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Loan factory in SAP Banking

iBS Automatic Loan Processor (iBS-ALP) – the tried-and-tested solution for optimizing and automating your loan processes

Product Report iBS-ALP

One requirement and major challenge in optimization projects is the task of modeling processes. To achie-ve significant efficiency gains, the rules and standards particular to each given institution (processes, bound-aries, products, prices, and so on) as well as interaction with customers and business partners must be mo-deled as fully as possible. The problem here, however, is that modeling these elements in a workflow manage-ment system (WMS) is extremely time-consuming and cost-intensive because each process has to be defined indivi dually along with all its variants. In practice, the result can be rather patchy, wasting valuable potential for optimization.

An efficient path to greater efficiency

iBS-ALP allows you to model processes more efficiently. Thanks to its innovative architecture, the iBS-ALP flow logic is not modeled in a WMS but at a higher control level. This means that you can map processes more quickly and at a lower cost. Potential for optimizing processes can be leveraged more effectively without breaking your original budget, thereby significantly in-creasing the ROI from your SAP investments.

The unique ALP architecture offers further benefits for day-to-day business operations such as reduced complexity through centralized product and validati-on control, flexibility to add new products and sales channels, and robustness in the face of changes to or-ganizational structures. This gives you the versatility you need to respond rapidly to new (market) require-ments and also reduces TCO.

From selective optimization to full automati-on – as your needs dictate

With iBS-ALP, your loan processes are optimized and automated in several stages.

To begin with, the existing manual process steps are modeled as work instructions using the ALP Process Production Control (PPC) component. These instruc-tions give users contextual information about the re-quired work steps within their SAP working environ-ment. Users can carry out the steps from within a cockpit and also access data, functions, and services of internal and external systems by calling up the relevant transactions. This in itself considerably improves the quality, processing times, and transparency of manual processes. At the same time, the PPC determines stan-dardized KPIs for the process steps.

Next, process steps with a high level of potential for automation are identified on the basis of the KPIs and automated in the ALP. And since the processes have been modeled specifically for the ALP, automation can be carried out with pinpoint accuracy and minimal effort – and without changing the process flow imple-mented.

The last step involves establishing a continual optimi-zation circle. To this end, the KPIs for the individual processes and process steps are continuously recor-ded, analyzed with regard to their optimization poten tial, and, if necessary, automated. This means that you can increase the degree of automation gradually according to your particular needs – right through to full auto-mation.

Not quite “out of the box” – but close…

iBS-ALP has been deployed successfully in banks and loan factories since 2001 and is enhanced on a con-tinuous basis together with customers. For you, this means instant access to a wide range of best practice process and service components that you can adapt to suit your needs, thereby reducing the effort required to model and optimize your processes.

iBS-ALP – The tried-and-tested solution for flexibly optimizing and automating your loan processesThe credit business is defined by growing competition, decreasing margins, and increasingly demanding customers. To respond successfully, it is essential for companies to continuously optimize processes with regard to quality, cost, and processing times. With the iBS Automatic Loan Processor, you have a flexible solution at your fingertips enabling you to model, evaluate, and customize your loan processes quickly and cost-effectively.

iBS-ALP Product Report

Product Report

In Practice

MünchenerHyp‘s Award-Winning Loan ProcessThe “simplified HypoLine approval” process is one of Münchener Hypothekenbank eG’s core business processes. It is used to process around 95 per cent of new business with private customers. The iBS Automatic Loan Processor is the intelligent solution at the heart of the application..

The process starts with a customer con-sultation. The data is entered at the point of sale using a front-end system and sent to MünchenerHyp’s SAP backend.

iBS-ALP validates the entries and then enriches and processes the data in its decision engine on the basis of criteria defined in the system. If the checks are positive, the advisor can print out the loan contracts a few minutes later and conclude the deal with the customer. Otherwise, middle-office employees run a check and then release the deal manually.

Thanks to the “simplified HypoLine approval” process, almost 30 per cent of applications in 2009 were approved automatically and the average processing time reduced to 79 minutes. In June 2010, the solution earned the Best Process Award of the Frankfurt School of Finance & Management.

„The ability to process mortgage applications ra-pidly and cost-effectively is a key competitive fac-tor for us. iBS-ALP allows the processes required for this to be modeled and, where appropriate, automated in a relatively short time. This flexibility makes ALP the ideal tool for us.“

Andreas Werner-Scheer, CIO, Münchener Hypothekenbank eG

Process and service components within the iBS-ALP standard delivery

Loan inquiry and initial processing

• Standardized acceptance of inquiries and contract data including technical checks upon receipt

• Enrichment of data with information from internal and/or external systems

• Credit decision based on each institution’s own catalog of criteria

• Determination and provision of data for creating offers and contracts including pricing

• Reservation of conditions• Creation of borrowers and loans in the CML and

Business Partner (BP) SAP components• Control cockpit for processing exceptions manually

Disbursement

• Creation, modification, and release of disburse-ment inquiries at a financing level in SAP CML

• Verification of the fulfillment of conditions at the respective budget level

• Determination of the permissible disbursement amount on the basis of the conditions that are met

Prolongation

• Automatic maintenance of expiring fixed rate loans in SAP CML including identification of conditions

• Creation of repayments at the end of fixed interest periods in SAP CML

Post Process

• Assignment of incoming documents to existing processes and launching of new processes

Collateral management

• Services to facilitate communication between external systems and SAP CMS

We would be delighted to meet with you personally and show you how you can optimize your loan pro-cesses quickly and cost-effectively. Please get in touch:

Innovative Banking Solutions AGGerd FassbenderProduct Manager iBS-ALPT +49.611.34 10 154gerd.fassbender@ibs-banking.com

For more information and product reports on other iBS solutions, please visit www.ibs-banking.com

iBS - Innovative Banking Solutions AGiBS - Innovative Banking Solutions AG is one of the global market leaders in the design, development, and implementation of SAP-based standard software for banks and insurance companies.

At the heart of our portfolio, we offer solutions for meeting regulatory requirements, managing risks, ensuring tax compliance and automating business processes as well as software suites for specialized banks. iBS solutions are successfully used worldwide by more than 50 banks, insurance companies and organizations.

We design our products in close collaboration with our customers, partners and SAP AG, for whom we develop and maintain core components of the industry solution SAP for Banking.This proximity to the market results in products that set standards.

www.ibs-banking.com

Get in touch: Simply scan the QR code to save the iBS contact information on your smartphone.

Smart Applicationsfor Banking on SAP.

iBS - Innovative Banking Solutions AGBahnhofstr. 27-3365185 WiesbadenDeutschlandT: +49.611.34 10 100info@ibs-banking.com

SAP Software Partner since 2001. ©

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Regulatory Reporting

Risk Management

Tax Compliance

Process Automation

Banking Suites