Money & Banking

Central Bank of India to set up loan life cycle management system

K Ram Kumar Mumbai | Updated on January 14, 2020

Central Bank of India is planning to set up an end-to-end loan life cycle management system to seamlessly serve and manage customers through all stages of the loan life cycle — it will comprise various modules including those relating to origination, decision making, credit monitoring, collateral management and collection.

By implementing the automated loan management system, the public sector bank intends to achieve cost savings, cut the turnaround time for decisions on all types of loan proposals (including retail, agriculture, micro, small and medium enterprises; and corporate, as well as support different loan products/processes), and ensure that the customer is served better.

“It will be a comprehensive end-to-end system on a single platform, starting from the customer applying for a loan, to underwriting, to documentation, onboarding of the loan account and then credit monitoring,” Pallav Mohapatra, MD & CEO, told BusinessLine.

The bank is planning to issue a request for proposal for procuring the system.

Revamping data warehousing system

Mohapatra said that the bank is also working on revamping its entire data warehousing system to leverage customer transaction data for focussed cross-selling of products and services and offer enhanced credit limits.

The revamped system will have lot of features for data mining and analytics, and on-the-tap availability of different types of reports, which can be customised according to the requirements of each business department, he added.

The Central Bank chief underscored that the retail product portfolio has been rationalised to 12 from 33 earlier. This is aimed at ensuring that officials are able to market the products better and increase customer responsiveness. “The only constant in today’s world is change. It is better that we keep on changing ourselves depending on the requirement of our ecosystem,” Mohapatra said.

Published on January 14, 2020

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