“Fantastic news! I want to congratulate all who have worked hard and patiently to develop the automated loan process. It is a particularly important milestone for us, and I look forward to the continuation,” says Jorunn Ygre Storjohann, Director of Retail Lending at KLP Banken.
KLP Banken is a Norwegian direct bank offering retail banking products via the Internet. The bank is part of the KLP Group, a mutual-owned company, providing pension finance and insurance services to municipalities and counties, hospitals and public and private businesses, and their employees.
In collaboration with Tietoevry Banking, KLP Banken is renewing its digital banking services with a fully digital, secure, and customer-friendly loan process for mortgage customers. Now, the first applications have been tested and verified, and in most cases, the applications are processed in just a few minutes. This is excellent news for the customers who are eagerly waiting for a positive answer to realize their housing dreams.
"So far, we have digitized the loan process for our customers who have a mortgage secured with real estate and need a loan to refurbish or modernize their home. These customers will get a quick response online if the application is in accordance with our credit processes," says Eivind Østre, Head of Digitalization and Business Support at KLP Banken.
“As the new digital services are adopted, the full digital offering will be expanded to an increasing share of our customers," he adds.
The new loan process stems from the bank customers’ need – they want to get a response to their application from the bank easily and at a quick pace. Now, the customer just needs to log into the online or mobile bank and follow the normal application process.
“The solution has been developed over time with small and large upgrades at various stages of the loan process with the goal of a fully automated solution. The latest major upgrade is a rules engine that has enabled the bank to have a precise sets of rules based on the bank's credit rules. At the same time, data is collected automatically from all relevant sources. To sum up, we have a correct basis for decision-making and can process the case automatically," says system analyst Jørgen Braaten. He developed the solution together with the team in Loan & Financing at Tietoevry Banking.
"It is not that many years ago when the processing time on loan applications could take up to four weeks. With the new solution, the processing time will be five minutes and up to three days for cases that need more thorough treatment. This allows us to scale the application volumes with today's organization," says Østre.
Based on new digital tools, KLP Banken can increasingly simplify case processing and control the cases to be processed automatically and cases to be assessed by an advisor before approval.
"We are able to allocate our resources in a smart way and ensure a good follow-up on the cases that require it. For our employees, it is an opportunity to work more proactively," says Dagrun Aarnes Nisha in KLP Banken.
Over the past couple of years, KLP Banken and Tietoevry Banking have had a great working relationship. The parties emphasize the importance of a close dialogue and effective interaction. The key to success lies in banking insight in combination with technical insight and efficient utilization of data.