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Home > Case Studies > AFS Automates and Integrates Large Bank's Loan Operations for Greater Competitive Advantage

AFS Automates and Integrates Large Bank's Loan Operations for Greater Competitive Advantage

With growth as their highest priority, one of AFS' large bank clients, a more than $40 billion financial institution, began aggressively building relationships with small business and middle market customers in addition to increasing return on capital and managing margins. But when the bank realized their plans for growth were being threatening by the challenges of decentralization and manually driven loan operations, they turned to AFS for help. AFSSolutionTM has more than met their expectations by delivering centralization of information, improved lending process efficiencies, reduced risk and increased deal flow.

Offering a full array of commercial and consumer banking products and services, the bulk of the bank's $30 billion total loans are concentrated in commercial banking and real estate. In order to improve efficiency, gain sufficient economies of scale in operations and improve deal flows, the Bank needed to find a single-threaded, fully integrated accounting engine that could automate origination, approval, booking, servicing, and reporting of commercial lending transactions. Specifically, the bank wanted to be able to automate the handling of loan fees, account for them correctly, create a complete set of management information inclusive of fees, and ensure their billing and collection. They also wanted the capacity for executive level reporting.

AFS Delivers True Value through the Power of AFSSolution

The bank found its remedy in AFSSolution, an integration of origination, accounting and reporting modules that work together to improve efficiency in loan operations and ultimately increase revenue. The AFSSolution package was comprised of AFS Origination and AFS ParalenderTM systems, AFS Level IIITM accounting system, and AFS Lender WorkstationTM for back end reporting.

Once fully implemented, the bank can expect streamlined lending processes including:

Increased Deal Flow, Cross Selling, Sales Growth and Market Penetration. The bank can expect sales of both credit products and non-credit products to increase and interest income and fee-based revenue to show a marked jump with AFSSolution.

Reduced Revenue Leakage. AFSSolution will reduce revenue leakage, ensuring that fees are charged or assessed when they are supposed to be and that the proper offsets are issued between the loan system and General Ledger (GL), between income and receivables. This extends to loan fees like up-front fees or unused fees or to fees to be paid for things such as appraisals, etc. AFSSolution will also enable the bank to track exceptions, including situations where fees are waived, ensuring the more consistency in fee collection.

Improved Knowledge. The bank will be able to extend the knowledge deeper within the organization down to individual lines of business, relationship, loan, and relationship manager level and provide a more thorough understanding of the dynamics of each unit, market and line of business. AFSSolution will also help the bank track deals lost and monitor cross-sales opportunities, enabling the bank to leverage information to become more nimble.

		Increased Deal Flow, Cross Selling, Sales Growth and Market Penetration. The bank can expect sales of both credit products and non-credit products to increase and interest income and fee-based revenue to show a marked jump with AFSSolution.
		Reduced Revenue Leakage. AFSSolution will reduce revenue leakage, ensuring that fees are charged or assessed when they are supposed to be and that the proper offsets are issued between the loan system and General Ledger (GL), between income and receivables. This extends to loan fees like up-front fees or unused fees or to fees to be paid for things such as appraisals, etc. AFSSolution will also enable the bank to track exceptions, including situations where fees are waived, ensuring the more consistency in fee collection.
		Improved Knowledge. The bank will be able to extend the knowledge deeper within the organization down to individual lines of business, relationship, loan, and relationship manager level and provide a more thorough understanding of the dynamics of each unit, market and line of business. AFSSolution will also help the bank track deals lost and monitor cross-sales opportunities, enabling the bank to leverage information to become more nimble.