Optimising Credit Product Offer Generation

Introduction

In the dynamic realm of financial services, the ability to efficiently generate targeted credit product offers is vital for financial institutions to stay competitive and attract customers. A leading financial institution encountered obstacles in its credit product offer generation process.

Business Challenge

A leading financial institution faced several hurdles in its credit product offer generation process:

1. Redundant Processing : The company found itself engaging in redundant and repeated processing of its entire customer base every time a new campaign was launched. This inefficiency not only consumed valuable resources but also led to prolonged processing times.
2. Extended Timelines : The development and execution of new product policies for campaigns required extensive processing timelines and specialised engineering efforts. This hindered the ability to respond swiftly to market demands and capitalise on emerging opportunities.
3. Complex Processes : The company operated within a complex system architecture, where a singular intricate process governed credit product offer generation. This complexity made system enhancements and debugging a challenging endeavour, hampering operational efficiency.
4. Scalability and Reliability Issues : The existing infrastructure struggled to cope with the growing demands of credit product offer generation. Scalability and reliability issues resulted in substantial cost impacts and posed a threat to the company’s ability to serve its customers effectively.

Solution

To overcome these challenges, the company implemented a series of strategic solutions:

1. Incremental Processing Approach : An incremental processing approach was adopted wherein only new or modified customer data was processed for each campaign. By eliminating redundant processing of the entire customer base, the company optimised resource utilization and significantly reduced processing times.
2. Configurable Modules Implementation : Configurable modules were introduced to separate business logic from data processing. This modular approach enhanced system flexibility and maintainability, allowing for easier enhancements and debugging of the system architecture.
3. Optimised Resource Allocation : Resource allocation was optimised and cloud services were leveraged for elasticity. By strategically allocating resources and embracing cloud technology, system scalability and reliability were enhanced. Robust monitoring systems were also employed to proactively identify and mitigate potential issues, ensuring uninterrupted service delivery.

Impact

The implementation of these solutions yielded substantial improvements:

1. Reduction in Execution Timelines : A remarkable 40% reduction in execution timelines for credit product offer generation was achieved. This enhanced agility enabled the company to launch campaigns more swiftly, respond promptly to market dynamics, and capitalise on emerging opportunities.
2. Operational Cost Reduction : The optimised infrastructure and streamlined processing pipelines led to a noteworthy 70% reduction in operational costs. This significant cost saving enhanced the company’s financial performance and competitiveness in the market.
3. Decrease in Time-to-Market : Time-to-market for new product onboarding was halved, thanks to the streamlined processes and enhanced system efficiency. The introduction of new credit products to the market, gaining a competitive edge and increasing its market share was made rapid and easier.

In conclusion, by addressing the challenges associated with credit product offer generation and implementing innovative solutions, the financial institution successfully enhanced operational efficiency, reduced costs, and strengthened its position in the competitive landscape of financial services.