In order to improve customer experience for customers who require finance to furnish their homes, Consumer Credit contracted Abnoba and its associate company Galdon Data, to reduce turnaround time while managing risk.
Gary Ackerman, MD of Galdon Data, says: "The market segment for micro financing is very competitive, due to multiple vendors and the small timeframe in which to close the deal. Retailers cannot afford to keep customers waiting to hear whether they can purchase a new couch or TV. These are emotional purchases for which customers aren't prepared to wait.
"If the customer gets the loan approved while in store, there's a much better chance of them taking the goods. If they leave they may change their minds or find the goods elsewhere."
A solution based on technology from Abnoba and Galdon Data automated the loan application process with immediate benefits. Electronic application enabled document tagging and tracking, removing the need for manual handling and printing of documents. All client information was extracted electronically, cleansed and processed according to strict business rules, enforcing quality and managing risk.
Ackerman says Consumer Credit has increased market share by providing faster turnaround. Their recoveries now stand at around 80% as compared to 43% three years ago. They wanted to halve their turnaround time to match their best competitors. They have achieved this, by ensuring applications are supplied with all the correct paperwork up front.
Slade Bergoff, General Manager: Sales and Marketing for Consumer Credit, says: "After experiencing the pressures of the Christmas festive peak from 2001 to 2003, the automated backend process during the 2004 festive period was a pleasure. We could trace applications and provide feedback to our merchants and clients immediately. Our merchants are very happy with the improved service and our largest chain store group cannot believe how advanced our systems are. Bottom Line - we exceeded our festive season target by R4 Million."
Cost reduction has also been achieved, with a minimum 80% reduction in paper usage for Consumer Credit.
Fairoz Jaffer, CEO, Abnoba, says: "Consumer Credit was already a dynamic organisation when we started working with them. They were ready to take the next step in their evolution which was to investigate process improvements and Workflow to increase Consumer Credit's efficiencies and ability to process applications quickly. We simply provided them with our experience, technology and solutions."
