on convenience of access and improved data quality. Customer information is digitally captured at the customer’s doorstep by our credit officers. The underwriting process, including KYC authentication and credit bureau assessment, is automated, leading to sanction as per the credit rules designed by the Board and in compliance with regulatory guidelines. Post-sanction, disbursement and loan document execution are digitized, leading to optimized timelines and improved customer convenience.
Digitization of Collection Process
Entire collection activities are fully digitized, starting with alerts being provided to the customer before the repayment dates, visits by collection officers to the customer on the repayment due date, and collection receipts issued instantly.
Digitization of Reports on Daily Basis
Internal reports and dashboards are available to the management, providing real-time data related to disbursement and collection. Management is also provided with end-of-day data from 131 branches on collections from clients as well as on deposits from banks. These can be reconciled, and quick action can be taken in case of discrepancies. Management knows the amount deposited in the banks or in the custody of a particular credit officer, which helps track the status on a daily basis. The loan application progress for each application is also available for monitoring by the management.
Output of Digitization
Digitization has resulted in savings in cost, reduced man-days, and reduced turn-around time in processing loan applications. Key outcomes include:
- Reduced Turn-Around-Time (TAT): Processing time reduced from 10 days to 2-3 days.
- Reduced Cost: Documentation reduced from 40 pages (4 hours of manual updating) to 10 pages (10 minutes of minimal manual updating). Credit bureau checks reduced from 2 working days to 2 minutes.
- Data Storage: Introduction of the maker-checker concept; digitized data and images are stored in the cloud, accessible anytime, anywhere, eliminating the need to collect KYC documents for the next five years.
- Mobile Accessibility: Demand reports are accessible on mobile devices, providing exact account details (outstanding amount, demand amount, OD status) anytime.
- Reduced Risk: Post-collection receipt generation allows management to track amounts deposited or in custody of credit officers daily.
- Staff Productivity: Management can track staff productivity by measuring collections, sourcing, and disbursement activities per officer accurately.