Scotiabank envisions instant loan decisions
with technology from Metavante Lending Solutions

Scotiabank is one of North America’s premier financial institutions and Canada’s most international bank. Scotiabank, through its Small Business banking unit, has initiated a project known as the “ScotiaOne Loan Source for business” for the processing and funding of lending products for small businesses in Canada. The program began as a vision for a customer-focused lending experience, which imagined the end-to-end transaction, from application through funding, to occur in minutes, not days.

“Metavante’s CreditWorx” loan system is helping Scotiabank better serve its small business owners with quick credit decisions."

Diane Giard, Vice-President Small Business, Scotiabank

The Challenge

A strategic initiative for Scotiabank – to be the bank of choice for small business owners – motivated the bank to establish and differentiate itself in this fiercely competitive sector of the market. To improve the current lending process and place needed funds in the hands of small business owners, senior management was convinced that the right technology could deliver a competitive advantage by providing a best-in-class customer experience through a quick loan decision.

Considerations

The Bank, determined to lead through innovation, sought to revamp its lending process to deliver an excellent customer experience. The Bank sought a robust and scalable system that could handle loan origination from any channel, featured a sophisticated credit adjudication engine to accommodate an unlimited number of custom score models, and that could provide loan documents at the point of transaction in realtime. Such a system would provide the bank with a technological business advantage. It was also clear that a web-based solution made the most sense.

An open flexible design was also very important since the Bank had a vast amount of customer information from a wide variety of data sources and in numerous incompatible data types. In addition to growth, the return on investment of the initiative needed to deliver efficiency gains by boosting employee productivity.

The Solution

Scotiabank, working closely with Metavante Lending Solutions, has customized Metavante’s CreditWorx technology to offer a one-of-a-kind financing service. Metavante’s proprietary technology platform enables clients to design and model their workflow to meet the demanding needs of their targeted customer segments. CreditWorx has allowed Scotiabank to strategically position itself in both direct and indirect lending channels by quickly leveraging distribution networks. Initially, specific features designed to enhance the ability to deliver best-in-class loan origination services included:

• Multiple loan products on one platform
• Multiple scorecard hosting across all loan product classes
• Intelligent workflow maps to internal business requirements
• Seamless links to complementary Scotiabank lender partners

Other CreditWorx features anticipated to enhance the ScotiaOne Loan Source for business include:

• Ability to handle loan origination from any point of transaction or channel
• Realtime automated credit decisioning for quick customer response
• Realtime documentation at the point of transaction

Value-Added Results

Scotiabank’s implementation of Metavante’s lending automation technology has been very successful and continues to gain momentum as an integral part of Scotia’s suite of services for small businesses. “Results from Small Business banking have achieved expectations since implementing Metavante’s CreditWorx solution and we are optimistic that our vision for a one-stop service model will continue to sustain healthy growth for the bank in this sector,” stated Diane Giard, Vice President Small Business, Scotiabank. The efficiency gains, fundamental to the project’s business case, have been realized through a boost in employee productivity. The automation of repetitive processes has enabled Scotiabank to provide value-added services to customers.

“We are extremely proud of Metavante’s role in Scotiabank’s success, facilitated by the Bank’s visionary leadership and innovation to deploy an automated, online loan origination through closing system”, said Rick Arends, Executive Vice President of Metavante Lending Solutions, Retail Finance Solutions division.

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