ambit retail banking

AMBIT RETAIL BANKING
Loan Origination
AMBIT LOAN ORIGINATION: A NEW APPROACH
A current area of focus for many banks is loan
origination; a part of banking still typified by
fragmented, paper-based, largely manual
activities, and characterized by slow, unresponsive
service for customers; a high error rate; and
potential compliance issues for the bank.
Ambit Loan Origination (LO) enables banks to
address this outdated situation. It is a processdriven solution which automates and supports the
entire loan origination cycle, from the initial
application capture through to credit scoring,
approval, customer acceptance, documentation
and final loan booking.
The benefits of implementing the system are
significant: a higher level of productivity, reduced
costs through the automation of previously
manual tasks, and improved oversight of the loan
origination process. And since the bank is able to
turn around loan applications faster and handle
queries more efficiently it also results in a much
higher level of service for customers.
Similarly, as considerably fewer resources are
needed to move existing loan applications
through the system, staff are freed up to
concentrate on bringing new credit products to
market in a timely fashion to help the bank
maintain its competitive position.
Ambit LO is one of the components within the
Ambit Enterprise Banking Suite (EBS) of
applications.
Ambit EBS is a front-end platform for retail
banking that integrates the multiplicity of
information and processes relating to customer
sales, service and transactions in a seamless
interface. Delivered via modern SOA standards,
Ambit EBS helps banks leverage information from
existing enterprise applications, data and
processes while supporting the flexible business
processes needed for banks to respond quickly to
changing business conditions and evolving
customer needs.
Additional Ambit EBS components which can be
deployed to complement Ambit LO include:
• Ambit Customer Service Platform (CSP)
• Ambit Branch Teller Platform (BTP)
• Ambit Online Banking (OB)
Integration & Business Process Management Layer
Infinity Process Platform
THE BENEFITS OF THE AMBIT LOAN ORIGINATION APPROACH
Automating the entire loan
origination process while retaining
flexibility.
The loan origination cycle in many banks is a
time-consuming, largely manual procedure involving
a number of departments and redundant activities.
These outdated processes do more than slow down
the loan outcome for customers; they invite errors,
can cause compliance issues and, because of the
considerable resources needed to move existing
loan applications through the system, they hinder
the speed-to-market of new credit products.
Coordination across functional teams, branches and
organizational hierarchies is fragmented and
frequently involves disparate systems; customers are
required to provide the same information
repeatedly in multiple applications; while misplaced
documents and missing information contribute to
processing bottlenecks that delay the loan
application decision.
and compliance risks incurred because of the
manual steps within the end-to-end processing.
Ambit LO provides high levels of automation
throughout the loan origination cycle to improve
productivity and reduce costs. Based on
user-defined, highly configurable business
processes and a parameterized product definition
capability, Ambit LO delivers the flexibility that
allows the bank to adapt products and processes
to meet changing business requirements.
User-configurable checklists, process flows,
scorecards, pricing, asset valuation, document
automation and business rule definition all add to
the bank’s ability to turn around loan applications
faster, with a higher degree of accuracy, better risk
assessment, improved compliance and greater
control over pricing.
The schematic on page 3 illustrates the specific
benefits delivered by Ambit LO at each stage of
the loan origination process.
Many banks struggle with their existing loan
origination infrastructure and the consequent costs
User-configurable checklists, process flows, scorecards, pricing, asset
valuation, document automation and business rule definition all add
to the bank’s ability to turn around loan applications faster, with a
higher degree of accuracy, better risk assessment, improved
compliance and greater control over pricing.
Delivering
Benefit
Credit Product
Definition
Parameters for the definition of new
credit products and associated loan
origination processes.
New products can be rolled out more
quickly, with the flexibility required to
offer the range of products desired for
the target market, enabling the bank to
offer competitive products.
Workflow
Configuration
The ability to design dynamic loan
origination workflows which support
the entire origination lifecycle.
Facilitates seamless routing and
automated task allocation between
bank staff leading to timely credit
decisions and greater STP within the
loan booking process.
Support for business rule definition and
rule-based routing within the workflow
process.
Pricing
Information,
Definition &
Adjustment
Loan Application
Capture
Credit Scoring
& Rating
Loan
Approval
Document
Generation &
Attachment
Loan
Booking
Pricing engine to facilitate and
automate the application of pricing
strategies, interest rates, fees and
commissions.
Enables banks to tailor pricing against
customer categories, ratings and other
classifications.
Management of integration with other
applications involved in the application
process (e.g. valuations and credit
checks).
Pre-population of existing customer and
account information appropriate to the
loan application minimizes data capture
and costly manual duplications for staff
and customers. This maximizes
processing capacity without increasing
human resources.
Automated scorecard included, with
flexibility to adjust weightings of the
various elements (e.g. salary, investment
income, etc.)
Increased efficiency and greater
business agility as scorings can be
adjusted in response to changes in
market conditions and scorecard
performance.
The ability to automatically approve or
decline loan applications automatically,
based on pre-defined conditions.
