Loan Origination AMBIT RETAIL BANKING

A current area of focus for many banks is loanorigination; a part of banking still typified byfragmented, paper-based, largely manualactivities, and characterized by slow, unresponsiveservice for customers; a high error rate; andpotential compliance issues for the bank.

Ambit Loan Origination (LO) enables banks toaddress this outdated situation. It is a process-driven solution which automates and supports theentire loan origination cycle, from the initialapplication capture through to credit scoring,approval, customer acceptance, documentationand final loan booking.

The benefits of implementing the system aresignificant: a higher level of productivity, reducedcosts through the automation of previouslymanual tasks, and improved oversight of the loanorigination process. And since the bank is able toturn around loan applications faster and handlequeries more efficiently it also results in a muchhigher level of service for customers.

Similarly, as considerably fewer resources areneeded to move existing loan applicationsthrough the system, staff are freed up to

concentrate on bringing new credit products tomarket in a timely fashion to help the bankmaintain its competitive position.

Ambit LO is one of the components within theAmbit Enterprise Banking Suite (EBS) ofapplications.

Ambit EBS is a front-end platform for retailbanking that integrates the multiplicity ofinformation and processes relating to customersales, service and transactions in a seamlessinterface. Delivered via modern SOA standards,Ambit EBS helps banks leverage information fromexisting enterprise applications, data andprocesses while supporting the flexible businessprocesses needed for banks to respond quickly tochanging business conditions and evolvingcustomer needs.

Additional Ambit EBS components which can bedeployed to complement Ambit LO include:

• Ambit Customer Service Platform (CSP)• Ambit Branch Teller Platform (BTP)• Ambit Online Banking (OB)

AMBIT LOAN ORIGINATION: A NEW APPROACH

Infinity Process Platform

Integration & Business Process Management Layer

Automating the entire loan origination process while retainingflexibility.

The loan origination cycle in many banks is a time-consuming, largely manual procedure involvinga number of departments and redundant activities.These outdated processes do more than slow downthe loan outcome for customers; they invite errors,can cause compliance issues and, because of theconsiderable resources needed to move existingloan applications through the system, they hinderthe speed-to-market of new credit products.Coordination across functional teams, branches andorganizational hierarchies is fragmented andfrequently involves disparate systems; customers arerequired to provide the same informationrepeatedly in multiple applications; while misplaceddocuments and missing information contribute toprocessing bottlenecks that delay the loanapplication decision.

Many banks struggle with their existing loanorigination infrastructure and the consequent costs

and compliance risks incurred because of themanual steps within the end-to-end processing.

Ambit LO provides high levels of automationthroughout the loan origination cycle to improveproductivity and reduce costs. Based on user-defined, highly configurable businessprocesses and a parameterized product definitioncapability, Ambit LO delivers the flexibility thatallows the bank to adapt products and processesto meet changing business requirements.

User-configurable checklists, process flows,scorecards, pricing, asset valuation, documentautomation and business rule definition all add tothe bank’s ability to turn around loan applicationsfaster, with a higher degree of accuracy, better riskassessment, improved compliance and greatercontrol over pricing.

The schematic on page 3 illustrates the specificbenefits delivered by Ambit LO at each stage ofthe loan origination process.

THE BENEFITS OF THE AMBIT LOAN ORIGINATION APPROACH

User-configurable checklists, process flows, scorecards, pricing, assetvaluation, document automation and business rule definition all addto the bank’s ability to turn around loan applications faster, with ahigher degree of accuracy, better risk assessment, improvedcompliance and greater control over pricing.

Credit ProductDeÞnition

Loan ApplicationCapture

Credit Scoring& Rating

LoanApproval

LoanBooking

WorkßowConÞguration

PricingInformation,DeÞnition &Adjustment

BeneÞtDelivering

New products can be rolled out morequickly, with the ßexibility required too!er the range of products desired forthe target market, enabling the bank too!er competitive products.

Parameters for the deÞnition of newcredit products and associated loanorigination processes.

Pre-population of existing customer andaccount information appropriate to theloan application minimizes data captureand costly manual duplications for sta!and customers. This maximizesprocessing capacity without increasinghuman resources.

Management of integration with otherapplications involved in the applicationprocess (e.g. valuations and creditchecks).

Increased e"ciency and greaterbusiness agility as scorings can beadjusted in response to changes inmarket conditions and scorecardperformance.

Automated scorecard included, withßexibility to adjust weightings of thevarious elements (e.g. salary, investmentincome, etc.)

Facilitates seamless routing andautomated task allocation betweenbank sta! leading to timely creditdecisions and greater STP within theloan booking process.

The ability to design dynamic loanorigination workßows which supportthe entire origination lifecycle.

Support for business rule deÞnition andrule-based routing within the workßowprocess.

Enables banks to tailor pricing againstcustomer categories, ratings and otherclassiÞcations.

Pricing engine to facilitate andautomate the application of pricingstrategies, interest rates, fees andcommissions.

The ability to automatically approve ordecline loan applications automatically,based on pre-deÞned conditions.

Manual decision-making e!ort isreduced and customers receive the loanoutcome earlier. Automated decisionsimprove compliance, enforce bankcredit policy and reduce manualintervention required.

