Newgen Case Study on Loan Approval process and Leave Application process automation using OmniFlow and OmniDocs.

1. Case Study BANKING
SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
Automation of Loan Approval
and Leave Application Process
For a leading Co-operative Bank in India
Overview
The bank is one of the leading District Central Co-operative bank in
Kerala. The bank began operations in 1961 and has over 55 branches
across the state.
The Challenge
The bank was using manual process for loan approval which was time
consuming, cost intensive and demanded dedicated resources. The bank
wanted to ensure that the loan documents were readily available and
there was no unauthorized access to these documents.
Benefits
! The time taken for loan
The bank had to reduce the courier and photocopying costs and improve
the turn around time for loan application to ensure improved customer
processing has been reduced
services.
! The flexibility of changing
validations and eligibility criteria
The bank wanted to eliminate the risk associated with physical
is easier, as this can be
movement of the documents and natural disaster, and also to ensure
configured integrity of the data in the documents. It would need an enterprise-wide
! Physical document movement is system, which needed to be fast, seamless, robust and able to support
minimized regular scanning, automatic storing and retrieving of document images.
The bank also needed a scalable and flexible solution to meet its growth
initiatives. That is why the bank chose to implement a workflow
management and Imaging-based Document Management Solution
(DMS) to meet the following objectives:
! Automatic archival of documents
! Easy search and retrieval
! Process Improvement
The Newgen Solution
The whole implementation was carried out at the bank’s head office
situated in Cochin. It was implemented in 2 phases. General
Communication process was implemented at first phase. Only the head
office and some of the branch offices were using the system at the first
phase. Loan and leave processes were implemented in 2nd phase. The
system was used by all the branch offices. The three processes
implemented in the bank are as follows:
Process 1: General Communication:
This process is mainly used to circulate the documents among the
employees of the bank. Typically, the documents were RBI regulatory
related documents, proposals, EC/Board decisions etc.
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2. Case Study BANKING
SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
The documents that needed to be circulated have to be approved by
Branch Manager, DGM, GM, EC or Board based on the level of
approval. The user will initiate the workflow item in OmniFlowTM for
the approval. Once it is approved, the document will be circulated to the
user using ‘Action Item’ features available in OmniDocsTM
Process 2: Leave Application process
This process facilitates the employee to apply and cancel a leave. The
leave application will be moved to the respective department for the
approval. Multiple-level approval is available in this process also. The
system will cross-check the available leaves for the employee based on
the category of Leave.
Process 3: Loan approval process
It is the core process which is used for processing the loan. Data Entry
user will enter the data of the applicant and sureties for a loan. A
specific loan can have multiple applicants and multiple sureties. The
“Fast and easy retrieval of validation will be performed based on the loan type. The validation can
documents has enhanced the also be configured. The successful loan application will be moved for
overall efficiency of the entire further approval.
process. Online availability of
image documents, automatic Once the loan is approved the pre-printed template report is taken. The
customer intimation facility via typical reports are bond reports, sanction order etc.
email, message and fax, enabled
faster turn-around-time (TAT) The Benefits
and lead to an overall Earlier the bank used to process loan applications manually which
operational excellence” involved movement of physical documents across departments and
branches. It was very difficult to control and track the paper documents.
The loan approval, sanction and disbursement period was also very high.
After introducing the Newgen solution, the physical paper movement was
replaced with online digital documents. From time consuming, manual
processing in the branches the bank is now using automated centralized
loan approval process. The time taken for loan processing has been
reduced considerably. The solution also helps the bank by providing
comprehensive audit trail facility for documents. This ensures online
tracking of documents and determining accountability of users. Following
are the accrued benefits:
! The time taken for loan processing has been reduced.
! The flexibility of changing validations and eligibility criteria is easier, as
this can be configured.
! Physical document movement is minimized.
! Reference to existing loan is made easier, as it can be referenced from the
system rather than physical documents.
! More accurate in producing legal documents like Sanction Order, Bond
etc
! Detail of all the activities (Loan processing, Leave processing and
Circulars) can be produced at EC/Board meeting more efficiently.
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3. Case Study BANKING
SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
About Newgen
Newgen Software Technologies Limited is the market leader in Business
Process Management (BPM) and Enterprise Content management (ECM),
with a global footprint of 800 installations in over 40 countries with large,
mission-critical solutions deployed at the world's leading Banks,
Insurance firms, BPO’s, Healthcare Organizations, Government, Telecom
Companies & Shared Service Centers.
Newgen Software has been positioned in the Magic Quadrant for Business
Process Management (BPM) and Enterprise Content Management
(ECM). The company has been recognized by distinguished analyst firms
like Frost and Sullivan as A 'Hot Company to Watch for' in their global
ECM Market report, 2009 and by IDC in its exclusive report “Newgen
Software: Global Leader in Business Process Management and Document
Management Solutions”. Newgen is a winner of prestigious awards, such
as the CNBC-TV18, “Emerging India Award 2008”.
With HSBC and SAP investment, Newgen is one of the rare product
company to have backing of both leading financial and technology
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