Case Study :: Credit Approval System
Overview
Client's need was to manage the approval process of credit applications received. The existing system comprise of faxing the credit application manually and then processing it in a desktop application. The whole process involved a lot of manual steps which naturally transformed in to lots of inefficiencies.
The key problems faced by the client were summarized as below:
Applying for a new credit involved filling up the application form in person and faxing them to client’s office. Manual faxing was increasingly getting difficult with the increase in the number of applications on a daily basis. Client’s office received hundreds of faxes daily which were very cumbersome to process.
The approval process itself involved a lot of communication back and forth. Sometimes the application lacked critical data, other times information was completely wrong. Hence, the staff processing the application had a hard time tracking each application and following up it with required data.
Occasional changes where always natural during and after credit was approved. This process was again manual which required the company’s staff to review and validate all information. Once they validate new information, it was then entered into in-house software. This was again very cumbersome and involved a separate team to handle such.
In many cases, the credit applications were from existing customers with a previous credit history with the company. In such scenario, it was not necessary to apply for credit with new credit application format. Such applications could provide minimal data and can be processed very quickly. There was no way client can process such applications hence it was loosing some amount of business.
These and many other small problems lead the client to a decision to create a completely automated credit approval system.
The Solution
The solution comprised of a three tier web based application with different areas (or sections) for customers to submit mortgage application and for the company to manage the application processing.
In most of the cases new credit application were submitted by Doctor’s office for their patients. Hence a secure area for managing doctor’s account was created. This account area helped the doctor manage following aspects:
Submit a new credit application (for any of their patient)
Track the approval status of application which are already applied
Submit an account change application (from approved application)
Track an account change application
Submit pre-approved applications
Track pre-approved application
Update profile
Create users to manage the account
Direct helpdesk to post any queries
Secondly, a feature rich corporate account area was created where the credit processing staff can process credit applications, top management can manage multiple users, view historical data etc. The major features or corporate account area can be summarized as below:
Manage account users and their privileges
Manage new credit applications
Manage account change applications
Manage pre-approved applications
View/Update communication log
Export approved accounts in *.xls or *.csv format for further import into desktop application
Manage help requests
Create/Manage new doctor accounts
Project Highlights
Extremely user friendly interface.
Thin client solution with 4 tier development architecture to ensure application is flexible enough for future changes.
Automating credit approval engine to ensure accounts with relatively good standings are immediately approved.
Robust data validations to ensure applications are received only with accurate data.
Complete flexibility for users to enter account information any time. Process of data input and submission where made separate to allow convenience to doctors.
Development was done with practical insight. The whole system was made partially automated against full automation. Hence the staff was quickly comfortable with the application and remained in full control.
Role based user management in admin means top management stays on top with statistics and core issues, supervisors solving day today issues and regular admin users working on a daily basis to process credit applications.
Conclusion
Client was fully satisfied with the fast turnaround and efficient solution delivery of Fourth Media. The full solution was designed, developed and implemented in 4 months. The system processed 500 credit applications in just two weeks. The work flow was extremely smooth and the whole team was happy and satisfied. Nevertheless, for Fourth Media team it was an extremely challenging and stimulating solution. The next step is to automate the process of repayments.
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