Industry
Banking
Banking Services Transformation: Unlocking Exponential Value
Solution
TCS BaNCS™
TCS BaNCS™: Enabling Transformation in Banks and Financial Institutions
Highlights
- Financial institutions (FIs) need the agility and flexibility to customize document templates quickly and scale while ensuring specificity in contractual documents, appropriateness for the lending context, and compliance with regulatory guidelines.
- The documentation challenges in lending are large volumes, disparate templates, and a long, error-prone production cycle.
- TCS BaNCS reduces document production time, enhancing accuracy and collaboration.
On this article
Customize documents
Lenders must deal with a plethora of document templates. For example, the corporate credit department of a major European bank produced more than 350,000 loan and security documents. When we consider other departments and lines of business, document volumes can quickly grow to an unprecedented and often unmanageable level.
Yet the commercial lending business is poised for expansion, with one credit bureau reporting over 70% growth in Indian commercial loans. Furthermore, unlike retail/ individual borrowers, corporate borrowers require specific terms and conditions on both the lender’s and the borrower’s end. These factors heighten the challenge of managing document templates and loan documents.
FIs need the agility and flexibility to customize document templates quickly and scale while ensuring specificity in contractual documents, appropriateness for the lending context, and compliance with regulatory guidelines.
Documentation challenge
The documentation challenge in lending: Large volumes, disparate templates, and a long, error-prone production cycle.
Sheer volume
Contracting between borrowers and FIs involves numerous documents – loan agreements, terms sheets, security documentation, sanction letters, leasing agreements, offer letters, and credit documents – as well as inward-facing documents such as credit assessment memorandum, executive summaries, and board resolution documents, to name a few. The sheer volume of these documents requires intensive effort for production, as well as for corrections and periodic enhancements mandated by legal frameworks.
Subpar manual processes
In the absence of a systemic process, variations or errors are likely to enter templates. A manual approach to data entry, formatting, production, review, and verification further degrades documentation quality while also increasing processing time. This increases risk, degrades customer satisfaction, and places workloads on people who can otherwise be deployed to higher-value tasks.
Inefficient legacy approach
Earlier attempts to systematize document production, such as data entry or editing applications that generate PDF or MS Word documents, enabled only minor improvements that were only slightly better than manual processes, especially for large-value contracts that undergo an elongated review process with many iterations.
Outward documents capability map
Figure 1: Outward documents capability map
The high turn-around time for document preparation and reaching stakeholder agreement appears even slower in an environment of rising customer expectations, with FinTech and neo banks offering fast services and a superior customer experience.
Rigid change management and document templates
In the traditional approach to document management, FIs must rely on solution providers to enable and deploy changes. The change management process may take weeks before templates get rolled out to customers. This rigidity constrains the flexibility required to handle the variations and specifics of lending.
Template management
TCS BaNCS has pioneered a novel mechanism for managing the production of a large volume of contractual and assessment-related documents, putting document template management into the reach of virtually any financial institution.
With the solution, financial institutions manage templates independently, without the intervention of IT departments and vendors, skipping burdensome change management efforts. Through a simple and secure web interface, credit administration and documentation teams can immediately define or update templates. The credit application process captures customer data and automatically generates terms sheets, offer letters, facility letters, and other essential documents to be automatically sent directly to customers or filed into a document management system for further action. This frees up lenders to focus on client interactions rather than document production.
Solution highlights
Centralized, business-friendly template management
In the traditional document management process, a single change may take a week or more. Our solution allows changes to go from production to deployment within hours. Document templates are managed through a “no-code” template management framework that works with business-friendly MS Word document templates. This gives administrators and business teams the power, agility, and flexibility to compete in the credit lending business with fast turnaround times and an enhanced customer experience.
Eliminate errors and promote regulatory compliance
Manual updates to document templates often result in contracts that contain accumulations of minor changes from one document to another. Automated document production can provide 100% consistency with zero risk of error due to human oversight, improving regulatory compliance and mitigating potential risks.
Efficient process and improved accuracy
By automating document production, FIs can reduce manual employee work and create space for high-value, cognitive tasks. This results in cost savings and improved operational efficiency that can help FIs compete with Fintech and neo banks.
Collaborative, efficient platform
TCS BaNCS unlocks the power of collaboration across the full range of stakeholders, including credit teams, approvers, legal teams, compliance, and documentation officers. The stakeholders have centralized access to document templates, allowing them to work together iteratively throughout the complete document preparation cycle, entirely on the platform.
TCS BaNCS has pioneered a novel mechanism for managing the production of a large volume of contractual and assessment-related documents, putting document template management into the reach of virtually any financial institution.
