Project on Optimization of Retail Lending

Objectives:

• Scaling the experience of the best underwriters who decide to issue loans to all areas of the bank lending.
• Identifying weaknesses in the chain of decision making about lending and correction of these places.
• Improving the efficiency of the Bank's lending unit and reducing the percentage of making wrong decisions (leading to non-repayment and delinquency on the loan).

Time frame:

May - July, 2013

Description:

At the beginning of the project, there was a stage to identify weaknesses in the organization of the loan and in the work of persons associated with the decision to issue loans. Further, the whole set of identified remarks was analyzed, and on its basis the main problems were formulated, which were proposed to be solved by the participants.During the main part of the project, the participants together with the project team proposed, finalized and selected proposals to address the identified problems, aimed at summarizing the best practices of the Bank and improving the efficiency of the lending process.

Results:

Ideas with the possibility of direct and straightforward implementation were proposed as well as more global concepts of proposals, brought to the level of the business plan and passed into implementation within the bank.

In particular, the ideas on unification of decisions made by underwriters were brought to the TOP and finalized, a mechanism for scaling best practices was developed, an instruction on psychological evaluation of borrowers was offered, the main problems in the business process and software were indicated. The total annual savings from the implementation of solutions is estimated by the bank more than 7 million rubles.