Transitioning from paper to digital car loan processing
USE CASE:
Digitization of Loan Processing
SOLUTION:
INDUSTRY:
DEPARTMENT:
Financial Services
Cloud Architecture | Document Understanding | +2 More
Finance & Accounting | Operations
01 | USE CASE AT A GLANCE
The Challenge
A local bank faced persistent challenges in processing car loan documents from nearby car dealerships. The existing workflow proved inefficient and prone to errors. With the need to manually validate and input information from extensive loan documents, spanning over 30 pages, across multiple systems, the bank's resources were strained. Any errors discovered required manual communication with the dealerships. The lengthy manual process resulted in an average processing time of 14 days, hindering timely loan approvals and customer satisfaction.
The Solution
A comprehensive solution was implemented to address the challenge. A custom web portal streamlined the loan processing lifecycle by enabling dealerships to easily upload car loan documents. UiPath's document understanding capabilities automated the extraction and validation of loan documents, reducing manual data entry. Robotic Process Automation (RPA) seamlessly transferred and integrated the extracted data, eliminating errors and repetitive tasks.
The Results
Implementation of a new web portal, UiPath's document understanding capabilities, and RPA yielded extraordinary results, revolutionizing the bank's ability to provide swift loan approvals and stay ahead of their competitition. The most impressive results include:
92% Reduction in processing times, from 14 days to 1
800+ Loans process per month
7,500 Hours saved annually
02 | THE CHALLENGE
The traditional loan processing workflow is time consuming and error-prone
A local bank has grappled with ongoing challenges in efficiently processing car loan documents received from nearby car dealerships. The existing method required dealerships to scan and mail the loan documents, subsequently requiring manual processing by a dedicated team of processors at the bank. Unfortunately, this manual handling process not only consumed significant time but also introduced the potential for errors and inefficiencies.
The extensive task of manually validating and entering information from the 30+ pages of loan documents across multiple systems posed a significant burden on the bank's resources. Moreover, any errors detected during the manual processing necessitated manual outreach to the dealerships, requesting updated versions of the documents. These manual interactions added complexity and extended the overall loan processing timeline, affecting both customer satisfaction and operational efficiency.
On average, a loan would take a staggering 14 days to navigate through the entire manual process, which further impacted the bank's ability to provide timely loan approvals and meet customer expectations. The need for a more streamlined and technology-driven solution has become increasingly critical for bank executives.
To address the challenges faced by the local bank in car loan processing, a comprehensive solution was implemented. A web portal was developed, providing dealerships with the capability to easily upload all car loan documents in a secure and user-friendly environment. This portal also served as a centralized hub for managing and automating the entire loan processing lifecycle.
To enhance efficiency and accuracy, UiPath's document understanding capabilities were harnessed. This powerful technology enabled the automatic extraction and validation of loan documents, eliminating the need for manual data entry. By leveraging advanced machine learning algorithms, key information from the documents, such as customer details, loan terms, and vehicle information, was accurately captured and verified.
Furthermore, Robotic Process Automation (RPA) played a pivotal role in optimizing the loan processing workflow. The extracted data from the loan documents was seamlessly transferred and integrated into the appropriate platforms, such as loan management systems or customer relationship management tools. This automation eliminated tedious manual tasks, reducing errors and expediting the loan processing timeline.
A comprehensive solution to streamline, automate, and optimize the loan processing workflow
03 | THE SOLUTION
04 | THE RESULTS
Reduced loan processing time for a drastic resource savings and increased throughput
The combined implementation of the web portal, UiPath's document understanding capabilities, and RPA yielded extraordinary results. The average processing time for car loans dramatically decreased from 14 days to an impressive 1 day. This exponential improvement revolutionized the bank's ability to provide swift loan approvals, enabling them to stay ahead in a competitive market.
By embracing these innovative solutions, the bank not only enhanced its internal operations but also strengthened its relationship with car dealerships by providing a seamless and efficient loan processing experience. The improved efficiency and accelerated loan approvals contribute to increased customer satisfaction, optimized business operations, and ultimately drive the bank's success in the competitive market.
92%
Reduction in Processing Time
800+
Loans Processed per Month
7500