Requirements
Remove human error from a risk management process
NDB Is one of Sri Lanka’s largest private banks, which was formed In 1979 as a state owned development bank, and subsequently floated on the Colombo stock exchange as a private bank it continues to play a critical role as a development bank In empowering entrepreneurs and SMEs. Credit risk management is a crucial function in the FSO sector, and monitoring customer covenants play a key role in credit risk management
At the time we were engaged by NDB, monitoring customer covenant fulfillment levels was a manual process that invoked a team of personnel (split between head office and regional offices) reviewing a small sample of the loan book each month to test compliance rates. This was a laborious task managed through spreadsheets and was highly prone to error. Additionally, communication and alerts on this process were done through staff members emailing each other schedules and spreadsheets, creating a maze of information that was difficult to manage.
The bank wanted a solution that removed human error, and created transparency from a control and risk management perspective.
Challenge
Challenge
An RPA solution that offered minimal human interference and automated workflow that was error free, provided accurate data and pipelined data-points from this process to other credit risk management areas.
With our RPA solution, the bank could re-allocate resources more effectively to areas that required critical judgment and decision making.
Our RPA solution had minimal load on the bank’s existing FT infrastructure and fitted perfectly into its other technology platforms and risk management protocols
By using RPA we were able to create a highly scalable and transparent process that reviewed the entire loan book every month (not just a small sample) with minimal human interference
80% Cost Reduction
As a result of the RPA implementation, the bank was able to move resources to priority areas that required human judgement and discretion, reducing the cost of this process by 80%.
Error Free Transparent Process
The project resulted in an error-free process which provided the bank with timely information needed to evaluate credit risk This also created transparency in the process, allowing for a more functional information pipeline.
Rich data points with alternative use cases
With the automation of the customer covenant fulfilment monitoring, the bank was able to turn the data into a format which can be used to enrich the data points available on a given customer, lending itself to better analytics.
With this being the first major RPA deployment for NDB and representing a major milestone in the banking technology landscape in Sri Lanka, NDB has set itself up to lead the charge in robotic process automation in Sri Lanka.
What they say about us
As the First Bank to implement Mainstream RPA in Sri Lanka, we take pride in being the advocator in adopting banking technology in Sri Lanka During this Journey POTENZA worked hand in hand with us to ensure that the capabilities we require were functionally delivered through technology. The POTENZA team houses consulting and engineering talent not only from a technology point of New but for those who have an inherent domain knowledge in Banking. Our partnership with POTENZA has enabled us to better optimize our bottom line resulting in overall cost savings for the bank which is one of the many benefits gained through our engagement Our partnership has now further matured, where NDB bank is the financial institute with the largest Digital Worker Base in Sri Lanka We hope to work with POTENZA even in the future as a strategic partner in our digital transformation road map.
