Enhance loans processing with enterprise content management

By David Arni, Industry Solutions Manager EMEA

Financial institutions are experienced in delivering automated, straight-through processing of data-intensive business processes. However, many real-world processes, such as loan and mortgage origination are content-intensive and require efficient, enterprise-class systems to automate document capture, document workflows and correspondence management. Retail banks can further improve process efficiency, cost control and customer loyalty by integrating with other systems to collect existing structured and unstructured data, capturing paper-based content digitally and delivering a rich, highly personalized customer experience.

Solution Overview

Enterprise Content Management solutions from Open Text solve many of the process based challenges by adding capabilities to support the most effective use of all enterprise information resources. To address the problem of time-consuming paper handling and manually intensive processes required to manage a loan, it's important for organization to establish a clear Enterprise Content Management strategy. Incorporating document processes into business processes is not a new challenge to banks, but nearly one which hasn't been tackled successfully with a standard approach. By digitizing content early and creating digitized loan folders, banks can accelerate and potentially increase their loan sales production and closure rates as well as enhance customer communications throughout the loan lifecycle.

A Step by Step Solution

In a digital mailroom solution all incoming document oriented data sources on paper, fax, email are captured, digitized, analyzed and then forwarded to the next process step electronically. This means that a series of tasks can, and should be, automated. Reconciliation with databases, plausibility checks, and other functionalities like collaboration support for exception handling can also be incorporated.

Once a loan application is completed, the Workflow Management System produces a task list for the loan officer, distributes loan and task requirements to the appropriate employees, prioritizes each task and keeps track of each tasks status until completion. People and process are in synchronization thus processing more loans. The Workflow Management System allows multiple users to perform parallel activities on a loan application. It automates key tasks, tracks process cycle times, and obtains qualitative management information for setting and validating loan production goals.

In addition to a digital mailroom, a digital loan file provides further transparency in customer communication. The digital loan file allows multiple clerks to access a customer folder simultaneously. Furthermore the ability to easily search for documents online and the elimination of the need to duplicate credit files facilitates daily tasks. Loan officers can see the interdependencies between accounts, customers, and credits more easily and, as a result, make accurate decisions faster. In the case of a clerk's absence due to vacation, sick leave, or staff turnover, all digital credit files can be easily reassigned and customer requests can be handled without interruption. The admin team is more motivated because they spend less time on tedious, manual tasks, and more on customer care. There is a higher degree of customer satisfaction and retention due to faster service and more accurate information provision.

Other Solution Advantages

Integration with existing banking business applications is important so that loan officers can work in their familiar environment. Open Text Enterprise Content Management solutions are based on open standards and common technologies that can be integrated into existing customer environments. Especially integration in SAP Banking applications like CRM or Consumer Mortgage and Loans is a proven solution for many existing customers in Europe. This improves the benefit and cost optimization of the solution further as loan officers have access to all relevant documents directly from their SAP Banking environment and workflow processes are fully integrated there as well. Workflow processes can also be extended beyond the banking application to the web or Microsoft Outlook to perform for example, approvals for the next process step.

The finance industry is increasingly under pressure to meet legislation and legal compliance directives from the EU. How does Open Text Enterprise Content Management help you with this? Behind the above described solutions digital mailroom and digital loan file is the Open Text Enterprise Archive system that stores all digitized documents and maintains an audit trail of the business processes. With the Open Text Archive System all data and documents are stored legally and securely, thus fulfilling legal and compliance requirements for SEC 17.4a, DOD 5015.2, Solvency II, Basel II, PDI DSS etc.

Benefits

Scanning, digitizing and forwarding of all documents electronically within a digital mailroom can save one or two full days in processing time. Seamless integration with existing banking environments during workflow processes and with the digital loan folder optimizes internal and external business steps enhancing customer service levels and information quality. Ensuring compliance and providing instant access to the relevant documents throughout the organization - both for daily use and in the event of an audit request, reduces process timing, operational costs and provide full legal compliance.

Next Steps

Please contact your nearest Open Text office for further information about our solutions for loans processing and to have the chance to talk to one of our customers who is already benefitting from these solutions.

Or send us an email to: financialservices.emea@opentext.com For information on other Solutions please click here: Open Text for Financial Services or for EMEA specific information go to: financialservices.opentext.com