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iLAB understands the careful balance your company must maintain between industry innovator and trusted brand.

iLAB Understands Banking

The customer’s connection to their bank has shifted. Individuals used to have relationships with their local tellers. After some time, ATMs became the interaction point between consumer and the bank. Today, consumers connect to their bank through the computer, and more frequently now, their mobile devices.

Banks are no longer just banks, they are IT companies. Everything is digital, including the way bills are paid and the monthly statements customers receive each month.

As with all other forms of technology, banks can no longer stand still. They must implement new solutions to meet the expectations of their consumers. If they fail to evolve, their competitors will steal their market share quickly.

For some banks, a major challenge is to successfully expand the reach of their organization to new clientele without investing in the costly brick and mortar expansion plan. The most efficient way of doing so is through investing in new and improved technology.

Despite this need to evolve, banks cannot afford to show weaknesses or faults to the consumers, which are expected to trust the organization with their valuable funds.

As a result, financial organizations are under extreme pressure, which must be met with an attention to quality unlike many other industries. Finding a partner in iLAB can be the difference between market leader and a company struggling to keep customers.

The Opportunity

One iLAB client was the perfect example of how a bank could drastically expand its area of operation without needing to build brick and mortar retail locations across the globe. By targeting areas where building banks would be inefficient, but customers still needed access to banking programs, they were able to utilize software based solutions such as Oracle Flexcube, Misys, Digiata, and a suite of custom developed applications to replace roles typically handled by bank staff.

When the client approached iLAB, it was facing strong pressure to evolve the way it interacted with its customers and expand product lines to meet the needs of new consumers. The changes came in the form of implementing new systems impacting the process for credit applications, a line of business generating the largest amount of revenue for the organization.

Adding these new changes would give their consumers more convenience and control over the funds in their accounts, streamline the process which consumers interact with their bank for significant transactions, and make it easier to add more customers into popular loan programs.

The Risk

The banking client served three core credit markets on a consistent basis: personal loans, home loans, and motor vehicle loans. Within each of those transactions, the bank was required to perform 3 streamlined, efficient functions. The origination process needed to effectively enter a customer’s information into the system, gather data from third-party credit monitoring, calculate a score, and generate either a denial or approval with a pre-populated contract.

The dispersement process is the next phase between the bank and the customer after the origination process was complete and an approval was generated. This phase would actually transfer money from the bank’s accounts into the accounts of approved customers.

Lastly, and most important for the client, the collection process would handle the repayments of funds into the bank’s accounts. This process would need to take into account the principal associated with the loan and the interest payment the customer would be charged for the loan.

Errors in any of these three phases could place the bank in high-risk loan investments or alter the transfer of funds in a way that would impact the bottom line negatively.

The iLAB Solution

The client-engaged iLAB on multiple fronts to solve the various needs their new business objectives created. Through careful consultation up front, and optimizing the development process the client already had in place, iLAB was able to seamlessly integrate into the operations of the client, begin work on their wide array of software solutions, and implement their iTEST methodology.

Consumer loans are a large revenue-generating channel for the banking industry. While these segments can be profitable, they come with risk for the organization. An essential part of lowering the bank’s exposure to risk is implemented in the application process. iLAB worked with the client to test new application software, which would properly collect all the essential data sets required to produce the contract necessary to execute the agreement. Utilizing test data sets would generate a wide variety of variables replicating information associated with consumers the bank would encounter.

By using this test data set, iLAB was able to ensure the test cases would generate the proper outcomes. Those who should qualify would generate an approval, and those who should not would be rejected. This was the first, and most critical step in reducing the organizations exposure to risk. By eliminating the chance of high-risk consumers getting access to credit, the organization increased the likelihood each loan would be repaid with the appropriate interest.

This step also created a baseline for the entire system which new developments, programming, and information requirements could be measured against. As new data sets were required from the bank or government oversight, the bank could ensure that the new systems met the baseline criteria before launching into production. This allowed for automated testing procedures to be put into place to run test cases on all future updates.

Today, banks are more IT company than a place to store your currency. As competition in the market becomes more fierce each day, the company who can successfully innovate first has the potential to gain market share.

When this iLAB client needed to evolve to compete, they trusted iLAB to make sure their solution worked. Their reputation rested on iLAB’s expertise and ability to thoroughly understand their core business goals, and execute testing which made those goals a reality.

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BANKING AND FINANCE

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