1. IBM Software
A bank in the Middle East Approving loans in 30 minutes rather than two days with IBM WebSphere business process modeling
The need:
This bank faced intense competition. Internal processes were reducing its competitiveness by slowing execution of transactions and development of new products.
The solution:
The bank transformed its loan origination processes using IBM® WebSphere® Lombardi Edition and IBM WebSphere Operational Decision Manager. Also, new business processes make product approvals by the Sharia department more efficient.
“We measure the results of our efforts so far by the timely release of a new loan share financing product that takes 30 minutes to approve versus two days previously. We’re meeting customer expectations, and that is the aim for the whole bank.”
— Chief information officer, bank in the Middle East
Client name: A bank in the Middle East
Subtitle: Approving loans in 30 minutes rather than two days with IBM WebSphere business process modeling
Company background: Founded in 2004, this bank is a joint stock company committed to adhering to Sharia principles in all its dealings. One of the newest banks in the Middle East, the bank has approximately 230 branches and more than 2,300 employees.
The need
As a newcomer to the region, the bank faced intense competition. The bank’s growth was dependent upon offering new products that could be developed and executed quickly. However, for one of its key products, the bank processed loan requests using a system built with point-to-point programming, and approving a loan application took two days. The bank needed to improve this turnaround time.
The bank aimed to shorten loan processing times through product innovation, but this introduced additional challenges. All transactions, contracts and products have to be approved by an internal Sharia department. If the department decides that a product does not follow Sharia, the product and the code developed to automate it are scrapped, and developers go back to the drawing board. Such delays cost weeks in bringing a product to market.
The solution
The bank deployed IBM WebSphere Lombardi Edition for business process modeling and IBM WebSphere Operational Decision Manager for credit decisions and business rules. The solutions integrate with a service oriented architecture (SOA) that the bank implemented to streamline development processes. The SOA uses IBM WebSphere MQ as its messaging backbone and IBM WebSphere Message Broker as an enterprise service bus.
These solutions have transformed loan origination processes across the bank, from account opening to auto leasing. When introducing a new product, the businesses and the Sharia department can see the product at an early stage in the development process, before the IT team has committed extensive time and resources to it. Now the bank plans to apply business process modeling to the rest of its business processes.
The benefit
Allows the bank process loan approvals in 30 minutes, rather than two days
Significantly reduces the time required to develop new products
Enables the bank to meet customer expectations and compete more effectively
The benefit:
Allows the bank process loan approvals in 30 minutes, rather than two days
Significantly reduces the time required to develop new products
Enables the bank to meet customer expectations and compete more effectively
Solution components:
IBM® WebSphere® middleware software
WSP14647-USEN-00