Bank of Montreal Whips Up Loan Decisions in Minutes
Barthel, Matt, American Banker
Bank of Montreal has completed the first phase of a project aimed at improving its retail services and gathering new business.
Using software from American Management Systems Inc., Fairfax, Va., the bank has greatly reduced the amount of time consumers must wait to get decisions on loan applications.
In the coming year, the bank plans to expand its use of automated decision software while also making use of predictive modeling systems designed to help it sell products and services more effectively. The effort is part of a trend in which banks are working harder to identify their best customers and expand relationships with them. "We have used credit scoring and a whole host of technologies like that over the years" for account management and risk management, said Robert Pearce, a senior vice president at Bank of Montreal, which has more than $100 billion in assets.
"Clearly that technology is now coming over the wall, and soon we're going to be using it on the marketing side," he said.
Initially, the bank has used AMS software, known as Encounter, in its mortgage operations. Loan applications that once took at least 24 hours to approve or decline can now get a decision as quickly as 12 minutes. The system also is credited with increasing automated decisions by 20%. Encounter has helped the bank automate credit bureau information retrieval, decision analytics, and workflow in credit application processing. …