StringData completed an analysis of the optimisation of loan application processes at Raiffeisen Building Society
We worked with the Raiffeisen Building Society team from January to analyse ways to simplify and speed up the application and approval process for housing loans. StringData’s team of consultants looked for opportunities to optimise the process using modern approaches and technologies. From loan application to loan approval.
We succeeded and jointly identified several approaches to speed up and simplify the process for applicants and to ensure reliable information about the applicant for assessing their creditworthiness. The main principles of optimisation was the automation of data extraction from the loan documents provided. This means confirmation of income, bank statements, personal documents and other loan documents. All documents are provided by the applicant and, where applicable, the co-applicant as part of the loan application. Another principle was the introduction of a modern method of verifying the applicant’s income and expenses using PSD2, which greatly simplifies the whole process. This method of verification also ensures the information provided has a higher level of security against fraud.
As part of the analysis, StringData consultants also proposed architecture for the integration of new technological approaches, including PSD2 integration principles and procedures. Together with the methodological changes planned by the RBS risk team, this will be a modern and highly digitalised solution, thanks to which the building society will be able to offer its clients a simpler procedure for obtaining housing loans and, at the same time, simplify the work of sales representatives.
The proposed solution combines the personal approach of sales representatives to applicants. Specifically, during the initial consultancy phase on which loan product to choose and how to proceed in the context of the modern approval process.
Raiffeisen Building Society was founded in 1993 as the first building society in the Czech Republic. For more than 25 years, RBS has been providing clients with comprehensive financial advice and advantageous building savings and housing loans.
In 1998, Raiffeisen Building Society became part of the strong Raiffeisen Financial Group, which operates in 37 countries all over the world. The Raiffeisen family in the Czech Republic also includes Raiffeisenbank, the UNIQA insurance company and Raiffeisen Leasing.
"The optimisation of loan processes is a priority for financial institutions today. We see the rationale for these initiatives in the effort to make the whole process more digital in order to minimise the risks of contact posed by COVID and to reduce the cost of lending by eliminating the manual operations that can be handled by modern technology.
As a result, this benefits the customer, who can obtain a loan faster and more conveniently, and the financial institution, which in turn incurs less cost for the provision of the loan. This is also why we recommended that the bank use PSD2 as an alternative to verifying income and expenses using bank statements. The proposed solution gives the building society the opportunity to also use analysis results t implement a fully digital solution for the provision of housing loans in future.”