Credit Factory

Running the credit pipeline

Credit Factory is a credit cycle that runs on an industrial platform, allowing for loans processes to be made more efficient through the introduction of standard terms and conditions as well as that of process automation.

Credit Factory Implementation

ABOUT

  • Reduces the length of loan application processes, including verification processes
  • Resolves complexities arising from constant loan portfolio growth
  • Allows for lending process/procedures to be developed simultaneously with increases in the number of credit specialists
  • Makes launching online lending services a smooth process
  • Reduces operational costs associated with the credit cycle
  • Optimizes credit staff working time
  • Equalizes the costs associated with processing loan applications from various customer segments
  • Enhances fraud detection measures
  • Provides real-time reporting on all aspects of the credit cycle

Credit Factory Components

PROCESS

  • Optimized credit processes
  • Upgraded decision-making model
  • Documentation to establish a culture with well-defined and understood credit processes
  • Business requirements necessary for each credit process
  • Credit module setup
  • Credit module testing support
  • Credit process reporting
  • Trainings for credit staff
  • Support during piloting
  • Workshop on how to manage credit processes

BFC approach to Credit Factory implementation

Credit process audit

BFC provides diagnoses and recommendations on:

  • Credit cycle
  • Decision-making model
  • Fraud identification tools
  • Credit module
  • Internal/external sources of customer data
  • Internal regulatory documents
  • Methods of financial and economic analysis
  • Analytical forms for assessing the creditworthiness of borrowers
  • Motivational schemes for employees in the underwriting department
  • Systems for operational reporting on credit processes, the loan portfolio and credit staff performance

 

This also includes trainings on approaches to credit process management and loan portfolio analysis.

Workshop on how to manage credit processes
  • Indicators and methodology for analyzing and assessing the effectiveness of credit processes
  • Examination of why loan disbursement plans are not fully-realized
  • Credit process management examples
  • Consensus-building for reaching management decisions
  • Workplan development that is in accordance with the overall business plan and strategies
  • Operational reporting template examples
Development of Credit Factory business processes and decision-making models
  • Development of a business process (Credit Factory concept)
  • Development of a decision-making model
  • Selection of fraud identification tools
  • Development of business requirements for credit process automation
  • Customization of a credit module (if MasterAPS is used)
  • Drafting of necessary internal regulatory documents
  • Development of a motivational scheme for the underwriting department
  • Development of an operational reporting system
  • Training of loan officers and underwriters on new business processes
  • Training and coaching of loan portfolio analysts
  • Support during the Credit Factory pilot
  • Pilot analysis
  • Recommendations for further process development
  • Consultations, business process adjustment, coaching

Potential gains

1-2 minutes

Decisions on rejected applications

54% faster

Loan application review

up to 64% faster

Decision-making

20% less

Credit cycle operating expenses

Qualitative effect

  • Significant reduction in the burden placed on underwriters and loan officers
  • Real-time management reporting
  • Customer data verification and the identification of potentially fraudulent transactions
  • Accumulation and proper storage of important customer data
  • Decision-making automation
  • Reduction in risks from errors
  • Implementation of credit management tools
  • Increased transparency (especially for data used in management decision-making)
  • Increased customer loyalty

Pricing

As BFC tailors each solution to our client’s needs, we do not offer a fully-packaged product. Instead, we work with our clients to create a unique solution that works for them.

The cost of services is greatly dependent on the number of modules to be included in Credit Factory implementation; however, we do everything in our power to provide our clients with the best possible prices and always provide the highest quality products and services.

Contact person:

Artem Bubkin
Risk Management Expert

We encourage you to reach out to us; we will be happy to discuss with you how Credit Factory solutions can best suit your needs.

We hope to hear from you soon.

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