Automating its front and backend systems has enabled Consumer Credit to speed delivery of micro-financing to the market, including previously disadvantaged customers, ensuring a cheerier festive season for all. R4 million more cheerful to be exact.
This was achieved without compromising on risk management which is vital in a market sector prone to fraud.
Consumer Credit is a division of Nedcor Limited.
In order to improve customer experience for customers who require finance to furnish their homes, Consumer Credit contracted Abnoba and its associate company Galdon Data, to reduce turnaround time while managing risk.
The market segment for micro financing is very competitive, due to multiple vendors and the small timeframe in which to close the deal. Retailers cannot afford to keep customers waiting to hear whether they can purchase a new couch or TV. These are emotional purchases for which customers aren`t prepared to wait.
Gary Ackerman, MD of Galdon Data, says: "If the customer gets the loan approved while in store, there`s a much better chance of them taking the goods. If they leave they may change their minds or find the goods elsewhere."
A solution based on technology from Abnoba and Galdon Data automated the loan application process with immediate benefits. Electronic application enabled document tagging and tracking, removing the need for manual handling and printing of documents. All client information was extracted electronically, cleansed and processed according to strict business rules, enforcing quality and managing risk.
Abnoba and Galdon Data`s business processing and workflow solution is made up of Captaris RightFax, Validator (rules-based workflow engine) from Galdon Data, TeleForm from Verity and Microsoft SQL server. Validator is a Microsoft .Net based workflow and process automation tool. The benefit of enforcing business rules also enables compliance and process accountability.
Consumer Credit was already enjoying the benefits of electronic faxing from its existing Captaris RightFax investment. Forms Capture was implemented to read and verify incoming applications and supporting documentation. Galdon Data`s Validator was installed and extensively customised to handle workflow and apply the numerous business rules required in this environment.
Consumer Credit has increased market share by providing faster turnaround. Its recoveries now stand at around 80% as compared to 43% three years ago. The company wanted to halve its turnaround time to match its best competitors. It has achieved this, by ensuring applications are supplied with all the correct paperwork up-front.
Slade Bergoff, General Manager: Sales and Marketing for Consumer Credit, says: "After experiencing the pressures of the Christmas festive peak from 2001 to 2003, the automated backend process during the 2004 festive period was a pleasure. We could trace applications and provide feedback to our merchants and clients immediately. Our merchants are very happy with the improved service and our largest chain store group cannot believe how advanced our systems are. Bottom line - we exceeded our festive season target by R4 million."
Cost reduction has also been achieved, with a minimum 80% reduction in paper usage for Consumer Credit.
Says Susan Afek, General Manager: Account Management at Consumer Credit: "We have definitely improved efficiency and reduced costs. We have the capacity to cope with peaks and growth and have maximised staff usage. By setting up queues to manage risk rated by merchant classification, we have the flexibility to tweak application processing to suit the sales process. The merchants are happy with the automated process and we have control of the business rules."
Fairoz Jaffer, CEO, Abnoba, adds: "Consumer Credit was already a dynamic organisation when we started working with them. They were ready to take the next step in their evolution which was to investigate process improvements and workflow to increase Consumer Credit`s efficiencies and ability to process applications quickly. We simply provided them with our experience, technology and solutions."
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