Grow profit by making space
Raising lending process profitability and addressing utilisation
Background
Latitude Financial Services (then GE Capital) is a leading consumer finance provider in Australia and New Zealand. It operates across Australia and beyond in the competitive lending market.
Their key objectives were to:
Improve productivity of their lending process
Grow market share resulting in improved revenues
Make loan processing more efficient
Objectives were achieved by addressing noise such as inconsistent process for signing up new loan customers, loan turnaround performance consistently greater than two hours, missing documentation and application rejection occurring late in the process.
Lending process Noise level was 52.23%
Outcomes
Project payback period was 6 months
$20 million net present value benefit achieved
National average loan balanced significantly improved as did the capacity created by reducing time spent on loan applications
Reduction of number of application rejections late in the process
