Qorus-Infosys Finacle Banking Innovation Awards 2024

Digital sourcing and faster approval for Working Capital Requirement (SME & MSME Segment)

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23/05/2024 Banking Innovation

About

Our advanced tech product reduces loan disbursement TAT from 25 days to 10 days with 1 hour in-principal approval. Built on a cloud native stack, it ensures compliance, enhances productivity and supports scalable growth

Innovation presentation

This is a product offering enabled by advanced technology and requesting few details be provided by the customer.

Benchmarking initiative for reduction in Turn Around Time for the customer from

Existing End to End disbursement TAT of 25 days

Innovation bringing in In-principal Approval TAT of 1 hour and End to End disbursement TAT of 10 days.

Innovative journey for initiating Loan Application requires only the below 3 information any request for a working capital facility.

Mobile No., (2) Permanant Account Number (PAN) No., (3) Pin code

This is built on Future-ready technology stack and will be a perfect remedy for Business growth plans. Some of the salient ones include:

1) Micro-services based fully Cloud-Native application, to power scalable and sustainable business growth.

2) Productivity Enhancement with new functional features, and better application design

3) Modern UI and UX design that enables the Users to complete their work effectively and efficiently.

4) The proposed solution will cover the End-to-End (E-2-E) requirements from all Digital Front-end channel side to the entire Back end and surround systems.

5) Ensuring Compliance to Bank Policy, Credit Processes & Digital Lending Guidelines

Why CLO (Commercial Loan Origination)

HDFC Bank Offers Working Capital facility (with and Without Security / Collateral) – all types of facility (Fund Based, Non-Fund Based). This process is completely manual up to Credit Decision. All documents are collected in physical from the customer and assessment is done by Credit & Risk Team as per defined bank process & policy. End To End TAT for credit decision take average 25 days.

Uniqueness of the project

The solution consolidates the multitude of applications, replacing the existing SME and IFMS applications and incorporating the functionalities of most of the scaffolding / Inhouse applications within CLO. CLO will come with an Omni-potent integration engine, the Olive Fabric that can standardize the way CLO interfaces with all necessary internal and external applications that are currently available are likely to evolve over the next decade.

Business capability:

This is a Paperless Processing with availability across geographies.

Features include: -

i) Customer can be New to Bank (NTB) or Existing to Bank (ETB)

ii) Apply for multiple product / facility in single request.

iii) All products under working capital including Trade Product & Term Loans

This product is one of the key milestones in bank’s digital journey in line with Banks vision for technology enabled business service and high standard customer experience levels.

Success Journey due to the following:

i) Minimum data entry (only 46)

ii) Total 56 different API connected to Fetch details available in public domain – with / without consent.

iii) Digital Analysis of Bank Statement, GST, Financials

iv) API integration with CGTMSE for Guarantee issuance.

v) Current Account Opening with KYC documents and validation.

vi) Customer can seek assistance for RM during the Journey

vii) All facility / products, Collateral etc. are tightly master & rules driven.

Limited journey with RM Assistant call with click of a button.

i) Login with just 3 data for NTB to CRB

ii) Minimum Data Entry (51 fields across Journey as against 650 fields)

iii) 56 API integrated.

iv) Fetch details available in Public Domain (GST, ROC, URC, Banking, Financials, NSDL-PAN, Bureau (Cons. & Comm.), Hunter

v) Enabled for Business Banking, Emerging Enterprise, Small Agri Business, Loan Against Securities, Pledge- Commodity, Health Care Finance, Commercial Transportation business.

Started the journey on Pilot in Feb-2023 and launched officially in May-2023 and seen great success and adoption.

As of 25-April 2024 – volumes as follows.

1) Adoption in this journey has been 90%.

2) Volumes process: 69,761 proposals

3) Credit Decisioned: 44,563 proposals

4) Proposals Approved: 19,414 (Value Rs.26,199 Crores)

5) Proposals Disbursed: 14,803 (Value Rs. 15,092 Crores)

6) Overall End To End TAT: Achieved

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