Key Objectives
- Remedial operations for SB and ML featured several months’ worth of backlog, low productivity and high rework rates across all roles involved
- Redesign the process end-to-end, from Channels through to Loan Administration
Our Approach
- The entire remedial loans restructuring flow and relevant processes were exhaustively mapped in order to identify areas of process inefficiency relating to process structure, systems used, documents involved et. al.
- Analyzed productivity data and cross-referenced against portfolio characteristics and credit policy requirements to identify areas of potential “industrialization” of the process
- Particular focus was placed on handover areas between Channels, Credit and Loan Administration in order to align all units against specific, common guidelines and minimize reworks
- As an extension of the project we produced a full Credit Policy Manual for remedial operations
- Recommendations included:
- Establishment of a fast-track process for cases meeting specific criteria (covering > 65% of total pipeline) with no increase in financial risk
- Redesign of individual process steps, elimination of repetition of steps in Loan Admin and automation of specific tasks
- Establishment of clear descriptions of roles and accountabilities for every role involved in the end-to-end credit restructuring process
- OCTANE was then asked to provide project management / implementation support for the implementation of our proposals and recommendations
Impact for our Client
- Elimination of backlog within 3 months, reduction of average Credit workload by >50%, reduction of end-to-end process time from >50 days (including “idle” time) to ~15 days
