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Loan disbursement automation

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Newgen Software Technologies Limited
Newgen Software Technologies Limited

The document describes a case study of a microfinance company that automated its loan disbursement process with Newgen's solutions. The company was processing a high volume of loan applications across multiple locations but faced challenges in scaling manually. Newgen redesigned the application form for optical scanning, automated document workflows, and integrated with the company's core system. This improved efficiency, visibility, and control over the loan disbursement process.

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Case Study SOLUTIONS FOR BUSINESS PROCESS & DOCUMENT MANAGEMENT Loan Disbursement Automation For a leading MicroFinance company Overview The client is a microfinance company and based out of Chennai, India. It was started in December 2007 with the core focus on micro credit extended through the grameen model with suitable adaptation. The client started its operations in Chennai initially, but later extended to most of the down-south districts in Tamilnadu. The sales process includes sales process of forming groups, training, application formalities, credit screening and collection process. The client has three major products for its credit operations viz. Silver, Gold and Platinum – each having its own features. It uses BankersRealm (BR.Net), a microfinance product from CraftSilicon, as the core application. Micro credit is extended to expansion in the areas of ! Business (either new or expansion) ! Education ! Loan consolidation/ repay high interest borrowing The main objective is to develop institutional financial self-sufficiency and to penetrate breadth and depth wise across the low-income groups/individuals, profitably. The client’s mission has been to improve quality of life by increasing total household asset value of those who are not effectively serviced by the formal financial sector by providing transparent and trustworthy access to financial and other relevant products and services by deploying cutting edge technology and forming partnerships and alliances. Their vision is to be the leader in MicroFinance in the country. The client has been a pioneer in its class by crossing various milestones right from the date of inception. The Challenge The client generates around 50-70 centres a day across its operational locations. A centre is termed as the group formed for loan disbursement. The current mode of operation has been highly successful in its present form. However, with the inclination of growing in volumes both at established centres and at new locations, the client feels that the www.newgensoft.com
Case Study SOLUTIONSN FOR R B U S I N E S SPROCESS S && DOCUMENT MANAGEMENT C ONTENT M ANAGEMENT processing commitment may get hampered. This is because of the fact that more resources would be required for processing the abnormal additional volume in the months to come. As a pioneer, the client wants to automate majority of the document movement and data-capture activities in order to get the maximum benefit of automation with a marginal increase in man-power. The client also wants to leverage on the multi-locational and distributed operational environments. This is to ensure the optimal cost of processing. With the aim of business process automation – which includes eliminating document movement, anywhere access, distributed capture and automatic data extraction – had requested Newgen to come out with a solution that will be beneficial, cost effective and that provides more control over the processes. The Newgen Solution Newgen, with its vast experience on business process automation, undertook the challenge of the business requirement of the client considering the value proposition of MicroFinance operations. Newgen, as advised by the client, took a three step approach. Step 1: Re-designing the membership application (MA) form to automate data extraction S O L U T I O S F O BUSINESS P R O C E S Step 2: Process automation for eliminating document movement. Step 3: Seamless integration with core application for effective data- interchange Newgen, on its part, was definitive on ensuring that ! ‘BankersRealm’ – the core application – is the system of record for all purposes ! Process automation will compliment all non-core functionalities of the core application – basically human-system and human-human interfaces with inclusion of system-system interface STEP 1: RE-DESIGN OF MEMBERSHIP APPLICATION FORM The existing membership application form (MA) had many fields to be filled that was more of yes/no or radio & check -boxes with defined values. As a first step, Newgen, with its experience on extraction methodologies, redesigned the membership application form as an Optical Mark Recognition (OMR) friendly form. Majority of the fields (close to 85- 90%) of the information captured by the field sales executives with very less fields for manual entry. OMR have very good accuracy rates and hence this model was adopted for tick and check-box fields. This ensured that majority of the data-entry operations are automated ensuring mere verification and data-entry of only few fields. The per person productivity of data-entry operators improved significantly. STEP 2: PROCESS AUTOMATION The manual document flow within the organization for processing it end- www.newgensoft.com
