Accelerating SME finance through same day lending decisions | HCLTech

Accelerating SME finance through same day lending decisions

The Australian Prudential Regulation Authority (APRA) conducted stress testing of all Authorised Deposit-taking Institutions (ADI) in 2017 to test resilience of the Australian banking system.

One of the key action points that emerged from the stress testing exercise was to make the credit appraisal of Corporate, Institutional Banking & Markets unit of various leading banks in Australia foolproof and auditable, considering factors such as Exposure At Default (EAD) and Loss Given Default (LGD). LGD was captured largely off­-system, leading to data quality and process inconsistency. The existing format was user-dependent and posed an operational risk/challenge.

The client, one of the leading banks in APAC, has introduced several initiatives to be “better” for small businesses such as revamping lending systems, enabling instant lending decisions and waiver of business banking fees /charges. Some of the business challenges faced by the client include delay in time to decision, manually intensive loan process, regulatory mandates and limited scope for data driven credit decisions. Key objective of this program was to deliver best in class Business banking origination & maintenance applications to enable accurate determination of the risk involved in lending and provide instantaneous credit decisions.

With more than 30+ years of experience and 80+ implementation in lending space, HCLTech has been the strategic partner for banks and financial institutions in lending transformation programs across multiple geographies. Leveraging strategic partnership with Pega, HCLTech has helped top 20 banks across the globe to accelerate digital adoption and drive business outcome led initiatives.

Download this success story to know more about HCLTech’s SME finance solutions.