Case Study

Digitization: Increase Credit Portfolio By Providing Online Loans

A mid-tier bank with operations across multiple states saw an opportunity to grow its credit portfolio by leveraging the increasing demand for online loans. Eager to enhance customer experience and streamline loan processing, the bank initiated a strategy to launch its online loan services, aiming to reach a wider customer base and reinforce its standing in the digital banking market.

Key Challenges

System Integration Challenge

Integrating the online loan platform with the core banking and credit risk systems was complex, necessitating secure data transfer via a reliable API layer for sensitive online data.

Regulatory Compliance

Aligning the online loan process with regulations like Fair Lending, BSA/AML, and fraud prevention required thorough legal and procedural compliance.

Fraud Prevention and Robust Loan Processing

The bank needed robust loan processing and credit risk evaluation procedures to prevent fraud, involving stringent credit assessment and comprehensive income verification processes.

User Experience and Processing Efficiency

The bank developed a user-friendly online loan platform interface, aiming to enhance operational efficiency and customer satisfaction by streamlining loan processing for timely and accurate decisions.

How Did EntityVector Help?

Online Platform development

Assisted the Bank in integrating the credit risk system, core banking system, and a secure API layer for online data transfer, and played a key role in the development of a user-centric online personal loan platform.

Risk and regulatory compliance

Implemented strategies for risk assessment and credit scoring within the digital framework while ensuring adherence to regulations like Fair Lending, BSA/AML, fraud prevention, and establishing credit risk management policies.

 

Strategic Alignment & Evolution

Worked on aligning internal stakeholders and efficiently coordinating with vendors. Emphasized change management to ensure a seamless transition. Tracked improvements in operational efficiency, customer satisfaction, and loan processing times.