DocumentGeneration &Attachment

Powerful tools allow banks to deÞnetemplates for document generation.Banks may deÞne the required incomingand outgoing documents for each loanproduct and soft copies of documentscan be attached.

Helps banks to maintain consistencyand ensure completeness of critical loandocumentation.

Improves e"ciency in the production ofloan documentation.

The approved loan can be automaticallycreated and disbursed in the back o"cesystem.

Ensures that loan accounts are createdas approved, reducing the opportunityfor fraud.

The automated loan booking improvese"ciency and alleviates the requirementfor manual re-keying of information.

Delivering increased business agilityWhen business demands or regulatoryrequirements force change, banks may beobliged to allocate budget and resources todevelop enhancements and customizations totheir systems, or even to source new solutions.

Ambit LO, however, provides reusableapplications and highly configurable workflowcapabilities which allow the bank to easily modifyproducts and processes to meet changingbusiness requirements, with minimuminterruption to ongoing operations.

Designed with constant change in mind, AmbitLO incorporates a central repository of customer,product and pricing details and is provided witha library of standard activities that can bedeployed to configure product processes. Theseinclude:

Reducing time-to-market for new productsThe high degree of user configurability withinAmbit LO means that new products can be rolledout faster, with the flexibility to adjust supportingprocesses to maintain compliance with regulatoryand management demands.

A highly parameterized product definitioncapability enables bank staff to target new

products at different market segments, using different pricing strategies and customercategories, and can thus provide support forspecific campaigns.

Providing end-to-end oversight of the loanorigination processTraditionally, the loan application is passed fromdepartment to department with differentmembers of staff having responsibility for eachpart of the process. As each participant has sightof their own part of the processing only, it is difficultto respond to customer queries about the progressof the application and this can lead to delays andfrustration for both customers and staff.

Such a fragmented approach is also inadequatefrom a control or audit perspective. The sale offinancial products is often strictly regulated andbanks must be able to demonstrate to theauthorities that certain procedures have beenfollowed, in a specific order.

WHAT MAKES AMBIT LOAN ORIGINATION DIFFERENT?

Ambit LO, provides reusable applications and highly configurableworkflow capabilities which allow the bank to easily modifyproducts and processes to meet changing business requirements,with minimum interruption to ongoing operations.

• Applicant and co-applicant(s) details• Loan requirements• Financial details• Employment information • Collateral management• Collateral valuation• Checklist• Scorecard • Pricing & adjustment• Document attachment and generation• Credit decision• Loan booking

Ambit LO delivers control and audit capabilities tothe bank. The system provides an effective audittrail by keeping an accurate account of ‘who didwhat and when’:

• Each process is defined, followed and its outcome is registered

• A checklist feature is provided to define policies, questionnaires, policy deviations, task completion checks and to prompt any other required activity within the loan processing cycle

Oversight of the entire process empowers the bank staff:

• Loan application status reports are readily accessible

• Staff can respond to customer queries in a much more timely fashion, since they know exactly where each application is in the cycle

Facilitating improved customer serviceTime-consuming and error-prone, the loanapplication process has in the past tended to resultin an unsatisfactory experience for bank staff andcustomers alike. This situation can be costly intoday’s environment where savvy customers are nolonger driven by loyalty, but rather by a “what’s init for me?” mentality.

Ambit LO helps the bank to remedy this situationthrough the transformation of the originationprocess, to make it more efficient and rewardingfor staff, who in turn are able to provide improvedservice to their customers. Benefits deliveredinclude:

• Streamlining and speeding up the loan origination process to deliver faster credit decisions

• Removing the requirement for the customer to have to populate the same details repeatedly through the application process

• Providing more efficient processing through the automation of labor-intensive aspects within the loan origination process

• The use of a rules engine to allow for intervention by the bank’s users at the

different stages of the loan origination cycle; to enable them to offer an alternative product, if, for example, the original request is denied

• Improved oversight of the end-to-end process and more timely resolution of queries

By enabling banks to target consumer creditofferings more appropriately in the first instance,customers are much less likely to be repeatedlyoffered unsuitable lending products, which willfurther improve their disposition towards theirbank.

Ambit LO delivers control and audit capabilities to the bank. The systemprovides an effective audit trail by keeping an accurate account of ‘whodid what and when’.

THE AMBIT LOAN ORIGINATION BALANCE SHEET

Higher service expectationsof retail customers:

• Fewer irrelevant loan offers

• Lending illustration

• Rapid lending decisions

• Competitive credit offer

• Timely resolution of queries

• Minimal data capture requirements

Rapid deployment of newcredit products and agility toadapt business processes

Agility to react quickly tobusiness changes

Increase operational efficiency and reduce costs

Banking Challenges Ambit LO Deliverables

• Targeted campaign management, facilitated by a 360°customer view means that customers are much lesslikely to be offered unsuitable loans

• The Loan calculator enables the illustration of proposedrepayment schedules

• Dynamic loan origination workflows support the entire cycle and reduce the errors and manual intervention which can delay loan application decisions

