Magazine article Mortgage Banking

Taking Dashboard Technology for a Drive: Mortgage Lenders Can Benefit from Targeted Business Process Management Technology Tools

Magazine article Mortgage Banking

Taking Dashboard Technology for a Drive: Mortgage Lenders Can Benefit from Targeted Business Process Management Technology Tools

Article excerpt

Limitations imposed by outdated legacy technology systems and inflexible business processes can make it difficult for lenders to manage their business in an efficient manner. It also makes it hard for lenders to balance workloads with the skills of their operations centers; meet customer service levels; and comply with constantly evolving risk and regulatory requirements.

Rather than using manual processes, workarounds and similar tactics to operate within these information technology (IT) platform limitations, leading-edge lenders are using business process management tools to increase efficiency, improve compliance and reduce cycle times.

For example, a leading mortgage and home-equity originator sought to implement an integrated imaging solution in concert with the installation of a new loan origination system (LOS). Multiple processes were integrated into a single centralized document capture, storage and access system that increased productivity by more than 50 percent while reducing cycle times by more than 30 percent. The new system also greatly reduced process errors and misplaced-document errors, in addition to improving the compliance program and tracking the loan's status.

These solutions often are capable of capturing and streamlining enormous amounts of real-time workflow data, such as tasks that have not been completed by an expected deadline. The challenge is to make these data into actionable information.

A large bank implemented a loan origination business process management system that helped to load-balance critical resources via skills- and matrix-based routing of work. As a result, the bank increased throughput and productivity, resulting in cycle time reduction of 30 percent to 40 percent. Automated work was assigned based on role and location, and a total of 12 full-time equivalent (FTE) positions were no longer needed (because of the automation of two manual applicant data-validation processes) so were reassigned to other duties.

Sophisticated, real-time workflow-data dashboard programs are one of the most effective ways to synthesize the massive streams of data generated by these systems and employ a usable set of metrics that can monitor the status of an organization and enable targeted actions by management. A top-20 bank sought to replace a manual, paper-based commercial loan credit process with a seamless, Web-enabled application that would reduce the cycle time needed to create new offerings and increase capacity.

A robust loan-management system that employed a detailed process methodology approach and technology components from leading providers helped to automate workflow for credit-related processes. As a result, the bank reduced cycle times by up to 30 percent in each of several workflows, including: creation of new offerings from existing offerings; pre-validations; electronic approvals; and alternative approvals. The bank also reduced support staff needs by up to 35 percent in the loan booking, document scanning and workload balancing areas.

Performance, operational and compliance dashboards can help managers to achieve a number of related objectives, including providing transparency into processes across an organization; making available simulation and analytical capabilities; and increasing activity monitoring, and the span and depth of management control. Improvements for compliance include mapping policies to procedures and outlining and reporting on control points. This enhanced process capability helps identify potential weaknesses and reduce operational risks.

One example that illustrates this was a finance company in the process of redefining itself through new financial products and services that included retail banking and both indirect and direct lending. The company needed to identify its business process management and enterprise content management capabilities, as well as develop a strategy for future growth and a five-year plan to implement the strategy. …

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