Manual decision-making effort is
reduced and customers receive the loan
outcome earlier. Automated decisions
improve compliance, enforce bank
credit policy and reduce manual
intervention required.
Powerful tools allow banks to define
templates for document generation.
Banks may define the required incoming
and outgoing documents for each loan
product and soft copies of documents
can be attached.
The approved loan can be automatically
created and disbursed in the back office
system.
Helps banks to maintain consistency
and ensure completeness of critical loan
documentation.
Improves efficiency in the production of
loan documentation.
Ensures that loan accounts are created
as approved, reducing the opportunity
for fraud.
The automated loan booking improves
efficiency and alleviates the requirement
for manual re-keying of information.
WHAT MAKES AMBIT LOAN ORIGINATION DIFFERENT?
Delivering increased business agility
When business demands or regulatory
requirements force change, banks may be
obliged to allocate budget and resources to
develop enhancements and customizations to
their systems, or even to source new solutions.
Ambit LO, however, provides reusable
applications and highly configurable workflow
capabilities which allow the bank to easily modify
products and processes to meet changing
business requirements, with minimum
interruption to ongoing operations.
Designed with constant change in mind, Ambit
LO incorporates a central repository of customer,
product and pricing details and is provided with
a library of standard activities that can be
deployed to configure product processes. These
include:
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Applicant and co-applicant(s) details
Loan requirements
Financial details
Employment information
Collateral management
Collateral valuation
Checklist
Scorecard
Pricing & adjustment
Document attachment and generation
Credit decision
Loan booking
Reducing time-to-market for new products
The high degree of user configurability within
Ambit LO means that new products can be rolled
out faster, with the flexibility to adjust supporting
processes to maintain compliance with regulatory
and management demands.
A highly parameterized product definition
capability enables bank staff to target new
products at different market segments, using
different pricing strategies and customer
categories, and can thus provide support for
specific campaigns.
Providing end-to-end oversight of the loan
origination process
Traditionally, the loan application is passed from
department to department with different
members of staff having responsibility for each
part of the process. As each participant has sight
of their own part of the processing only, it is difficult
to respond to customer queries about the progress
of the application and this can lead to delays and
frustration for both customers and staff.
Such a fragmented approach is also inadequate
from a control or audit perspective. The sale of
financial products is often strictly regulated and
banks must be able to demonstrate to the
authorities that certain procedures have been
followed, in a specific order.
Ambit LO, provides reusable applications and highly configurable
workflow capabilities which allow the bank to easily modify
products and processes to meet changing business requirements,
with minimum interruption to ongoing operations.
Ambit LO delivers control and audit capabilities to
the bank. The system provides an effective audit
trail by keeping an accurate account of ‘who did
what and when’:
• Each process is defined, followed and its
outcome is registered
• A checklist feature is provided to define
policies, questionnaires, policy deviations,
task completion checks and to prompt any
other required activity within the loan
processing cycle
Oversight of the entire process empowers
the bank staff:
• Loan application status reports are
readily accessible
• Staff can respond to customer queries
in a much more timely fashion, since they
know exactly where each application is in
the cycle
Facilitating improved customer service
Time-consuming and error-prone, the loan
application process has in the past tended to result
in an unsatisfactory experience for bank staff and
customers alike. This situation can be costly in
today’s environment where savvy customers are no
longer driven by loyalty, but rather by a “what’s in
it for me?” mentality.
Ambit LO helps the bank to remedy this situation
through the transformation of the origination
process, to make it more efficient and rewarding
for staff, who in turn are able to provide improved
service to their customers. Benefits delivered
include:
• Streamlining and speeding up the loan
origination process to deliver faster credit
decisions
• Removing the requirement for the customer
to have to populate the same details
repeatedly through the application process
• Providing more efficient processing through
the automation of labor-intensive aspects
within the loan origination process
• The use of a rules engine to allow for
intervention by the bank’s users at the
different stages of the loan origination
cycle; to enable them to offer an alternative
product, if, for example, the original
request is denied
• Improved oversight of the end-to-end
process and more timely resolution of
queries
By enabling banks to target consumer credit
offerings more appropriately in the first instance,
customers are much less likely to be repeatedly
offered unsuitable lending products, which will
further improve their disposition towards their
bank.
Ambit LO delivers control and audit capabilities to the bank. The system
provides an effective audit trail by keeping an accurate account of ‘who
did what and when’.
