Home Equity line of Credit BanksCredit banks' home equity line
In view of the major turbulence on the mortgages markets, granting credit to consumers is more important than ever as part of a growing private bank's business model. Since 2002, the housing industry (including credit facilities for home loans) in this segment has grown by over 11% in the United States to $10.1 trillion in the second quarter of 2007.
Consumers' other debts are at $2.4 trillion and grow at a 4% pace. Being a large and expanding part of a retailing banking operation, many banks have thought about how to make the processes more effective. "Automating can provide many advantages to the credit approval lifecycle. Those advantages include both the benefit to the business and the benefit to the consumers and can directly add to the bottom line and client satisfaction," says Jacob Jegher, co-author of the paper and leading researcher.
"Participating banks will use automated and credit allocation to make quicker and more consistently informed business decision making, lower cost, improve efficiency, streamline operations, minimize error and improve client services. "Banking system is a swamp of complexity and inefficiency. Borrowing schemes and the associated procedures are no exceptions.
Banking must be investing in the identification of process inefficiencies to enhance response times, enhance client services and increase staff productivity," said Bart Narter, co-author of the paper and leading researcher. "There are still opportunities even with the current US credit markets volatile. Banking must concentrate on the installation of long run support frameworks - frameworks that enable banks to react to changing markets, customers and business needs.
" Both BECU and Bremer have been investing in the automated extension of credit to private individuals to improve their capacity to win clients in this area. Both of these banks wanted to reconsider their credit policies for private individuals to make the business quicker, cheaper and more scaleable.
located in Seattle is a perfect example of a finance company that has successfully implemented a new credit system as part of a major technological initiative named DELTA. The BECU positioned itself for expansion on both the deposits and loans sides of the business. It was the Bank's objective to create a new system with the following objectives: quicker decision-making, improved efficiencies, the possibility to provide risk-based prices and new categories of products.
Speedier decision-making allowed the BECU to increase the part of the loan to consumers and to enable its frontline personnel to respond much more frequently to members' requests for immediate assistance. Lower costs allowed BECU to value its product in a competitive way to gain the deal. Today, this groundbreaking financial institution committed to Information Technology Inc.
and Harland Financial Solutions to implement an end-to-end centralized lending and deposits control system. Bremen has made it its goal to create a system with the following objectives: to enable customer advisors to communicate more efficiently with clients; to provide assistance with customer information needs in the areas of financial performance, relationships and returns; to enable interoperability and extensibility; to increase efficiency and eliminate the need for manuals; and to increase auditability.
Advantages included eliminating duplicate and wasteful work, automating regulatory Compliance requests, advanced report engines, increased auditing capability, streamlined technical assistance and service, and increased levels of BI.