Situation at the Project Launch
The client is a rapidly developing digital bank focused on serving individuals and SMEs. It is part of a large financial technology holding company. The bank’s assets reach $202381. As part of its strategic development, the bank has set itself the task of increasing its loan portfolio for corporate clients and ensuring transparency in key business processes. Additionally, the bank is launching a new retail business direction.
To achieve these goals, the bank needs to modernize its lending, debt collection, and operational risk management processes. Previously, existing systems were not able to provide the necessary processing speed, efficiency in debt recovery, and operational risk control.
Assigned Task
The bank needed to:
- Accelerate the processing and approval of corporate loan applications to enhance competitiveness against major banks.
- Ensure transparency at all stages of the lending process, improving deal control and risk management.
- Automate the debt collection process for individual borrowers with the ability to classify clients and implement flexible collection strategies.
- Implement an operational risk management system that would allow timely incident recording and analysis while ensuring compliance with regulatory requirements.
Implementation
The RunRule Solutions team proposed the implementation of several systems: Loan origination, debt collection, and operational risk management.
Loan origination. The system was implemented in 3 months. It has become a valuable tool for bank employees, providing transparency and clarity in the application process. With the help of this system, the bank has streamlined the process of lending to corporate clients, simplified access to customer information and documents, and accelerated the decision-making process.
Debt Collection. It took 5 months to implement this system. It automated all stages of working with overdue debts of individuals – from pre- and soft-collection to hard collection, including cessions and portfolio sales. The integration with telephony made it possible to classify debtors more efficiently and create individual collection strategies, thus increasing the department’s efficiency.
Operational Risk Management System. The implementation of this system ensured the control and analysis of operational events, helping the Bank to identify and minimise risks in a timely manner. The solution contributes to the development of an internal culture of operational risk management among employees.
Achieved Results
The implementation of a suite of systems from RunRule Solutions enabled the bank to:
- Cut the decision time for each corporate loan application to 3–5 days, enabling competition with major banks that typically take 2 weeks to 1.5 months.
- Tripled the corporate loan portfolio within one year of implementing the system, while maintaining strong risk controls.
- Automate debt collection for individual borrowers, improving interactions and reducing overdue debt levels.
- Minimized future risk, thoroughly analyzing every incident from start to finish.