More efficiently and safer

Spółdzielcza Grupa Bankowa [The Cooperative Banking Group] is incorporates 206 cooperative banks and SGB Bank SA, being the associating bank. This is a strong financial group with a network of over 1,800 branches in Poland, 3,000 commission-free ATMs and electronic contact channels. The developed POS network covers over 55% of the area of Poland.

All this since 2011, when Gospodarczy Bank Wielkopolski associated Mazowiecki Bank Regionalny and changed the name to SGB S.A. At the same time, Spółdzielcza Grupa Bankowa was joined by other cooperative banks operating under the name of MR Bank SA.
SGB Bank SA, as the associating bank, offers support for the entire SGB Group, by cooperating with the associated banks and acting in their interest in the area of universal banking services for individual and legal persons, and financial support of business enterprises, particularly in the area of agriculture and food industry.

Decision made

In 2009, still as Gospodarczy Bank Wielkopolski, SGB Bank decided to implement a system supporting loan granting process. -The direct reason was the growing competition on the banking market, forcing the banks to adopt new solutions to streamline sales processes. Automation of business processes provides for higher efficiency with simultaneous optimisation of the use of resources, while additionally significantly limits operational risk. It must be, however, stated that undoubtedly, the supreme objective of the implementation was meeting the needs of the Associated Cooperative Banks - says Ziemowit Stempin, Director of Relations Department at SGB Bank.

Why CasePro

The choice was Bonair’s proprietary system, CasePro – a platform for business processes management, oriented in particular at support of processes related to automation of data acquisition, verification, processing, storing and reporting. CasePro allows for modelling the processes without the need for using programmers’ assistance. It involves the design layer, namely definition and parameter setting for cases – processes, and the executive layer in the form of support of specific cases.

One of the greatest advantages of CasePro is its flexibility, ensured by abandoning of stiff structures and processing algorithms and turning to definition approach and modelling in the graphic environment. This has proved to be of major importance to SGB Bank when choosing the solution. -The fundamental feature of CasePro platform is its association-oriented nature and tailoring to the specificity of the cooperative sector, which we liked a lot. What also mattered was the long good cooperation with Bonair and an attractive offer presented by the Contractor - says Ziemowit Sempin.

It is worth stressing that granting loans and credit facilities is one of the main processes functioning at SGB Bank, which involves both the headquarters and the branches.

SGB’s expectations and needs

The bank expected a system to support the entire customer service process, starting from recognition of their needs and initiation of the first contact with the customer, through gathering all data from internal and external sources at one place, credit eligibility assessment, up to making the decision regarding the loan and generation of the necessary documents. The system was also to support the credit facility launching system and to monitor its repayment and possible debt collection.

The bank also wanted all the documents to be continuously archived in the electronic form. In this way, building of the bank's own database on creditors would begin, allowing for the implementation of statistical methods to support the risk assessment (scoring) process and internal ratings. This, in turn, would allow for automation of the credit portfolio monitoring and for future implementation on advanced methods for capital requirements calculations.

Loan granting at banks

The loan granting process at cooperative banks looks similarly as in commercial banks, yet it is less formalised. Cooperative banks are local and small, which is an advantage to their customers. During the first contact with the bank, the customer presents his crediting needs and repayment capabilities. Bank’s staff assesses the situation and prepares a preliminary proposal to the customer. If it is approved, the formal process of loan application preparation begins. The completed application is sent to relevant services, where it is verified and assessed; e.g. the customer’s financial situation is checked, his crediting and debt history, as well as financial profile. On this basis, terms for loan repayment are determined, and the preliminary proposal is rendered more detailed. After its acceptance by the customer, the bank prepares the agreement.

Before the implementation – manually on paper

Before the implementation of CasePro, all the phases of loan granting process were supported manually, which took lots of time. Often, there were no clear rules, the process was non-standardised, and decisions were made rather subjectively. Paper documentation was principally used, both as regards completion of application forms, and conclusion of agreements. It was also burdensome to search for necessary information in external databases, such as BIK (Credit Intelligence Office) or BR (unreliable customers' database).

Standardisation and automation after implementation

At present, loan application processing is electronic and is supported by the system at all phases. Many processes have been automated, and document flow is standardised.

The core functional part of the implemented system is the recording and processing of loan application forms with the modules: decision-making, templates and document generation, reporting and data exchange with external systems. Processing of loan applications in the system occurs in phases that are interrelated, and which switch automatically to the next phase.

System-supported flow

When the customer addresses the bank with a question about a loan, the staff prepares a preliminary offer using the data contained in the internal database, while in the case of a new customer, using the data gathered during the first contact. After arranging with the customer, the application is registered. CasePro imports the previously input data and completes them with the data not necessary during offer preparation. It is worth mentioning that the system provides for a number of validation rules to continuously verify correctness of data input, which positively affects the quality of the database created and facilitates data input.

After completion and confirmation by the customer, the application is closed and sent for verification in external systems. It is checked there in the aspect of crediting-financial history in external sources: Credit Intelligence Office (BIK), Polish Bank Association database, unreliable customers’ database (BR) and reserved documents database (DZ). Verification with this data results in allocation of a specific status to the customer. Moreover, data gathered in the application are subjected to verification within the scoring card (for individual customers in the case of cash loan) or rating card (for institutions – upon investment loans). Here, customers are also allocated to specific risk groups.
Next, having the customer’s image from BIK, BR, DZ and scoring/rating card, the system sets recommendation, assessing the customer’s credit eligibility. Application with system recommendation is sent to the analyst who prepares his recommendation. The next phase involves sending all documents to the person making the decision on loan granting. After obtaining positive decision regarding the loan, agreement is prepared and signed, and next funds are launched. Both phases are also supported by the system.

Many benefits and capabilities of the system

CasePro is an advanced tool in the area of customers’ credit eligibility assessment, both in the aspect of quantitative and qualitative assessment. It also offers the possibility of generating reports with a broad range of variables, automatic inquiries to external databases and adjustment of the platform to changing legal environment in the banking sector - says Jolanta Szwedler-Nowacka, Director of Implementations Department at Bonair.

-Owing to the system, we can apply simplified terms of credit eligibility assessment for individual customers, according to the assumptions adopted by the Regulator. This is one of major advantages of CasePro - says Ziemowit Stempin.

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