Major US Bank Slashes Costs by 20% with Same-Day Loan Servicing Transformation
Overview.
This case study explores how Coforge partnered with a leading US bank with 1100 branches to optimize their loan servicing processes. The bank faced challenges managing a high volume of diverse requests while maintaining efficiency and cost-effectiveness. Coforge's solution streamlined workflows and reduced turnaround times significantly.
High Volume and Variety: The bank processed a large number of loan servicing requests monthly (27,000 for mortgages, 19,000 for consumer loans), requiring efficient handling.
Slow Turnaround Times: Delays in processing requests (5 days for settlement) hindered customer service.
Cost Pressures: Managing a large staff for loan servicing created significant cost burdens.
Solution.
Coforge implemented a comprehensive reengineering of the request fulfillment process, focusing on three key stages:
Processing Administrative Support:
Boarding and indexing
Loan registration data keying (correspondent)
Review & quality check of initial disclosure and documents
Administrative & verification support
Third-party document requirement review
Pre-Underwriting Support:
Data Validation and Review
Third Party Ordering
Income Analysis
Assets, Collateral, Credit and Disclosure Review
Ratio calculation and AUS
Risk Mitigation Report Analysis
Data & Analytics
Closing & Funding:
Pre-closing and pre-funding quality checks
Closing worksheet preparation
Closing disclosure review
The Impact.
This resulted in :
80% Same-day Turnaround for loan servicing requests
2 Days Reduction in transaction settlement time (from 5 to 3 days)
20%+ Consistent cost savings since process inception
Improved Overall customer service and satisfaction
Ready to revolutionize your loan servicing? Contact Coforge BPS for tailored solutions that deliver results.
