Industry
Banking
Banking Services Transformation: Unlocking Exponential Value
Highlights
- An ever-changing lending cycle has highlighted the need for robust systems to ensure faster processes for operational efficiency and better customer experience.
- Intelligent systems with integrated portfolio and risk management mechanisms have become critical for lean operations and regulatory compliance.
- With its cognitive and process-specific frameworks, TCS Commercial Lending Service comprehensively covers the lending and leasing functions, providing services spanning the entire lifecycle of loan origination and servicing.
On this page
Overview
Accelerating the process of legacy system transformation
In the current economic scenario, financial institutions recognise the need to accelerate the process of transforming legacy systems. They want to move to integrated and intelligent platforms with the ability to provide on-premises and on-cloud services, improve operational efficiency, eliminate manual intervention, and improve customer experience.
Efficient loan and lease processing functions with minimised credit risks have become vital for enterprises. Intelligent systems with integrated portfolio and risk management mechanisms have become critical resources for ensuring lean operations and regulatory compliance.
TCS Commercial Lending Service enables banks and financial institutions to manage critical life cycle events, systematically transform commercial lending and improve economic efficiency for commercial and corporate loans portfolios.
TCS has created product-specific frameworks to transform and improve origination, credit evaluation, and loan servicing functions to augment operational capabilities.
TCS offerings includes the full spectrum of commercial and corporate lending products including commercial and corporate lending, asset finance and leasing, business lending, syndicated loans (agency/participated) and auto and dealer finance. It covers upstream and downstream functions across the lending value chain (onboarding, origination, credit underwriting, loan booking, loan servicing and monitoring operations), helping them in cost reduction, scalability and operations transformation.
Solution
TCS’ comprehensive portfolio of services spans the entire gamut of commercial lending.
Our services are platform agonistic and work across various industries, leading loan origination and loan servicing platforms.
- Business process services: The solution provides end-to-end mission critical business process services across commercial loans, corporate loans, syndicated loans, covering the entire lifecycle from originations, credit, fulfillment to servicing. It caters to diverse business segments such as business banking, mid-market, commercial real estate, asset and equipment finance, auto finance, and syndicated and bilateral loans.
- Domain consulting and transformation: TCS’ domain and transformational experts provide services on benchmarking, operational efficiency, transformation opportunities and creating a digital road map from front- to back-office functions.
- Change management and data remediation: TCS Commercial Lending Service enables IT platform rollouts (legacy to new-age platforms, for example- migrate to Fusion Loan IQ, nCINO), loan data remediation to meet regulatory requirements, business and functional requirement documents, business analysts, UAT services, project management, and enterprise support services.
- Cognitive assets: The solution comes with integrated commercial lending automation and analytics framework and AI-ML-driven accelerators that enable cognitive OCR, automated financial spreading, digital onboarding, automated and cognitive payments application, portfolio and covenant tracking and alerts, automated email tracking and response (integrated business workflow and smart e-mail case management) and advanced data analytics solution apart from digital financing products (BaNCS and core banking platform APIfication)
- BPaaS platforms: The solution helps clients to increase digitisation footprint of products and process with a Machine First Delivery Model (MFDMTM) approach and TCS BaNCSTM partner ecosystem.
TCS capabilities help to review front-to-back lending functions including points of customer interactions with a focus on identifying and removing friction points; and to target operating models, digitisation and automation to enable cost savings and best-in-class experience.
Benefits
TCS Commercial Lending Service has brought tried, tested and tangible benefits to our customers
- Enabled credit analysts to expedite spreading operations by 5-7 times and in turn enabling ~55% quicker lending decisions for a global bank operating from 18 countries.
- ~$150 million reduction in risk exposure for a large European bank syndicated loan portfolio.
- >200% seasonal volume spikes managed for fragmented operations managing critical life cycle events processing for business and commercial loans, separately assisted bank in regulatory conversion project of exiting LIBOR linked loan portfolio to ARR.
- Improved efficiency of lending operations and assisted banks to remain current and consistent on risk and credit management.
- Consistent improvement in CSAT scores; 30-50% cost reduction due to right shoring and rigor in operations
The TCS advantage
By partnering with TCS, banks stand to gain from the following differentiators:
- Domain expertise: With over 20 years of experience in delivering business, commercial and corporate banking services, TCS has built a robust and sustainable ecosystem of people, process, technology and controls. TCS has strong credentials within the commercial lending space, supporting banks across the lending value chain (onboarding, origination, credit underwriting, monitoring and loan servicing operations), helping them with cost reduction, scalability and operations transformation.
- Delivery excellence and risk management: Our continued focus on execution, rigor in operations, talent acquisition, retention, and TCS Global Network Delivery ModelTM (GNDMTM), ability to replicate and create uniform processes across global sites with multiple languages help deliver excellence and quick ramp-up
- Training: Over 20 years of experience in successfully conducting the Commercial Lending Domain Academy for building intellectual capital of associates helps TCS achieve excellence in commercial lending
- Eco-system and strategic alliances: TCS BaNCS platform ecosystem coupled with strategic alliances through Co-innovation Network (COINTM) partners and incubators help customers explore point solutions and accelerate end-to-end transformation journey.
- Partnerships: Banks and financial institutions need more than just the ability to swiftly process complex commercial loan transactions with precision. They need a trusted partner to help them run mission-critical services to support their entire operations. TCS maintains a strategic relationship with its customers by delivering the right blend of people, process, and technology. By supporting the end-to-end value chain, TCS helps banks accelerate processing time, increase productivity, and drive better efficiencies.
At TCS, we work with regional, super-regional, and global banks plus non-bank financial institutions. We extend services across:
- Business loans for business banking customers
- Commercial loans including complex credit structures such as syndicated agency/non-agency loans
- Specialty and commercial real estate finance
- Asset finance, auto-finance and equipment leasing
TCS brings its proven integrated commercial lending automation and analytics framework to augment market leading commercial loan platforms with AI/ML driven cognitive accelerators in a non-intrusive manner. It enables:
- Intelligent and automated data extraction
- Improved data quality
- Enhanced straight through process (STP)
- Strengthened regulatory controls.
Customer stories
Over the years, TCS has delivered significant value beyond labor arbitrage for our customers.
Here are a few examples:
- An over 200% spike handled seamlessly on cyclic volume bulge days in fragmented operations for a large North America-based bank; over 40 processes accelerated transition with language complexity; the deal origination module enhanced and migrated to a single platform; LIBOR to ARR transitioned with process automation.
- For a large European investment bank, automated cash application and reconciliation of general liability (GL) exposure resulted in reduced risk exposure valued at over $100 million. Backlogged volumes were reduced from over 3,400 to less than 70 items in just seven months
- About 30% improvement in cost saving, 20% increase in productivity and enhanced risk management for a North America-based bank through right shoring, continuous improvement, and robust queue management
- About 45% increase in productivity and 15% increase in lease application volumes processed within turnaround time for a US-based NBFC through workflow implementation, digitisation and process improvements.
