Accelerating SME lending through a scalable digital offering | HCLTech

Accelerating SME lending through a scalable digital offering

HCLTech builds a scalable and efficient solution for a European banking major
5 min read
5 min read

Our client is one of the largest banks in Europe. The growth strategy the bank pursued was to grow its small and medium enterprises lending business by building differentiated customer experience models. They had the vision to provide customers with solutions that would prove most effective in managing their financial prosperity and growth.

The Challenge

Inefficiencies in business processes

Our client faced peculiar challenges in their loan application process. The end-to-end SME loan origination process of the bank was fragmented between multiple business divisions. One of the critical aspects of the loan origination process was loan processing and approval. The procedure for loan applications were manual and the use of technology was limited. This inevitably led to excessive paperwork. Additionally, due to the process being fragmented between multiple business divisions, there were multiple handoffs that led to delays in acquiring loan approval. There was also a lack of automation in the credit decision-making stage.


The Objective

Moving away from legacy processes toward digitalization

Transforming the traditional loan procedure to tackle challenges from the competition was needed to succeed in the digitalization race. The objective was to increase the use of technology to streamline the loan application process, leading to an enhanced customer experience. It facilitated the rise in automation opportunities and standardized existing customer data to reduce the processing period.

An efficient digitally driven application process was needed to reduce operational risk. This would go on to provide strong workflow management and improve STP, transparency and accountability. The bank relied on HCLTech to bring in their expertise in the end-to-end execution of the program, keeping the needs of our client in mind.

Accelerating SME lending through a scalable digital offering

The Solution

Empowering business with efficiency and speed

Our solution comprised enhancing the Business Process Mapping (BPM) tool leveraging the . Pega BPM integration helped design and build a customer lending platform with strong business process management with the help of Pega services.

  • We built and exposed Pega-driven BPM modules to integrate with the credit bureau, helping retrieve instant credit assessments for new customers/leads and top-up loan eligibility for existing customers.
  • To mitigate the problems of excessive paperwork, smart contracts were introduced to move away from paper-based contracts using the out-of-the-box Pega digital and smart contracts.
  • We included all SME banking support functions in the solution, such as product changes, loan repricing and portfolio servicing. The collections modules were handled by Pega problem loan management.

The end-to-end implementation of an instant lending platform for SME customers integrated into Pega workflow via ESB layers helped in loan origination development and integration.


The Impact

Smart personalization to enhance customer satisfaction

Our solutions for the client helped improve customer satisfaction by making business processes easy, smart and personalized.

  • The loan origination processing decisions were made based on external commercial borrowings (ECB)
  • With the help of 80% automation introduced by our solutions in the loan origination process, operational risk was significantly reduced, along with optimizing the cost of procedures
  • Loan processing is now done in real-time through the instant lending feature implemented

HCLTech contributed to driving the efficiency of the business process by lending our expertise in several areas, including automation and API-led architecture and satisfying the needs and objectives of our client.