Overview

Founded in 2000, AutoSoft Dynamics is a company in the banking automation sector. It offers clients a complete spectrum of products and services that cater to the needs of the financial services industry.  Its systems are currently being used in several financial institutions in the Middle East, Asia, and Africa.

AutoSoft’s product suite automates both simple and complex processes for banks. The product suite has modules for simple tasks like opening accounts, issuing cheque books, checking balances, processing deposits, transfers and ATM withdrawals, as well as more complex automation, including lending (Consumer, Corporate and Islamic), credit rating, trade finance (import, export, export refinance and letter of guarantee activities) and treasury automation (foreign exchange, money market and corporate office transactions), are available. Modules that automate administrative tasks such as human capital and fixed asset management are also part of AutoSoft’s diversified offering.

HBFCL is the only housing finance institution in Pakistan, established in 1952 by the Government of Pakistan. HBFCL provides financing facilities for construction and purchase of houses through its deep-rooted and national footprint of 75 branches across Pakistan.

In 2018, House Building Finance Company Limited (HBFCL) was looking for a tried and tested solution from a vendor for the provision, customization, implementation & support of Loan Management System (LMS). Their aim was to automate the end-to-end workflow for both Islamic and conventional modes of loaning across its nationwide branches in Pakistan.

Implementation

AutoSoft has a seven-step implementation methodology, which provides a framework for banks and financial institutions in their endeavor toward successful implementations. This methodology enables them to take up a Greenfield implementation in as little as 45 days.

AutoSoft implemented its loan management system at HBFCL’s pilot site within a short span of 3 months. The rollout of the solution across the organization has transformed HBFCL’s lending from a heavily paper based operation, where previously loan disbursement could take up to a couple of months and successfully brought it down to 1-2 days using a completely digitized loan cycle. The system provides a comprehensive dashboard view for HBFCL’s senior management to see exactly how many loan requests are received and processed across the organization, with their turnaround time at each step along the way allowing for elimination of all bottlenecks. The Loan Management System (LMS) was implemented expediently using the AutoSoft’s fast-track implementation methodology.

The different stages of the fast-track implementation methodology include:

Project Preparation

• Identify high level scope
• Develop high level strategies
• Define project schedule
• Mobilize project team
• Conduct product walkthrough sessions
• Conduct gap analysis.

System Configuration

• Define infrastructure strategy
• Set up new system implementation infrastructure
• Hold project team training
• Make key policy decisions

Parameter Setup

• Configuration of system parameters
• Set up system management
• Develop interfaces
• Conversions
• Establish production system infrastructure

Parallel Run

• Test of core application on test data
• Create training materials and end user documentation
• End user training
• Complete data conversion
• Parallel run for pre-defined period

Go Live & Support

• Complete system Management & testing
• Transition from pre-production to production environment
• Complete cut over.

Benefits

AutoSoft’s Lending Management System covers an end-to-end workflow for all operations from loan origination to credit administration with support for both Islamic and conventional lending. It includes a state-of-the-art Loan Origination System, Consumer Lending, Islamic Consumer Advances, Debt Collection, Compliance, Biometric Verification, SMS Banking and MIS reporting system.

AutoSoft’s LMS system assists HBFCL and its customers to process loans with in just 4-5 days and loan disbursement within 1-2 days (which previously took over a month). With this implementation HBFCL will have access to 20+ years of loans on a single platform which was previously scattered across different places.

The solution(s) reduces operational costs to a large extent as the data is stored at a centralized location and can be easily accessed. The system reduces other manual work involved and is designed in a way that will improve profitability and efficiency while providing operational flexibility. The system supports high availability and multiple disaster recovery and backup solutions so that minimum downtime is experienced, and banking services are always online.

Other benefits include:

• Elimination of long paper-based loan application request and processing mechanism.
• Ability to process larger volumes of loan applications within shorter processing times.
• Ability to introduce new and Innovative digital loan products to meet market needs.

Conclusion

AutoSoft was hence able to assist HBFCL in overcoming the challenges it was facing to:

• Support its growing branch network nationwide
• Convert the manual disbursement process to an automated one
• Transform from a manual recovery process to an automated one
• Reach out to agri- and micro-enterprises in rural areas of Pakistan.
• Comply with State Bank of Pakistan’s stringent reporting regulations

Key Facts

Supplier: AutoSoft Dynamics
Headquarters: Lahore, Pakistan
Founded: 2000
Client: House Building Finance Company Limited (HBFCL)
Solution: AutoCREDIT Consumer; AutoLOS
Timeline: Go-live in Sep 2019