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Personalized bots in loan processing

December 12, 2019 - Richa Dudeja Analyst, Product Management, EdgeVerve

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With the evolution of the Indian economy and hordes of banking products and services on offer, the banking sector has seen exponential growth in recent years. The spur in the banking business has resulted in a tremendous reduction in application processing time, without a significant increase in the workforce. Consider an application in process for a commercial loan request comprising five directors — This application involves details such as credit rating and any previous borrowings for each from a credit rating portal, which takes around 15 minutes for processing each of the details. Imagine having a personalized bot that will not only help reduce the time taken to 2-3 minutes but will also be a morale booster for the processing office.

When it comes to loan processing, the request for a loan application goes through an entire complex process of approvals. Also, more recently, banks are under a lot of scrutiny to rectify their business processes, have minimal losses, and maximum repayment of loan amounts. Several activities are involved in loan processing — For instance, collecting data from multiple sources on a case-by-case basis especially in the analysis of a director’s profile and their net worth and borrowings for the organization who has requested for a loan. The need for robots to take up these tasks whenever required is the need of the hour as they help the processing officer achieve timelines as quickly as possible and having a personalized bot that is available 24/7 for the processing officer will also increase the efficiency.

What is a personal bot?

“Personal bots work on employee’s machine, mostly in attended form and perform tasks for the employee — pulling data from multiple sources to create reports, storing client contact data and even creating regular presentations.

Personal bots can be looked at as a digital concierge for employees in an organization. Through advanced mobile interface and virtual assistants, employees can interact with these personal bots installed on their office machines/systems. The personal bot triggered on-demand or scheduled by the employee, can perform tasks on behalf of the employee, even in his/her absence. Just like a digital concierge, this personal bot on the employee’s machine will be well-equipped to take requests and execute.”1 The personalized bots will prove to be a quick help for executing tasks that are mandated in the approval cycle that is followed by the bank authorities. As a part of commercial loan processing, each loan account undergoes a review cycle at the end of the financial year to have a check on the account health which involves the following:

The time frame in which these details are required varies as there is no specific rule when the processing officer will require the information. This is where a personalized bot comes to the rescue. With a personalized bot, the processing officer can receive the details for further analysis on need basis in a few clicks. Depending on an application, these details can be fetched at the first stage to pass the criteria. However, the initial check can be skipped, and the details can be acquired at a later stage if any of the directors have a borrowing with the bank.

Consider a home loan application process — It needs manual intervention because it is a pre-approved project by the bank and it funds maximum 80% of the property amount, but there has been no given rule to the applications asking for more and is taken case-by-case for approval. Usually, the application is approved based on a lot of factors including credit rating, existing loans or income of the applicants. The processing officer requires these details so he/she can share them with the sanctioning authority and make them available on specific sources like credit rating websites. The officer can also use a personalized robot to obtain these details via a unique ID like PAN card, which will be beneficial considering crunch timelines.

The biggest bottleneck in the banking industry is the repetitive nature of activities being performed which end up taking a lot of time because the tasks run on old-school methods. Identifying the tasks/deliverables by individuals will not only help save time but will also reduce the turnaround time, thereby increasing the efficiency for each person.

Personalized bots as a resource, if immediately available in loan processing cycle for the agent will yield quick returns with the same workforce in the department. The banking industry is evolving and so is the requirement of customers. For communication on what the status of the customer’s loan application is, aiding the processing officer with a personalized bot will serve the purpose and increase customer service, giving you an edge over your competitors. Also, quick processing can be one of the USPs, giving your organization an X-factor in the market.

Addition of personalized bots will play a significant role in bringing about digital transformation, empowering enterprises to reach new heights. So let’s start!


[1] https://www.edgeverve.com/assistedge/blogs/digital-concierge-embracing-future-bots/

Richa Dudeja

Analyst, Product Management, EdgeVerve

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