Improving a Major Bank’s Consumer Loan Processing


A major local bank, faced two important issues in their consumer loan processing center: speed and quality of loan. The consumer loan processing center is bottleneck for organic growth strategy.


Skha proposed several improvement steps to achieve business targets:

  • a. Improvement in credit workflow and key resource productivity
  • b. Conveyor belt processing system was adopted. Work was streamlined and rearranged into several workstations. This released most of low value-added activities from its most critical resource: the credit analyst.
  • c. Improvement in loan administration and collection unit
  • d. Specific information system modules for administration and collection were developed. Best-practice outsourcing system was introduced to overcome collectors’ limited capacity,.
  • e. Integration of information system
  • f. Information system was adjusted and integrated to reduce administrative work, redundancy, and paperwork.


The cycle time reduced by approximately 60% – 80% (depending on loan products), while number of personnel could be reduced by up to 30%. New scoring system was developed which would reduce credit loss from 6 – 8% (depend on product type) to below 4%.