ABA Banking Journal - November 2007 - (Page 59)

case in point theories about workflow, test out assumptions, and build process—in effect—by using a mapping tool on an electronic interface. It links your process map with the underlying rules and workflow that will help you automate it, and it can be powerful. Customizing “in depth” for complete processing solution client records.” Prior to the arrival of chief technolBut, he points out, the platform ogy officer Ray Gerber, CompuCredit had “was more than CRM” and had extensive a non-standardized approach to prorules, workflow and a platform developgramming, development, and project ment kit that supported extensive cusmanagement. Like so many firms, the tomization, which was a fit for Gerber’s Atlanta-based nonbank, subprime card team of eager code writers. issuer and payday lender “We had the discipline contracted different and skills to run with jobs out under difCase at a glance the technology,” he ferent terms, and Company: CompuCredit recalls. thus had many difChordiant’s Frank ferent technologies Challenge: Different IT jobs under Florence, vice-presiunder the hood. different terms had resulted in a dent and chief mar“When I started lack of standardization. keting officer agrees here in 2004, the Mission: Rebuild the loan originathat CompuCredit, and idea was to stantion platform as a first step to evenits Valued Services dardize, and the tually replacing all legacy systems. division, had an IT first task was the Solution: Company selected a CRM staff with discipline. rebuilding of a system over core and transactional “They developed 169 loan origination systems because of its customer seruse cases, says platform,” Gerber vice and workflow interfaces Florence, referring to recalls. the ability to “render a Gerber, who hails process flow.” (A use case, he said, from South Africa, during a career as a might be “originate loan,” or “retrieve commercial banker and entrepreneur, client credit file.”) has specialized in deploying and mainAs a result of its thorough approach taining complex enterprise resource to development—an approach where a planning systems and other systems stack of services was designed with where lengthy and often tricky integraextensive security and ease of ongoing tion and data normalization spadework development in mind—CompuCredit will was required. be able to, essentially, reuse various The IT exec knew how to take a components for future lending platforms staff-lite, often-outsourced IT function and add many different applications. and whip it into shape. At the same Eventually, all legacy systems will be time, he and his growing staff had to replaced. pick a platform and run with it. Gerber “In some cases,” says Florence, “the and his team evaluated many different clients really need to lean on our contypes of providers from those of core sultants to get the platform deployed. processors to internet transactional site We have no trouble working that way. developers to full-service outsourcers. But I have to say, I was impressed with While each provider had something to CompuCredit’s approach.” offer, a firm with the rep of a CRM Since the interview, Gerber has provider—Chordiant, Cupertino, Calif.— decided to work in consulting again, ultimately proved the best fit. this time in the States. “But the “Chordiant’s system was originally Chordiant project was interesting,” he developed, and evolved over time,” says, “it let me fulfill the responsibilisays Gerber, “from the perspective of ties of my contract, which was to get what would best support excellent custhe company upgraded in a uniform, tomer service with workflow and intereasier-to-manage way.” faces that let firms build complex What can BPM do for mortgage work? The processes that define the retail mortgage industry are highly fragmented across multiple entities and involve significant amounts of paper. A typical loan file will include from 25 to 50 different documents in multiple formats. Typically, errors in documentation aren’t detected until closing. The right automation in an outsource arrangement can help to flag problems sooner. We’ve measured improvements of 25% (quicker turnaround times). Processes designed with this technology can be reorganized to help a bank respond to new strategies. With BPM, geek speak is at a minimum. Processes are defined in business terms. This is an advantage with something like mortgage processing. Alan Hanson, partner, Global Financial Services Advisory Services, TPI, The Woodlands, a suburb of Houston, agrees that outsourcing is not only politically correct these days, it’s practically mandatory. “It’s gone from a line-of-business concern to a boardroom topic,” says Hanson. “The thinking is, if a given bank’s competitor is outsourcing in mortgage or other key areas, a bank board will ask, ‘why aren’t we doing it, too?’ When it’s raining money, nobody’s in a mad rush to get an umbrella.” Nowadays, TPI sees a gradual normalization and best practice rebuilding of the mortgage process. “When the mortgage market was growing rapidly, you had many acquisitions that weren’t properly absorbed. Slower growth has given banks a chance to integrate their operations. Banks are learning how to handle these contracts. And, BPO providers are more sophisticated. www.ababj.com/subscribe.html ABA BANKING JOURNAL/NOVEMBER 2007 59 http://www.compucredit.com http://www.compucredit.com http://www.compucredit.com http://www.tpi.net http://www.compucredit.com http://www.tpi.net http://www.compucredit.com http://www.chordiant.com http://www.chordiant.com http://www.ababj.com/subscribe.html

Table of Contents Feed for the Digital Edition of ABA Banking Journal - November 2007

ABA Banking Journal - November 2007 Contents Editor’s Column Briefing: Good News for Mortgages Sleight of Mind N.Y. Hiring Bonanza May Be Bane Snapshot: A Look at Held-For-Investment Loan Growth ABA Resources ABA Chairman’s Position “The Moose Bank” Thrives on Manufactured Housing Loans Finding the Middle Way for Your Bank’s Retirement Program Pass the Aspirin Cover Story: Self-Service Steps Up DIY U.K. Style Marketing to Millennials Getting Real With “Gen Wired” Ethnic Marketing: Disinterested Banking Getting Good at Global Sourcing Case in Point Turn Compliance on It's Head Banker’s Mart To Advertise/Index of Advertisers The Economy

ABA Banking Journal - November 2007

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