IBM Case Studies Cathay United Bank: Accelerating Loan Approvals with Mobile-Accessible System

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	Cathay United Bank: Accelerating Loan Approvals with Mobile-Accessible System IBM

Cathay United Bank: Accelerating Loan Approvals with Mobile-Accessible System

IBM

Technology Category	Platform as a Service (PaaS) - Application Development Platforms Sensors - Level Sensors
Applicable Industries	Consumer Goods Finance & Insurance
Use Cases	Time Sensitive Networking
Services	System Integration
Challenge	Cathay United Bank (CUB), a subsidiary of Cathay Financial Holding Co., is a major player in Taiwan's banking sector, with a significant portion of its revenue coming from the consumer credit loan business. In 2013, the bank's total loan amount exceeded TWD1 trillion (USD32.25 billion), and its total assets reached nearly TWD2 trillion (USD64.51 billion). However, to maintain its competitive edge, CUB needed to expedite its loan approval and disbursement processes. The bank was facing challenges in responding efficiently to market dynamics and enhancing customer satisfaction. The existing system was not agile enough to meet the changing demands of the market and the expectations of the customers. The bank needed a solution that could streamline its loan origination and servicing processes, improve its response time, and increase its market agility. Read More
About Customer	Cathay United Bank (CUB) is a leading bank based in Taipei and a wholly owned subsidiary of Cathay Financial Holding Co., the largest financial holding company in Taiwan. A significant portion of the bank's revenue is derived from the consumer credit loan business. In 2013, the bank achieved a total loan amount exceeding TWD1 trillion (USD32.25 billion), and its total assets reached nearly TWD2 trillion (USD64.51 billion). The bank is known for its robust financial performance and commitment to customer satisfaction. However, to stay competitive in the dynamic banking sector, CUB continually seeks to improve its processes and services. Read More
Solution	CUB implemented a web-based loan origination and servicing collaboration system to enhance its consumer credit loan business. The solution was built on various IBM components, including IBM MobileFirst Platform Foundation, IBM Business Process Manager, IBM WebSphere Application Server, IBM DB2, and IBM Global Business Services. This system was designed to drive mobility and agility in the loan approval process. It collects performance indicator data, enabling continuous improvement of business processes. The solution also includes built-in risk management policies that automatically calculate the credit limit, loan amount, debt burden ratio, risk level, and level of approval. This comprehensive solution not only streamlined the loan approval process but also provided valuable insights for business process improvement and risk management. The bank also plans to deploy this web-based solution to its overseas branches to strengthen its foothold in the Greater China region. Read More Log in to view content
Contents

Technology Category

Platform as a Service (PaaS) - Application Development Platforms

Sensors - Level Sensors

Applicable Industries

Consumer Goods

Finance & Insurance

Use Cases

Time Sensitive Networking

Services

System Integration

Challenge

Cathay United Bank (CUB), a subsidiary of Cathay Financial Holding Co., is a major player in Taiwan's banking sector, with a significant portion of its revenue coming from the consumer credit loan business. In 2013, the bank's total loan amount exceeded TWD1 trillion (USD32.25 billion), and its total assets reached nearly TWD2 trillion (USD64.51 billion). However, to maintain its competitive edge, CUB needed to expedite its loan approval and disbursement processes. The bank was facing challenges in responding efficiently to market dynamics and enhancing customer satisfaction. The existing system was not agile enough to meet the changing demands of the market and the expectations of the customers. The bank needed a solution that could streamline its loan origination and servicing processes, improve its response time, and increase its market agility.

About Customer

Cathay United Bank (CUB) is a leading bank based in Taipei and a wholly owned subsidiary of Cathay Financial Holding Co., the largest financial holding company in Taiwan. A significant portion of the bank's revenue is derived from the consumer credit loan business. In 2013, the bank achieved a total loan amount exceeding TWD1 trillion (USD32.25 billion), and its total assets reached nearly TWD2 trillion (USD64.51 billion). The bank is known for its robust financial performance and commitment to customer satisfaction. However, to stay competitive in the dynamic banking sector, CUB continually seeks to improve its processes and services.

Solution

CUB implemented a web-based loan origination and servicing collaboration system to enhance its consumer credit loan business. The solution was built on various IBM components, including IBM MobileFirst Platform Foundation, IBM Business Process Manager, IBM WebSphere Application Server, IBM DB2, and IBM Global Business Services. This system was designed to drive mobility and agility in the loan approval process. It collects performance indicator data, enabling continuous improvement of business processes. The solution also includes built-in risk management policies that automatically calculate the credit limit, loan amount, debt burden ratio, risk level, and level of approval. This comprehensive solution not only streamlined the loan approval process but also provided valuable insights for business process improvement and risk management. The bank also plans to deploy this web-based solution to its overseas branches to strengthen its foothold in the Greater China region.

Impact #1	The implementation of the web-based loan origination and servicing collaboration system significantly improved CUB's operational efficiency and customer satisfaction. The solution not only expedited the loan approval process but also enhanced the bank's agility in responding to market dynamics. The built-in risk management policies provided a robust framework for credit limit calculation, loan amount determination, and risk level assessment, thereby reducing the risk associated with loan disbursement. The solution's ability to collect performance indicator data facilitated continuous improvement of business processes. As a result of these improvements, the project received the award for Best Lending Platform Implementation for 2015 during the ninth Asian Banker Technology Implementation Awards Program.

Impact #1

The implementation of the web-based loan origination and servicing collaboration system significantly improved CUB's operational efficiency and customer satisfaction. The solution not only expedited the loan approval process but also enhanced the bank's agility in responding to market dynamics. The built-in risk management policies provided a robust framework for credit limit calculation, loan amount determination, and risk level assessment, thereby reducing the risk associated with loan disbursement. The solution's ability to collect performance indicator data facilitated continuous improvement of business processes. As a result of these improvements, the project received the award for Best Lending Platform Implementation for 2015 during the ninth Asian Banker Technology Implementation Awards Program.

Benefit #1	Reduced the time required to open accounts and complete other transactions by more than 80 percent
Benefit #2	The percentage of cases that pass review within an hour of submission increased from 0 to 85 percent
Benefit #3	Loan applications increased by 73 percent

Benefit #1

Reduced the time required to open accounts and complete other transactions by more than 80 percent

Benefit #2

The percentage of cases that pass review within an hour of submission increased from 0 to 85 percent

Benefit #3

Loan applications increased by 73 percent

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Overview

Cathay United Bank: Accelerating Loan Approvals with Mobile-Accessible System

Operational Impact

Quantitative Benefit