Case Study SOLUTIONSN FOR R B U S I N E S SPROCESS S && DOCUMENT MANAGEMENT C ONTENT M ANAGEMENT to-end was the next to work on. Newgen automated the process right from membership application scanning to loan approval. As is with majority of the core applications, Newgen provided support to the existing BankersRealm application by reaching out on data-capture in an efficient way from the scanned forms. STEP 3: SEAMLESS INTERFACE WITH CORE APPLICATION Newgen also ensured that the core application, BankersRealm, holds the right data – as if the processing of membership applications were done in that application. Master data is being exchanged on a periodic basis while the core form TM data captured in the OmniFlow process is being exchanged through intermediate repository. Once the core application processes the data TM from the intermediate repository and confirms, OmniFlow takes the next steps towards successful completion of the loan processing. The advantage of the intermediate repository removed the dependency on either of the application for processing thus ensuring high-availability for operational needs. S O L U T I O S F O BUSINESS P R O C E S The Benefits Some of the benefits gained from the solution are and not limited to: ! Increased efficiency in data-entry and verification = data-capture cum verification form and the scanned image The were displayed together in one screen side-by-side. This eliminated completely the physical document movement. = other advantage was ensuring that all the member The information was entered in total leaving out speculations while using physical documents. ! Better coordination with field sales officers for any discrepancy in the MA forms like missing information or insufficient documentation. ! Seamless validated business data exchange with the core application ‘BankersRealm’ on to be processed data and confirmation (customer id). ! Efficient and easy replacement of members within the group (both documents and data) ! Complete audit trail of any centre – including members replaced, original member history, data and documents associated among other aspects ! Visibility of processing and management of process from anywhere – as the whole application is web based. Since the client has corporate office and operations centre at different places. ! Easy porting of application servers to data-centre and remote management of application (OmniFlowTM). ! Optimal usage of bandwidth between data-centre and location of operation through implementation of remote image server (caching server) which ensures local retrieval of images while reflecting the current state of processes. www.newgensoft.com
Case Study SOLUTIONSN FOR R B U S I N E S SPROCESS S && DOCUMENT MANAGEMENT C ONTENT M ANAGEMENT ! Faster rollout across different locations of operation (enabling centralized and decentralized scanning and usage on the web interface) ! Easy extension of the process to various intended users across various locations without extending the core application enabling higher data- security (of past records) Newgen Product Suite for Process Automation TM OmniFlow – Enterprise Business Process Automation Suite OmniDocsTM – Enterprise Document Management Suite OmniExtractTM – Production Grade Form Extraction Suite TM OmniScan – Production Grade Scanning Application About Newgen Newgen Software Technologies Limited is a market leader in Business Process Management (BPM) and Document Management System (DMS), with a global footprint of about 700 installations in over 30 countries. More than 100 of these implementations are large, mission- critical solutions deployed at world's leading BFSI, BPO and Fortune Global 500 companies. Newgen is recognized by distinguished analyst firms like IDC in its exclusive report “Newgen Software: Global Leader in Business Process S O L U T I O S F O BUSINESS P R O C E S Management and Document Management Solutions.” With investments from HSBC Private Equity Asia and SAP Ventures, Newgen is one of the rare product companies to have backing of world’s leading financial and technology companies. Winner of prestigious awards, such as CNBC-TV18 “Emerging India Award 2008”, Frost and Sullivan's “Market Leadership Award for Document Management System and Workflow Software & Services” and “Distinguished Application Product Company” by NASSCOM, Newgen Software is an ISO 9001:2000, ISO 27001 certified and CMM Level 4 company. Newgen prestigious clients include HSBC Bank, Deutsche Bank, Hua Nan Bank, ABN Amro Bank, ICICI Bank, IDBI Bank, State Bank Of India, ING Vysya Bank, CitiFinancial, RAK Bank, Bank of Tanzania, Max New York Life, Bajaj Allianz., Unilever, Philips, GE Countrywide, EXL, Satyam Nipuna, iGATE, Core 3, Ranbaxy, GSL, Kenyan Airways and SEC Phillipines. Newgen Software Technologies Ltd. A-6, Satsang Vihar Marg, Qutab Institutional Area, www.newgensoft.com New Delhi 110 067 Tel: +91-11-26964733, 26963571, 26856871 Email: newgen@newgen.co.in Newgen Software Inc. CS-Eqts-1 1364 Beverly Road, Suite 300 McLean, VA 22101 Tel: +1 (703) 749-2855 Email: info@newgen.net

