RESTRUCTURING UNDERPERFORMING ASSETS
The client, a Romanian Retail bank with a network of over 200 subsidiaries needed to reduce the toxic assets portfolio
At the moment, too much time was used for files processing, the client approach was inefficient, and staff had unclear information regarding the process roles and responsibilities.
Increase the profitability by reducing the risk provisions related to underperforming assets.
The solution manages the overdue individual restructured loans and automates the entire loan restructuring application process, generating all working documents within the application and sending them via email.
It also facilitates the renegotiation of restructuring terms for a non-performant loan file, an extremely useful feature that saves time.
Information is gathered from the application, as well as from external systems.
The advisory component of our solution includes standardization of loan restructuring flows and applicable restructuring options, based on preliminary analysis of overdue clients.
PHASES - APPROACH
Defining business concept and creating the application involved the following steps:
- Business Analysis;
- Implementing and integrating systems;
- User Acceptance Testing;
- User trainings;
- Go Live support;
- 24/7 Maintenance.
The restructuring flow steps were integrated as different interfaces within the application. Specific interfaces were developed for every role in the flow, incorporating role-specific demands. The interfaces have fields that are completed or populated form the bank’s database. According to the user’s options, the flow is automatically guided towards the next logic step.
The solution automates work procedures, providing visibility throughout the business processes.
The management mechanism for requesting additional credit conditions and the additional system demands allow rapid collection of all necessary information for the electronic file preparation, while the notification system streamlines communication between departments.
After implementation, our clients were able to increase their competitive edge through high quality, proactive customer service and rapid responses to the market demands, while ensuring effective risk management.
Reduced the processing time by 60%
Reduced the process cost by 70%
Transparency and increased flow control – all cases can be monitored
Reduced the assets-related provisions by 5% after the first year