Traditional bank credit processes to ascertain a borrower’s profile before credit is granted is largely manual and involves navigating a patchwork of systems to get the information needed to make a decision.
In practical terms, as Kevin Begg, a senior adviser at Moody’s put it, these processes are as much concerned with the flow of information between those who have it (the borrower and the relationship team) and those who need it to form an opinion (credit analysts and underwriters).
“However, the procurement, interpretation and presentation of this information can often take several weeks and can be a joyless endeavour to boot, especially if you are the bank customer on the receiving end of countless information requests.
“If efficiency is a measure of output relative to the sum of input, then tackling this arduous information process ought to be a priority for banks,” Begg wrote in a whitepaper on the need for banks to modernise their credit processes.
DBS Bank, Southeast Asia’s biggest lender, did just that. In 2016, it kicked off a programme to reimagine the entire credit process for corporate borrowers, culminating in a unified platform that was deployed throughout 2020 to simplify the stages of credit origination and approval, manage the credit lifecycle and automate financial spreading.
Dubbed Credit Architecture Programme (CAP), this initiative has been an engine of major transformation in DBS, encapsulating people in terms of mindset and behavioural change; processes – digitising and fundamentally rethinking them; and platform – using cloud