Our client, a leading financial services major, wanted to acquire new corporate loan customers while ensuring stringent risk tolerances. EvoluteIQ became a strategic partner to help the client specialize in corporate loans.
The Results
35%
Improvement in loan disbursal due to faster TAT and less conservative lending decisions
67%
Improvement in customer experience and returning customer loyalty
43%
Improvement in stable cost of capital and risk profile of loans under management
O1
The Challenge:
Boosting Loan Disbursement Rates Amidst Conversion Sluggishness
The client faced a concerning trend of declining loan disbursement rates, despite a healthy top-of-funnel. Conversions were sluggish, leading to applicant drop-offs. Root cause analysis revealed two pivotal issues: multiple process bottlenecks causing extensive delays and inadequate insights into applicants’ credit risk scores.
O2
EIQ Solution:
Process Consulting, Enhancing Credit Risk Scoring for Efficiency Through EvoluteIQ’s Automation:
EvoluteIQ initiated a process consulting engagement to identify critical “digital hooks” that could modernize the client’s risk assessment and loan disbursement processes.
At the core of our solution lies a sophisticated credit risk scoring algorithm. This algorithm was designed and implemented to enhance the accuracy of the scoring mechanism, thereby increasing the conversion rates for loan applications.
One of the pivotal aspects of our solution involved automating manual steps in the loan processing workflow. By configuring automation workflows, we drove significant improvements in accuracy and reduced loan processing times, creating a more efficient and streamlined process.