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Loan disbursement automation

  • 1. Case Study SOLUTIONS FOR BUSINESS PROCESS & DOCUMENT MANAGEMENT Loan Disbursement Automation For a leading MicroFinance company Overview The client is a microfinance company and based out of Chennai, India. It was started in December 2007 with the core focus on micro credit extended through the grameen model with suitable adaptation. The client started its operations in Chennai initially, but later extended to most of the down-south districts in Tamilnadu. The sales process includes sales process of forming groups, training, application formalities, credit screening and collection process. The client has three major products for its credit operations viz. Silver, Gold and Platinum – each having its own features. It uses BankersRealm (BR.Net), a microfinance product from CraftSilicon, as the core application. Micro credit is extended to expansion in the areas of ! Business (either new or expansion) ! Education ! Loan consolidation/ repay high interest borrowing The main objective is to develop institutional financial self-sufficiency and to penetrate breadth and depth wise across the low-income groups/individuals, profitably. The client’s mission has been to improve quality of life by increasing total household asset value of those who are not effectively serviced by the formal financial sector by providing transparent and trustworthy access to financial and other relevant products and services by deploying cutting edge technology and forming partnerships and alliances. Their vision is to be the leader in MicroFinance in the country. The client has been a pioneer in its class by crossing various milestones right from the date of inception. The Challenge The client generates around 50-70 centres a day across its operational locations. A centre is termed as the group formed for loan disbursement. The current mode of operation has been highly successful in its present form. However, with the inclination of growing in volumes both at established centres and at new locations, the client feels that the www.newgensoft.com
  • 2. Case Study SOLUTIONSN FOR R B U S I N E S SPROCESS S && DOCUMENT MANAGEMENT C ONTENT M ANAGEMENT processing commitment may get hampered. This is because of the fact that more resources would be required for processing the abnormal additional volume in the months to come. As a pioneer, the client wants to automate majority of the document movement and data-capture activities in order to get the maximum benefit of automation with a marginal increase in man-power. The client also wants to leverage on the multi-locational and distributed operational environments. This is to ensure the optimal cost of processing. With the aim of business process automation – which includes eliminating document movement, anywhere access, distributed capture and automatic data extraction – had requested Newgen to come out with a solution that will be beneficial, cost effective and that provides more control over the processes. The Newgen Solution Newgen, with its vast experience on business process automation, undertook the challenge of the business requirement of the client considering the value proposition of MicroFinance operations. Newgen, as advised by the client, took a three step approach. Step 1: Re-designing the membership application (MA) form to automate data extraction S O L U T I O S F O BUSINESS P R O C E S Step 2: Process automation for eliminating document movement. Step 3: Seamless integration with core application for effective data- interchange Newgen, on its part, was definitive on ensuring that ! ‘BankersRealm’ – the core application – is the system of record for all purposes ! Process automation will compliment all non-core functionalities of the core application – basically human-system and human-human interfaces with inclusion of system-system interface STEP 1: RE-DESIGN OF MEMBERSHIP APPLICATION FORM The existing membership application form (MA) had many fields to be filled that was more of yes/no or radio & check -boxes with defined values. As a first step, Newgen, with its experience on extraction methodologies, redesigned the membership application form as an Optical Mark Recognition (OMR) friendly form. Majority of the fields (close to 85- 90%) of the information captured by the field sales executives with very less fields for manual entry. OMR have very good accuracy rates and hence this model was adopted for tick and check-box fields. This ensured that majority of the data-entry operations are automated ensuring mere verification and data-entry of only few fields. The per person productivity of data-entry operators improved significantly. STEP 2: PROCESS AUTOMATION The manual document flow within the organization for processing it end- www.newgensoft.com
