75% Increase Efficiency

EFL enabled a 79% reduction in end-to-end turnaround time

The Challenge

BTPN, Indonesia’s 4th largest MSME lender, sought to reduce its end-to-end turnaround time for loan disbursements as well as standardize credit operations across its branch network.  However, lack of quantifiable credit data was forcing the bank to rely on subjective, time-intensive risk assessment and making optimal resource allocation difficult.

The Engagement

BTPN piloted two separate approaches to re-designing its loan origination process around the EFL scorecard. By administering the EFL application at different times during the credit review process, BTPN was able to observe each approach’s impact on turnaround time.

The Results

Results demonstrated that administering the EFL application upon first contact with prospective clients could reduce end to end turnaround time by 79% and enable the bank to re-allocate resources from the back office to client-facing, revenue generating positions. Encouraged by these results, BTPN has rolled out this process re-design across its branch network.

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* Default reduction refers to the impact of removing the bottom two quintiles of EFL scorers from the borrowing population