1. Case Study
SOLUTIONS FOR BUSINESS PROCESS & DOCUMENT MANAGEMENT
Loan Disbursement Automation
For a leading MicroFinance company
Overview
The client is a microfinance company and based out of Chennai, India. It
was started in December 2007 with the core focus on micro credit
extended through the grameen model with suitable adaptation.
The client started its operations in Chennai initially, but later extended to
most of the down-south districts in Tamilnadu.
The sales process includes sales process of forming groups, training,
application formalities, credit screening and collection process.
The client has three major products for its credit operations viz. Silver,
Gold and Platinum – each having its own features. It uses BankersRealm
(BR.Net), a microfinance product from CraftSilicon, as the core
application.
Micro credit is extended to expansion in the areas of
! Business (either new or expansion)
! Education
! Loan consolidation/ repay high interest borrowing
The main objective is to develop institutional financial self-sufficiency
and to penetrate breadth and depth wise across the low-income
groups/individuals, profitably.
The client’s mission has been to improve quality of life by increasing total
household asset value of those who are not effectively serviced by the
formal financial sector by providing transparent and trustworthy access
to financial and other relevant products and services by deploying cutting
edge technology and forming partnerships and alliances.
Their vision is to be the leader in MicroFinance in the country.
The client has been a pioneer in its class by crossing various milestones
right from the date of inception.
The Challenge
The client generates around 50-70 centres a day across its operational
locations. A centre is termed as the group formed for loan disbursement.
The current mode of operation has been highly successful in its present
form. However, with the inclination of growing in volumes both at
established centres and at new locations, the client feels that the
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2. Case Study
SOLUTIONSN FOR R B U S I N E S SPROCESS S && DOCUMENT MANAGEMENT
C ONTENT M ANAGEMENT
processing commitment may get hampered. This is because of the fact
that more resources would be required for processing the abnormal
additional volume in the months to come.
As a pioneer, the client wants to automate majority of the document
movement and data-capture activities in order to get the maximum
benefit of automation with a marginal increase in man-power.
The client also wants to leverage on the multi-locational and distributed
operational environments. This is to ensure the optimal cost of
processing. With the aim of business process automation – which
includes eliminating document movement, anywhere access, distributed
capture and automatic data extraction – had requested Newgen to come
out with a solution that will be beneficial, cost effective and that provides
more control over the processes.
The Newgen Solution
Newgen, with its vast experience on business process automation,
undertook the challenge of the business requirement of the client
considering the value proposition of MicroFinance operations.
Newgen, as advised by the client, took a three step approach.
Step 1: Re-designing the membership application (MA) form to
automate data extraction
S O L U T I O S F O BUSINESS P R O C E S
Step 2: Process automation for eliminating document movement.
Step 3: Seamless integration with core application for effective data-
interchange
Newgen, on its part, was definitive on ensuring that
! ‘BankersRealm’ – the core application – is the system of record for all
purposes
! Process automation will compliment all non-core functionalities of the
core application – basically human-system and human-human
interfaces with inclusion of system-system interface
STEP 1: RE-DESIGN OF MEMBERSHIP APPLICATION FORM
The existing membership application form (MA) had many fields to be
filled that was more of yes/no or radio & check -boxes with defined
values.
As a first step, Newgen, with its experience on extraction methodologies,
redesigned the membership application form as an Optical Mark
Recognition (OMR) friendly form. Majority of the fields (close to 85-
90%) of the information captured by the field sales executives with very
less fields for manual entry. OMR have very good accuracy rates and
hence this model was adopted for tick and check-box fields.
This ensured that majority of the data-entry operations are automated
ensuring mere verification and data-entry of only few fields. The per
person productivity of data-entry operators improved significantly.
STEP 2: PROCESS AUTOMATION
The manual document flow within the organization for processing it end-
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3. Case Study
SOLUTIONSN FOR R B U S I N E S SPROCESS S && DOCUMENT MANAGEMENT
C ONTENT M ANAGEMENT
to-end was the next to work on.
Newgen automated the process right from membership application
scanning to loan approval. As is with majority of the core applications,
Newgen provided support to the existing BankersRealm application by
reaching out on data-capture in an efficient way from the scanned forms.