THE AMBIT LOAN ORIGINATION BALANCE SHEET
Banking Challenges
Ambit LO Deliverables
Higher service expectations
of retail customers:
Differentiation through a superior customer banking
experience:
• Fewer irrelevant loan offers
• Targeted campaign management, facilitated by a 360°
customer view means that customers are much less
likely to be offered unsuitable loans
• Lending illustration
• The Loan calculator enables the illustration of proposed
repayment schedules
• Rapid lending decisions
• Dynamic loan origination workflows support the entire
cycle and reduce the errors and manual intervention
which can delay loan application decisions
• Competitive credit offer
• Dynamic pricing engine enables the bank to
appropriately segment product offerings to match
customer requirements
• Timely resolution of
queries
• A process-driven system gives bank staff end-to-end
oversight of the process and allows them to easily track
progress
• Minimal data capture
requirements
• Pre-population of existing customer and account data
and electronic processing of the application enables the
information to be accessible throughout the
application
Rapid deployment of new
credit products and agility to
adapt business processes
• Parameterized product definition capability enables
bank staff to target new products at different market
segments, using different pricing strategies and
customer categories
• Parameter-driven design of new products and
associated processes speeds up time to market and
reduces IT costs
• Less manual processing frees up staff to concentrate on
product innovation and other revenue-generating
activities
Agility to react quickly to
business changes
• Business rules can be quickly adapted to meet new
requirements with minimum IT costs
Increase operational
efficiency and reduce costs
• Fragmented, manual tasks within the loan origination
cycle are replaced by the integration of people,
processes and systems across the operation,
improving efficiency, responsiveness and reliability
Banking Challenges
Ambit LO Deliverables
Increase operational
efficiency and reduce costs
• Facilitates integration with other applications, such as
those providing valuations, credit checks and insurance
quotes to reduce the need for manual intervention with
third parties
• The ability to dynamically create loan documents based on
pre-defined templates reduces manual intervention
typically required in document processing
• Ambit LOS’ scorecard facility contributes to the
automation of the lending decision process
• A pricing engine is incorporated to automate the
application of pricing strategies, including interest rates,
fees and commissions
• Integrated collateral management features allow for
automated tasks such as verification and valuation to be
efficiently processed
• Automation of loan origination workflows and decisionmaking enables the bank to drive down processing costs
while moving towards a straight-through process model
Ability to meet compliance
requirements
• Control and ‘auditability’ over the sales process is ensured
by Ambit LO’s process management capability: each
process is defined, followed and its outcome is
registered
• Provides an accurate account of ‘who did what and when’
to reduce operational risk
• Process-driven, automated originations ensure compliance
against all credit policies and procedures to reduce credit
risk
• Reusable applications and highly configurable workflow
capabilities make it easier and less costly to change the
system to respond to regulatory changes
• Accessibility of collateral data facilitates enforcement of
secured lending policy
Reduced cost and risk of
implementing retail lending
solutions
• Reduced payback period and early business ‘wins’ through
the possibility of implementing Ambit LO as part of a
wider componentized deployment strategy
• Ability to leverage full customer servicing capabilities
through the implementation of other fully-integrated
Ambit EBS components
www.sungard.com/ambit
For more information, contact us at [email protected]
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Asia
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Shenzhen, China
Singapore
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Australia/New Zealand
Melbourne, Australia
Perth, Australia
Sydney, Australia
Christchurch, New Zealand
SunGard’s solutions for banking are used by more than 800 banks in 70 countries including 41 of the
world’s top 50 banks. SunGard provides a comprehensive core banking solution and best-of-breed point
solutions for retail, commercial and private banking, straight through enterprise processing, treasury
management, finance, risk and compliance, including Apsys, BancWare, STeP and System Access.
©2009 SunGard.
Trademark Information: SunGard, the SunGard logo and Ambit, Apsys, BancWare, STeP and System Access are trademarks or
registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are
trademarks or registered trademarks of their respective holders.
www.sungard.com/ambit
For more information, contact us at [email protected]
Americas
Boston, MA
Calabasas, CA
Parsippany, NJ
New York, NY
Sao Paolo, Brazil
Stamford, CT
Western Europe
Antwerp, Belgium
Frankfurt, Germany
Geneva, Switzerland
London, UK
Luxembourg
Mechelen, Belgium
Milan, Italy
Paris, France
Surrey, UK
Winterthur, Switzerland
Zurich, Switzerland
Eastern Europe
Bratislava, Slovakia
Middle East
Dubai, United Arab Emirates
Asia
Bangkok, Thailand
Beijing, China
Hanoi, Vietnam
Hong Kong, China
Kuala Lumpur, Malaysia
Manila, Philippines
Seoul, South Korea
Shanghai, China
Shenzhen, China
Singapore
Taipei, Taiwan
Tokyo, Japan
Karachi, Pakistan
Australia/New Zealand
Melbourne, Australia
Perth, Australia
Sydney, Australia
Christchurch, New Zealand
SunGard’s solutions for banking are used by more than 800 banks in 70 countries including 41 of the
world’s top 50 banks. SunGard provides a comprehensive core banking solution and best-of-breed point
solutions for retail, commercial and private banking, straight through enterprise processing, treasury
management, finance, risk and compliance, including Apsys, BancWare, STeP and System Access.
©2009 SunGard.
Trademark Information: SunGard, the SunGard logo and Ambit, Apsys, BancWare, STeP and System Access are trademarks or
registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are
trademarks or registered trademarks of their respective holders.