Industry

Near East Bank modernizes credit application process with IBM BPM

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No one wants to wait weeks to more than a month to find out if their credit application is approved. For the applicant, it can mean lost opportunities. For a bank, it’s lost business.

Near East Bank, a leading bank in the Turkish Republic of Northern Cyprus, knew that if it wanted to compete with larger banks that had moved to electronic processing, it would have to modernize the way it managed credit applications.

Seeking a way to automate

Near East Bank was managing its credit processes by hand, printing and writing on paper documents and sending them from branches to headquarters by post. A loan processor would review the documents page by page and then obtain the applicants’ credit history from The Federal Bank of Cyprus to determine whether the customer is creditworthy or not.

Finally, the loan officer would make a decision and sign the documents, then return them to the branch by mail. All in all, it would take almost one and a half months to complete.

Choosing and implementing IBM BPM

Near East Bank started researching business process management (BPM) software on the internet. Out of three providers the company considered, it chose IBM with the help of 32Bit Bilgisayar Hizmetleri Ltd. Şti., an IBM partner in Turkey. Bilgisayar Hizmetleri provided a demo of the software and showed Near East Bank how easy it is to create a business process. IBM BPM includes tooling and runtime components for process design and execution, along with capabilities for monitoring and optimizing work.

Near East Bank connected the IBM BPM on-premises solution to its core banking system and completed the migration to credit application process in just one month.

Company leaders liked the solution, because, rather than having to write pages and pages of code, the interface allows users to drag and drop to create a process. Near East Bank also chose to implement IBM Operational Decision Manager (ODM) to capture, analyze, automate and govern rules-based business decisions.

Making faster, more accurate credit application decisions

With IBM BPM, the bank’s developers spend far less time creating business processes or changing processes when the market or interest rate changes. Instead, they can focus on other projects. Near East Bank developers have used the IBM solution to create internal processes and rules for purchasing office equipment and supplies and group money transfers.

IBM ODM helps branch managers make faster, more accurate decisions. The system guides users to provide the required information and follow the correct next step. Previously a branch manager had to go to the loan officer at company headquarters to process a credit application. Today that same branch manager can authorize the loan, as well as make other decisions, such as granting a promotional interest rate.,

Ultimately, customers win when they find out the status of their credit application in a day or two rather than a month or longer.

Learn more about BPM for financial services success and how to accelerate digital transformation in the banking industry.

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