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ARCIS eServices

Solus

Residential Mortgage Case Study

This top 10 global financial services giant has been ARCIS’s client for two decades. With over 200 million customer accounts, business in more than 100 countries, it provides customers in India with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management.

Processes ARCIS runs

  • Sales
    • Inbound toll-free channel for mortgages
    • Outbound Tele-marketing to existing customers
    • Mortgage sourcing Desks – Bank branches
    • Field Sales Team – Customer meetings, Product fitment, Information supplement to credit team
    • Fulfillment services – Documentation and closing
  • Processing
    • Initiation of de-dupe against defaulter list
    • Coordination of valuation and legal opinion
    • Document verification
    • Financial analysis for product program fitment & credit decision
    • Completion of reports required for credit decision and preparation of Bankers Credit Committee report
    • Despatch of pre-sanction letter
    • Coordination of execution of loan documents
    • Coordination of loan disbursal
  • Review
    • Review of loan to examine fitment/compliance to product program
    • Review of de-dupe reports and reports received from valuation expert, lawyer, CPA, contact point verification team and telephonic verification team
    • Review of compliance to documentation norms
    • Review of “deviation approvals” and “credit sanctioning” as per approval matrix of bank
    • Final review of loan documentation as per norms
    • Completion of review checklists and necessary product / personnel codes
  • Credit Appraisal / Sanction
    • Personal discussion and meeting with customer at business / office premises
    • Appraisal of customer vis-à-vis background, net worth, income level and sustainability,
    • professional stability / consistency, assessment of end-use of loan, final assessment on
    • repayment ability, scrutiny of original tax documents
  • Underwriting decision
    • Participating in the final credit discussion/decision with the bankers (part of Bankers Credit Committee)
    • Sign-off on review checklists and BCC report
  • Evolution of the Processes
    • Residential mortgage process was started with the launch of the bank’s first home loan in India in 1990
    • ARCIS designed the product program from scratch and tailored it to perform credit assessment for applicants in the absence of credit bureaus
    • ARCIS established credit underwriting team at the back-end to allow the bank to ramp-up sourcing    operations
    • Bank launched multiple products under the home loan program to make it a true retail financial    product
    • Other banks followed suit and customer service became the focus of lending
    • ARCIS established teams at multiple sites to ease customer interface and to speed up due-diligence and documentation
    • With multiple product programs in operation, adherence to product norms became the single biggest challenge on quality
    • ARCIS established central review unit for entire Delhi, NCR and cities in north India to ensure    compliance to product program
    • Pre-screening norms/operations were tightened to reduce un-tenable cases thereby reducing credit workload and costs
    • Bank moved mortgage process on-line to allow “enter once – view everywhere” ability and to control activities/sign-off through rights granted in the system
    • ARCIS trained personnel on on-line system and is now establishing leased line access to bank’s systems to become part of a country-wide intranet for mortgages
  • Benefits Achieved
    • Process exceeds all customer expectations with accuracy levels consistently exceeding the SLA requirement of 98%
    • Substantial cost savings
    • Turn-around-time brought down by 50%
    • Customer achieved flexibility in its back-room operations to cater to changing product norms
    • Back-end process in complete compliance with information security norms put in force by the client across the region