Automating Credit Limit Increase – Optimizing Bank Operations

Automating the credit limit increase process is a typical operational workflow that demonstrates a paradigm shift in how bank operations function when leveraging technology. This is one of the pivotal business processes directly impacting customer satisfaction and the bank’s operational efficiency.

The Credit Limit Increase Business Process in Banking

The credit limit increase process often involves numerous complex steps, requiring coordination across multiple departments and various systems.

• Request Reception: Customers can submit credit limit increase requests through various channels such as directly at the counter, via mobile applications, websites, or call centers.
• Information Gathering: The bank proceeds to collect necessary information to assess the customer’s financial capacity and credit history. Required documents typically include:
  • Personal records (ID/Citizen ID, household registration, marriage certificate/single status confirmation).
  • Proof of income (salary slips, labor contracts, bank statements).
  • Documents related to collateral (if any).
• Evaluation and Appraisal: The appraisal department analyzes customer information, including:
  • Checking credit history on the CIC (National Credit Information Center) system.
  • Assessing repayment capacity based on income, living expenses, and existing debts.
  • Appraising the value of collateral (if any).
• Approval: Based on the appraisal results, authorized management levels will proceed to approve or deny the credit limit increase request. The approval process may involve multiple tiers depending on the risk level and limit value.
• Result Notification: Customers are notified of the approval outcome through their registered channels.
• Limit Adjustment: If the request is approved, the bank proceeds to adjust the credit limit in the system.
• Procedure Completion: Customers may need to sign amended or supplementary documents related to the new credit limit.

Manual Operational Barriers: The “Bottleneck” Stifling Performance

Operating the credit limit increase process manually presents numerous barriers, negatively impacting performance and customer experience:

• Time and Resource Intensive: Employees must perform many repetitive tasks such as collecting, inputting, verifying information, and circulating documents between departments. This not only increases operational costs but also wastes human resources on administrative tasks.
• Human Error: Manual data entry and verification processes are prone to errors, affecting data accuracy and approval decisions.
• Complex and Prolonged Process: Coordination among multiple departments and the processing of physical documents prolong the time required to process credit limit increase requests, causing inconvenience to customers.
• Difficulty in Tracking and Management: Monitoring file status and processing progress becomes challenging, leading to a lack of transparency and difficulty in risk control.
• Impact on SLA Commitments to Customers: Extended processing times make it difficult for banks to meet response and approval time commitments, reducing customer satisfaction.
• Compliance Assurance Issues: Ensuring compliance with internal regulations and policies becomes more complex when processes are performed manually, carrying inherent risks of errors and fraud.
• Poor Employee Experience: Employees face heavy workloads, time pressure, and monotony when performing repetitive tasks, leading to reduced motivation and work efficiency.

Automating Credit Limit Increase – Solving the Performance Equation

Automating operational processes in banking, especially when applied to the credit limit increase workflow, brings outstanding benefits, significantly improving performance:

• Reduced Processing Time: Information collection, verification, and data entry tasks are performed quickly and accurately by automated systems, substantially shortening file processing time.
• Enhanced Operational Efficiency: Employees are freed from repetitive tasks to focus on more complex, higher-value assignments for the bank.
• Minimized Errors: Eliminating manual operations reduces the risk of human error, ensuring the accuracy of data and approval decisions.
• Improved Customer Experience: Faster processing times and transparent procedures lead to a better customer experience, enhancing satisfaction and loyalty.
• Increased Compliance: Automated systems can be configured to strictly adhere to regulations and policies, minimizing legal risks.
• Enhanced Employee Productivity: Employees have more time to interact with and better support customers, while reducing stress and work pressure.

Statistical Efficiency of Automating Credit Limit Increase Process in Banking

Implementing automation for credit limit increase processes can yield impressive figures:

• Up to 70% reduction in processing time: Instead of taking several days or even weeks, approval time can be shortened to just a few hours.
• Up to 90% reduction in data entry and verification errors: Data accuracy is significantly enhanced.
• 30-40% increase in employee productivity: Employees can process more requests within the same timeframe.
• 20-30% improvement in customer satisfaction: Customers are more satisfied with the speed and transparency of the process.
• Up to 50% savings in operational costs: Reduced expenses for human resources, paperwork, and other resources.

Guide to Applying Automation for Credit Limit Increase Process

To effectively apply automation to the credit limit increase process, banks can follow these steps:

• Analyze and Evaluate Current Process: Identify manual steps, “bottlenecks,” and repetitive tasks.
• Define Automation Goals: Set specific objectives for processing time, accuracy, efficiency, and customer experience.
• Select Appropriate Technology: Consider automation solutions such as RPA (Robotic Process Automation), Workflow Automation, AI (Artificial Intelligence), and Machine Learning to choose the technology that fits the bank’s needs and scale.
• Design and Implement Automation System: Build automated workflows, integrate with existing systems, and conduct testing.
• Train Employees: Ensure employees are trained on how to use the new system and adapt to changes in the workflow.
• Monitor and Optimize: Continuously monitor the effectiveness of the automation system and make necessary adjustments to optimize performance.

akaBot Solution: Case Management and RPA – A Unified Force for Banking Automation

akaBot is a comprehensive automation platform offering powerful solutions to optimize the credit limit increase process:

• akaBot Case Management: Helps centralize credit limit increase requests, track processing status, assign tasks, and ensure SLA compliance. akaBot’s Case Management system provides a holistic view of the entire process, making it easy for employees to track and handle each case efficiently.
• akaBot RPA (Robotic Process Automation): Automates repetitive tasks such as data collection from various systems (core banking, CIC, CRM), data entry, information verification, and report generation. akaBot’s virtual robots can operate 24/7 with high accuracy, freeing employees from tedious and time-consuming work.
• Agentic Automation: Applies advanced AI technologies such as Natural Language Processing (NLP), Machine Learning (ML), and Computer Vision to automate more complex tasks like document analysis, risk assessment, and initial approval recommendations. Agentic Automation enhances automation capabilities in aspects requiring understanding and judgment.

The combination of Case Management, RPA, and Agentic Automation provides a comprehensive and robust automation solution for the credit limit increase process. Banks can build a smarter, more flexible, and more efficient workflow, thereby enhancing customer experience, optimizing costs, and strengthening market competitiveness.

Conclusion

Automation is not just a trend but an essential requirement for the development of the modern banking industry. Applying automation in banking to the credit limit increase process, especially with the support of advanced solutions from akaBot, will help banks overcome the barriers of manual methods, ushering in a new era of efficiency, superior customer experience, and sustainable growth. Seize this opportunity to elevate your bank to the next level.