Published on 19-Jun-2012
Customer:
Bancoomeva
Industry:
Banking
Deployment country:
Colombia
Solution:
Business Integration, Business Process Management (BPM), Industry Framework , Service Oriented Architecture, SmartCloud - Foundation, Smarter Planet, Web Services
Smarter Planet:
Smarter Banking
Overview
Bancoomeva is a financial organization that is part of the Coomeva Group, which used to operate as a cooperative association for Colombian workers, with a long history of issuing credits to the unbanked population. Bancoomeva is primarily a personal banking company, with 90 locations in 40 cities in Colombia and a customer base numbering 300,000.
Business need:
Bancoomeva considers 2,000 loan applications every month. Its evaluation processes were handled through regional offices not integrated with the Columbian banking system. The institution had no protocols governing its loan processes, leaving each office to institute its own, manual processes that were prone to error. Bancoomeva lacked oversight into the process of controlling information flows, which increased its business risk and impacted the customer experience. To capture new markets and decrease risk and costs, the institution needed a more centralized, customer-friendly lending process.
Solution:
Bancoomeva deployed a business process management solution to give users and customers increased visibility into the loan application process. The solution provides automated ID verification. Biometric identification provides authentication within minutes. The solution allows the bank’s mobile loan sellers to connect to a central loan management system, and generates alerts when it detects bottlenecks. Sellers now meet with consumers armed with qualifying data. They tailor products to individual profiles, which increases closing ratios, decreases risk and increases customer satisfaction.
Benefits:
Reduces process time for granting of credits from 17 days to as little as 30 minutes
Produces an ROI of USD1 million annually, due to process efficiencies and shortened loan approval cycles, resulting in an increase in interest income
Replaces six centers for credit approval with one centralized management system
Case Study
Bancoomeva is a financial organization that is part of the Coomeva Group, which used to operate as a cooperative association for Colombian workers, with a long history of issuing credits to the unbanked population. Bancoomeva is primarily a personal banking company, with 90 locations in 40 cities in Colombia and a customer base numbering 300,000.
The Opportunity
Bancoomeva considers approximately 2,000 loan applications every month. Its loan evaluation processes, including documentation verification, risk analysis and credit approval, were largely decentralized, handled through regional offices not integrated with the Columbian banking system. The institution had no consistent protocols governing its loan processes, leaving each office to institute its own, largely manual processes that were consequently prone to inefficiency and error. In short, Bancoomeva lacked adequate oversight into the process of granting and controlling information flows, which not only increased its own business risk but impacted its customer experience. In order to capture new markets, differentiate itself and decrease risk and costs, the institution needed a more efficient, centralized and customer-friendly lending process.
What Makes It Smarter
Bancoomeva deployed an integrated business process management solution to not only provide its business users, but its customers as well, increased visibility into and control over every facet of their loan application and decision-making process. The solution provides a range of advanced, automated ID verification mechanisms to the institution. Biometric identification and direct access to Columbia’s National Civil Registry provides authentication within minutes. Supporting sales and risk management efforts, the solution allows the bank’s mobile loan sellers to connect via handheld devices to a central loan management system. The solution generates real-time alerts when it detects any bottlenecks hindering these and all loan-related processes. Now following a single set of automated loan processing procedures, sellers meet with end-consumers across their kitchen tables armed with qualifying data, like credit history and loan behavior. They tailor products to individual profiles and needs, which increases closing ratios and decreases risk for the bank, even as it increases customer satisfaction.
Real Business Results
· Reduces process time for granting of credits from 17 days to as little as 30 minutes
· Produces an ROI of USD1 million annually, due to process efficiencies and shortened loan approval cycles, resulting in an increase in interest income
· Replaces six centers for credit approval with one centralized management system
Products and services used
IBM products and services that were used in this case study.
Hardware:
System x: System x running Linux - Red Hat, System x: System x3200 M3
Software:
WebSphere Process Server, WebSphere Application Server Network Deployment, WebSphere Business Modeler
Legal Information
© Copyright IBM Corporation 2012 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States June 2012 IBM, the IBM logo, ibm.com, System x and WebSphere are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data and client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specific configurations and operating conditions. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.