• Dynamic pricing engine enables the bank to appropriately segment product offerings to match customer requirements

• A process-driven system gives bank staff end-to-end oversight of the process and allows them to easily trackprogress

• Pre-population of existing customer and account data and electronic processing of the application enables theinformation to be accessible throughout the application

• Parameterized product definition capability enables bank staff to target new products at different market segments, using different pricing strategies and customer categories

• Parameter-driven design of new products and associated processes speeds up time to market and reduces IT costs

• Less manual processing frees up staff to concentrate onproduct innovation and other revenue-generating activities

• Business rules can be quickly adapted to meet new requirements with minimum IT costs

• Fragmented, manual tasks within the loan origination cycle are replaced by the integration of people, processes and systems across the operation, improving efficiency, responsiveness and reliability

Differentiation through a superior customer banking experience:

Increase operational efficiency and reduce costs

Ability to meet compliancerequirements

Reduced cost and risk ofimplementing retail lendingsolutions

Banking Challenges Ambit LO Deliverables

• Facilitates integration with other applications, such as those providing valuations, credit checks and insurance quotes to reduce the need for manual intervention with third parties

• The ability to dynamically create loan documents based onpre-defined templates reduces manual intervention typically required in document processing

• Ambit LOS’ scorecard facility contributes to the automation of the lending decision process

• A pricing engine is incorporated to automate the application of pricing strategies, including interest rates, fees and commissions

• Integrated collateral management features allow for automated tasks such as verification and valuation to be efficiently processed

• Automation of loan origination workflows and decision-making enables the bank to drive down processing costs while moving towards a straight-through process model

• Control and ‘auditability’ over the sales process is ensuredby Ambit LO’s process management capability: each process is defined, followed and its outcome is registered

• Provides an accurate account of ‘who did what and when’ to reduce operational risk

• Process-driven, automated originations ensure complianceagainst all credit policies and procedures to reduce credit risk

• Reusable applications and highly configurable workflow capabilities make it easier and less costly to change the system to respond to regulatory changes

• Accessibility of collateral data facilitates enforcement of secured lending policy

• Reduced payback period and early business ‘wins’ throughthe possibility of implementing Ambit LO as part of a wider componentized deployment strategy

• Ability to leverage full customer servicing capabilities through the implementation of other fully-integrated Ambit EBS components

www.sungard.com/ambit

Americas Boston, MA Calabasas, CA Parsippany, NJ New York, NY Sao Paolo, Brazil Stamford, CT

Western Europe Antwerp, Belgium Frankfurt, Germany Geneva, Switzerland London, UK Luxembourg Mechelen, Belgium Milan, Italy

Paris, France Surrey, UK Winterthur, Switzerland Zurich, Switzerland

Eastern Europe Bratislava, Slovakia

Middle East Dubai, United Arab Emirates

Asia Bangkok, Thailand Beijing, China Hanoi, Vietnam Hong Kong, China

Kuala Lumpur, Malaysia Manila, Philippines Seoul, South Korea Shanghai, China Shenzhen, China Singapore Taipei, Taiwan Tokyo, Japan Karachi, Pakistan

Australia/New Zealand Melbourne, Australia Perth, Australia Sydney, Australia Christchurch, New Zealand

©2009 SunGard. Trademark Information: SunGard, the SunGard logo and Ambit, Apsys, BancWare, STeP and System Access are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.

For more information, contact us at ambitinfo@sungard.com

SunGard’s solutions for banking are used by more than 800 banks in 70 countries including 41 of the

world’s top 50 banks. SunGard provides a comprehensive core banking solution and best-of-breed point

solutions for retail, commercial and private banking, straight through enterprise processing, treasury

management, finance, risk and compliance, including Apsys, BancWare, STeP and System Access.

www.sungard.com/ambit

Americas Boston, MA Calabasas, CA Parsippany, NJ New York, NY Sao Paolo, Brazil Stamford, CT

Western Europe Antwerp, Belgium Frankfurt, Germany Geneva, Switzerland London, UK Luxembourg Mechelen, Belgium Milan, Italy

Paris, France Surrey, UK Winterthur, Switzerland Zurich, Switzerland

Eastern Europe Bratislava, Slovakia

Middle East Dubai, United Arab Emirates

Asia Bangkok, Thailand Beijing, China Hanoi, Vietnam Hong Kong, China

Kuala Lumpur, Malaysia Manila, Philippines Seoul, South Korea Shanghai, China Shenzhen, China Singapore Taipei, Taiwan Tokyo, Japan Karachi, Pakistan

Australia/New Zealand Melbourne, Australia Perth, Australia Sydney, Australia Christchurch, New Zealand

©2009 SunGard. Trademark Information: SunGard, the SunGard logo and Ambit, Apsys, BancWare, STeP and System Access are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.

For more information, contact us at ambitinfo@sungard.com

SunGard’s solutions for banking are used by more than 800 banks in 70 countries including 41 of the

world’s top 50 banks. SunGard provides a comprehensive core banking solution and best-of-breed point

solutions for retail, commercial and private banking, straight through enterprise processing, treasury

management, finance, risk and compliance, including Apsys, BancWare, STeP and System Access.