Client: WHOLESALE & INTERNATIONAL BANK

Case study: Credit function restructure, business process definition & Basel II process mapping

Business context:   The bank provides credit products to a wide variety of customers:  large corporate organisations, financial institutions, acquisition finance, project finance etc. For historical reasons these were organised into separate silos, which over time led to process inefficiencies and duplication, slowing the decision sanctioning process and reducing customer service levels.

Rule Financial engagement:   Rule designed an integrated business model which defined processes for all key activities across all business types. Process scope spanned new business sales, credit analysis, monitoring and control of loans, and portfolio management. We used our change management framework (Dynamic Process Management – DPM TM) to align people, process and technology aspects, ensuring active buy-in from all stakeholders.

In all we identified over 100 target process changes.  In parallel we reviewed and overlaid the process requirements of Basel II advanced rating to ensure that the future state operating model complied with AIRB requirements.

Benefits:   The new business model dramatically reduces manual effort by removing duplication and “gold-plating”, offering a potential 30% effort reduction.  In parallel, the new processes offer much greater support to risk management professionals, with customers seeing faster decision-making and improved service levels.