AMBIT LOAN ORIGINATION A New Approach

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1 AMBIT LOAN ORIGINATION A New Approach Overview A key 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. SunGard s Ambit Loan Origination enables banks to address this outdated situation. It is a process driven 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 Loan Origination is integrated with Ambit CustomerConnect. Ambit CustomerConnect 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 CustomerConnect 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. Ambit CustomerConnect components which can be deployed to complement Ambit Loan Origination include: Ambit Customer Service Platform (CSP) Ambit Branch Teller Platform (BTP) Ambit Branch Teller Platform Ambit Customer Service Platform Ambit CustomerConnect Ambit Loan Origination Integration & Business Process Management Layer

2 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 not only slow down the loan outcome for customers, they also 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. Ambit Loan Origination 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 Loan Origination 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. Delivering Benefit 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. 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. Support for business rule definition and rule-based routing within the workflow process. Facilitates seamless routing and automated task allocation between bank staff leading to timely credit decisions and greater STP within the loan booking process. Pricing Information, Definition & Adjustment 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. Loan Application Capture 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. Credit Scoring & Rating Loan Approval Document Generation & Attachment Loan Booking Automated scorecard included, with flexibility to adjust weightings of the various elements (e.g. salary, investment income, etc.) The ability to automatically approve or decline loan applications automatically, based on pre-defined conditions. 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. Increased efficiency and greater business agility as scorings can be adjusted in response to changes in market conditions and scorecard performance. 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. 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. Ambit Loan Origination, 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. The diagram illustrates the specific benefits delivered by Ambit Loan Origination at each stage of the loan origination process.

3 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 Loan Origination, 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 Loan Origination 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: 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 Loan Origination 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 Loan Origination 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 s 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 The loan application process can often 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 convenience and a what s in it for me? mentality. Ambit Loan Origination 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 Loan Origination 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.

4 The Ambit Loan Origination balance sheet BANKING CHALLENGES AMBIT LOAN ORIGINATION DELIVERABLES Higher service expectations of retail customers: Fewer irrelevant loan offers Lending illustration Rapid lending decisions Competitive credit offer Timely resolution of queries Minimal data capture requirements Differentiation through a superior customer banking experience: Targeted campaign management, facilitated by a 360 customer view means that customers are much less likely to be offered unsuitable loans The loan calculator enables the illustration of proposed repayment schedules Dynamic loan origination workflows support the entire cycle and reduce the errors and manual intervention which can delay loan application decisions Dynamic pricing engine enables the bank to appropriately segment product offerings to match customer requirements A process-driven system gives bank staff end-to-end oversight of the process and allows them to easily track progress 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

5 BANKING CHALLENGES AMBIT LOAN ORIGINATION DELIVERABLES 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 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 Loan Origination s 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 decision making 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 Loan Origination 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 Loan Origination as part of a wider componentized deployment strategy Ability to leverage full customer servicing capabilities through the implementation of other fully-integrated Ambit CustomerConnect components

6 Ambit Ambit Loan Origination SunGard s Ambit Loan Origination solution provides high levels of automation throughout the loan origination cycle to improve efficiency, productivity and reduce costs. It provides a high level of accountability with an accurate audit trail. Dynamic loan origination workflows help automatically distribute work across the enterprise and reduce errors and manual intervention, which can delay the processing of loan applications. Business rules can be quickly adapted to meet new requirements and bring new products to market with minimized IT costs. About SunGard Retail Banking SunGard s solutions for retail banking cover core banking, multi-channel customer management, including tablet, mobile and online banking and card management. Banks around the world use these solutions to help drive their customer service, retention and core operational strategies through improved visibility of customer relationships and increased front to back office efficiencies. The flexibility, functional breadth and full product support of these solutions are helping banks to enhance customer engagement, improve business efficiency and outperform through innovation to drive profitability, support growth and aid compliance. About SunGard SunGard is one of the world s leading software and technology services companies, with annual revenue of about $2.8 billion. SunGard provides software and processing solutions for financial services, education and the public sector. SunGard serves approximately 16,000 customers in more than 70 countries and has more than 13,000 employees. For more information, please visit For more information, please visit: Follow us on Twitter: Contact us on: ambitinfo@sungard.com To join us on LinkedIn, search for: SunGard Retail Banking Group 2015 SunGard. Trademark Information: SunGard and the SunGard logo 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. RB3188