VeriLoan Helps QDB Reduce Turnaround Time for Housing Loans Qatar Development Bank
Qatar Development Bank (QDB) offers financial services, banking, advisory services and loans for the development of business within the Qatari economy, as well as housing loans. While the bank is primarily focused on investing in and developing local industries by supporting small and medium enterprises in Qatar, it also manages the government-sponsored and funded housing loans to Qatari nationals in order to achieve its 2030 social development targets. The housing loans are the bank's only retail operation and include home construction, reconstruction and purchase loans.
Loan applications and origination processes are complex and require much documentation – from the application form and personal ID cards to architectural drawings and construction permits. All of this documentation needs to be reviewed, approved and stored by the bank, resulting in a long and complex process.
QDB realized that the loan process was taking too long, putting a burden on customers as well as customer service workers. The complex paper loan application forms took between 2 and 3 hours to process. Simultaneously, the bank also wanted to speed up its loan approval process and streamline it in order to make it more customer friendly and more operationally effective. The goal was to create a proper workflow that would support the entire process of loan applications, approvals and disbursement.
The QDB plan was to then build on this platform and extend the application forms online to enable customers to easily fill out the form on the bank's web page. The housing loan business also created additional work for the company's call center, which needed new tools to more easily respond to customer requests, questions and complaints.
QDB began looking for a solution that would support its loan workflows. The company implemented Microsoft Dynamics CRM solution and VeriLoan, VeriPark's loan origination and servicing system automation product. The new solutions were integrated with the core banking system through web services.
"We worked with the bank to focus on several processes that needed to be automated," explained Mohsin Ahmed, Project Manager at Veripark. "In addition to the housing application workflow, we also worked on appraisal, early repayment, exemption and site visit workflows. The idea was to first provide support and automate these processes in the CRM system and then extend them online to further improve customer satisfaction."
Automation for improved turnaround times
By implementing VeriLoan, QDB was able to drastically cut the time, needed to process applications. Automation of processes was responsible for cutting the application approval time from 2 hours to just 15 minutes. This improves the bank's ability to extend and process loans and substantially reduces the overhead for housing loans, which is an important operational advantage. At the same time, all processes are now digital and no longer rely on paper forms, which reduces the number of errors
Online means no more waiting
By extending the process online, QDB was also able to improve the customer experience and satisfaction. The loan application form is now available on the bank's website and can be filled out by the customers in the comfort of their home. Filling out these complex forms used to take 2-3 hours of the customer's and the Customer Services time. Now the customer only spends 15 minutes at the branch, resulting in improved experience. At the same time, Customer Service employees are free to focus on other activities that add more value.
Better customer service
The final benefit is that since most of the loan-related processes are now digital and automated, it is easier to track individual processes. For example, call center employees can take requests, questions or complaints and submit them to relevant departments. Since the processes are digital, they can be easily tracked and the customer can be informed via a text message about the status of their request. These processes include early or late repayment, loan calculations, loan exemption, appraisal and others.
"QDB has embraced CRM as a critical business strategy and has been actively pursuing this mission to offer excellent services to customers. Microsoft Dynamics CRM is a part of this strategy and has made internal operations far more efficient, reduced frustration for customers and provided the bank with more space to concentrate on core strategic aims," said Nasser Rashid Al Humaidi, Executive Director of Operations & Support, Qatar Development Bank