STEP 3: SEAMLESS INTERFACE WITH CORE APPLICATION
Newgen also ensured that the core application, BankersRealm, holds the
right data – as if the processing of membership applications were done in
that application.
Master data is being exchanged on a periodic basis while the core form
TM
data captured in the OmniFlow process is being exchanged through
intermediate repository. Once the core application processes the data
TM
from the intermediate repository and confirms, OmniFlow takes the
next steps towards successful completion of the loan processing.
The advantage of the intermediate repository removed the dependency
on either of the application for processing thus ensuring high-availability
for operational needs.
S O L U T I O S F O BUSINESS P R O C E S
The Benefits
Some of the benefits gained from the solution are and not limited to:
! Increased efficiency in data-entry and verification
= data-capture cum verification form and the scanned image
The
were displayed together in one screen side-by-side. This
eliminated completely the physical document movement.
= other advantage was ensuring that all the member
The
information was entered in total leaving out speculations while
using physical documents.
! Better coordination with field sales officers for any discrepancy in the
MA forms like missing information or insufficient documentation.
! Seamless validated business data exchange with the core application
‘BankersRealm’ on to be processed data and confirmation (customer
id).
! Efficient and easy replacement of members within the group (both
documents and data)
! Complete audit trail of any centre – including members replaced,
original member history, data and documents associated among other
aspects
! Visibility of processing and management of process from anywhere –
as the whole application is web based. Since the client has corporate
office and operations centre at different places.
! Easy porting of application servers to data-centre and remote
management of application (OmniFlowTM).
! Optimal usage of bandwidth between data-centre and location of
operation through implementation of remote image server (caching
server) which ensures local retrieval of images while reflecting the
current state of processes.
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4. Case Study
SOLUTIONSN FOR R B U S I N E S SPROCESS S && DOCUMENT MANAGEMENT
C ONTENT M ANAGEMENT
! Faster rollout across different locations of operation (enabling
centralized and decentralized scanning and usage on the web
interface)
! Easy extension of the process to various intended users across various
locations without extending the core application enabling higher data-
security (of past records)
Newgen Product Suite for Process Automation
TM
OmniFlow – Enterprise Business Process Automation Suite
OmniDocsTM – Enterprise Document Management Suite
OmniExtractTM – Production Grade Form Extraction Suite
TM
OmniScan – Production Grade Scanning Application
About Newgen
Newgen Software Technologies Limited is a market leader in Business
Process Management (BPM) and Document Management System
(DMS), with a global footprint of about 700 installations in over 30
countries. More than 100 of these implementations are large, mission-
critical solutions deployed at world's leading BFSI, BPO and Fortune
Global 500 companies.
Newgen is recognized by distinguished analyst firms like IDC in its
exclusive report “Newgen Software: Global Leader in Business Process
S O L U T I O S F O BUSINESS P R O C E S
Management and Document Management Solutions.” With investments
from HSBC Private Equity Asia and SAP Ventures, Newgen is one of the
rare product companies to have backing of world’s leading financial and
technology companies.
Winner of prestigious awards, such as CNBC-TV18 “Emerging India
Award 2008”, Frost and Sullivan's “Market Leadership Award for
Document Management System and Workflow Software & Services”
and “Distinguished Application Product Company” by NASSCOM,
Newgen Software is an ISO 9001:2000, ISO 27001 certified and CMM
Level 4 company.
Newgen prestigious clients include HSBC Bank, Deutsche Bank, Hua Nan
Bank, ABN Amro Bank, ICICI Bank, IDBI Bank, State Bank Of India, ING
Vysya Bank, CitiFinancial, RAK Bank, Bank of Tanzania, Max New York Life,
Bajaj Allianz., Unilever, Philips, GE Countrywide, EXL, Satyam Nipuna,
iGATE, Core 3, Ranbaxy, GSL, Kenyan Airways and SEC Phillipines.
Newgen Software Technologies Ltd.
A-6, Satsang Vihar Marg,
Qutab Institutional Area, www.newgensoft.com
New Delhi 110 067
Tel: +91-11-26964733, 26963571, 26856871
Email: newgen@newgen.co.in
Newgen Software Inc.
CS-Eqts-1
1364 Beverly Road, Suite 300
McLean, VA 22101
Tel: +1 (703) 749-2855
Email: info@newgen.net