  • 3. Case Study SOLUTIONSN FOR R B U S I N E S SPROCESS S && DOCUMENT MANAGEMENT C ONTENT M ANAGEMENT to-end was the next to work on. Newgen automated the process right from membership application scanning to loan approval. As is with majority of the core applications, Newgen provided support to the existing BankersRealm application by reaching out on data-capture in an efficient way from the scanned forms. STEP 3: SEAMLESS INTERFACE WITH CORE APPLICATION Newgen also ensured that the core application, BankersRealm, holds the right data – as if the processing of membership applications were done in that application. Master data is being exchanged on a periodic basis while the core form TM data captured in the OmniFlow process is being exchanged through intermediate repository. Once the core application processes the data TM from the intermediate repository and confirms, OmniFlow takes the next steps towards successful completion of the loan processing. The advantage of the intermediate repository removed the dependency on either of the application for processing thus ensuring high-availability for operational needs. S O L U T I O S F O BUSINESS P R O C E S The Benefits Some of the benefits gained from the solution are and not limited to: ! Increased efficiency in data-entry and verification = data-capture cum verification form and the scanned image The were displayed together in one screen side-by-side. This eliminated completely the physical document movement. = other advantage was ensuring that all the member The information was entered in total leaving out speculations while using physical documents. ! Better coordination with field sales officers for any discrepancy in the MA forms like missing information or insufficient documentation. ! Seamless validated business data exchange with the core application ‘BankersRealm’ on to be processed data and confirmation (customer id). ! Efficient and easy replacement of members within the group (both documents and data) ! Complete audit trail of any centre – including members replaced, original member history, data and documents associated among other aspects ! Visibility of processing and management of process from anywhere – as the whole application is web based. Since the client has corporate office and operations centre at different places. ! Easy porting of application servers to data-centre and remote management of application (OmniFlowTM). ! Optimal usage of bandwidth between data-centre and location of operation through implementation of remote image server (caching server) which ensures local retrieval of images while reflecting the current state of processes. www.newgensoft.com
  • 4. Case Study SOLUTIONSN FOR R B U S I N E S SPROCESS S && DOCUMENT MANAGEMENT C ONTENT M ANAGEMENT ! Faster rollout across different locations of operation (enabling centralized and decentralized scanning and usage on the web interface) ! Easy extension of the process to various intended users across various locations without extending the core application enabling higher data- security (of past records) Newgen Product Suite for Process Automation TM OmniFlow – Enterprise Business Process Automation Suite OmniDocsTM – Enterprise Document Management Suite OmniExtractTM – Production Grade Form Extraction Suite TM OmniScan – Production Grade Scanning Application About Newgen Newgen Software Technologies Limited is a market leader in Business Process Management (BPM) and Document Management System (DMS), with a global footprint of about 700 installations in over 30 countries. More than 100 of these implementations are large, mission- critical solutions deployed at world's leading BFSI, BPO and Fortune Global 500 companies. Newgen is recognized by distinguished analyst firms like IDC in its exclusive report “Newgen Software: Global Leader in Business Process S O L U T I O S F O BUSINESS P R O C E S Management and Document Management Solutions.” With investments from HSBC Private Equity Asia and SAP Ventures, Newgen is one of the rare product companies to have backing of world’s leading financial and technology companies. Winner of prestigious awards, such as CNBC-TV18 “Emerging India Award 2008”, Frost and Sullivan's “Market Leadership Award for Document Management System and Workflow Software & Services” and “Distinguished Application Product Company” by NASSCOM, Newgen Software is an ISO 9001:2000, ISO 27001 certified and CMM Level 4 company. Newgen prestigious clients include HSBC Bank, Deutsche Bank, Hua Nan Bank, ABN Amro Bank, ICICI Bank, IDBI Bank, State Bank Of India, ING Vysya Bank, CitiFinancial, RAK Bank, Bank of Tanzania, Max New York Life, Bajaj Allianz., Unilever, Philips, GE Countrywide, EXL, Satyam Nipuna, iGATE, Core 3, Ranbaxy, GSL, Kenyan Airways and SEC Phillipines. Newgen Software Technologies Ltd. A-6, Satsang Vihar Marg, Qutab Institutional Area, www.newgensoft.com New Delhi 110 067 Tel: +91-11-26964733, 26963571, 26856871 Email: newgen@newgen.co.in Newgen Software Inc. CS-Eqts-1 1364 Beverly Road, Suite 300 McLean, VA 22101 Tel: +1 (703) 749-2855 Email: info@newgen.net