CASE STUDY
BRE Solution Streamlines NBFC's Business Policy Migration
Introduction
The client is one of the NBFCs registered with the Reserve Bank of India as a Non-Deposit Accepting Systemically Important Non-Banking Financial Company (NBFC), headquartered in Pune, is part of the $12 billion Group. Known for their Trust, Passion for Business, and Excellence, the client is now establishing new benchmarks as an NBFC. They offer a suite of loans to empower their customers to meet their financial needs.
Following the client’s acquisition of an NBFC and their desire to establish themselves as a financial conglomerate and leader in the financial market, the Hoonartek team facilitated the merger of their Business Policies and the relaunch of their entire business. Hoonartek implemented PowerCurve Strategy Management Studio (BRE) and incorporated all business policy rules as per stakeholder requirements. This significant undertaking was completed within a record-breaking two months, coinciding with the business relaunch. Hoonartek played a crucial role in streamlining and simplifying the loan journey for the client.
With the business relaunch, the Hoonartek team continued to support and implement solutions for the client. Notably, team implemented new loan products from scratch starting from requirement understanding, prepared BRD, mapping document, policy document with test data and test cases:
- Loan Against Property (LAP)
- Personal Loan
- Pre-Owned Assets Loan
- Home Loan
- Business Loan
The Business Challenge
The client intended to leverage PCSM-BRE as an enterprise-wide decisioning solution to enhance their automated business policy decisions. This decision was driven by the need for a Unified Business Policy considering an ongoing merger proposition involving:
Implementation Variants:
Strategy management solutions facilitate the achievement of diverse business requirements that ultimately impact the organization’s overall profitability. Key examples include:
- Provide control on business processes in Decisioning and risk management areas
- Maximizing revenue opportunities
- Minimizing write-offs and collections costs
- High performance
- Retaining good customers
- Reducing operating costs
However, considering these points in isolation often resulted in contradictory strategies. For instance, maximizing a revenue opportunity through a large credit limit could expose the organization to excessive risk. The business requirement necessitates consistent, relevant decision-making with high performance for each customer segment. Achieving this was central to the Strategy Design Studio, enabling visual and intuitive creation and implementation of customer segments.
Joint Solution Discovery
Hoonartek delivered the solution using the PCSM-BRE software framework. Strategy management combines two functionalities: Strategy Manager (implementing business rules) and Smart Integration to Strategies (interfaces to the DA from external systems).
PowerCurve Strategy Management Components:
- Strategy Design Studio: This software is used by business users to design and build the business rules executed within the Decision Agent.
- Decision Agent: This component executes the strategy in the runtime environment.
- Smart Integration to Strategies (SIS): This component provides interfaces to the calling system and external data sources.
Strategy Management enables the client to develop and implement their own strategies. The cycle of designing, monitoring the effectiveness of the strategy, and enhancing the existing strategy will be a continual process and will allow the client to maximize the opportunities across different portfolios.
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Solution Implementation Plan
Business Relaunch Requirements vs. Ongoing Business Analysis:
In response to the client’s specific request for a unified business relaunch, our SME team conducted a thorough analysis of the current system and proposed changes. We clearly demarcated all changes and identified solutions to address them. We finalized the business requirements based on the BRD document, and upon receiving sign-off from the client, the team moved forward to the next phase.
Redevelopment of Entire Project with Revised Business Policies within Time:
Development focused on BRE strategy and decision orientation to ensure seamless integration of business policy rules into actual operations. Following client confirmation, business policies were developed in BRE for each product, incorporating specific credit policies.
To guarantee smooth project completion, the team divided the BRD into distinct categories to achieve timely delivery for the client. During this process, the team tackled policies individually, clarifying them with the client from a business perspective and developing logic that simplified the implementation process.
Sanity & End-to-End Testing:
The Hoonartek team initiated standalone (unit) testing to verify the accuracy of the developed logic based on the credit policies and business rules provided by the client. The client provided real-time scenarios for testing, which were assessed using BRE. Once the output met expectations, the client granted approval.
Following sign-off, the team tested scenarios in the UAT environment (similar to the pre-production environment), where dummy data is fed into the business flow using JSON or XML to generate output. Once UAT testing was successful and the expected outcomes were achieved, deployment to the production environment commenced. For each product, the team maintained separate LLD and Rejection Master (reject codes displayed on the front-end portal) for future reference.
Outcomes
High-Quality Product & Seamless Business Flow
The proposed solution guarantees the highest product quality and a smooth business flow free of technical interruptions and delays.
It upholds stakeholder standards and fosters trust within the business team and collaborations.
Efficient Implementation & Real-Time Utilization
Leveraging our expertise in BRE implementation and lending domain knowledge, we delivered a high-quality solution.
The solution included a comprehensive implementation plan and a well-designed solution that stakeholders can readily use without difficulty.
The solution facilitates best-fit deal structuring, mortgage suitability, optimal deal creation strategies, and flexibility in business and policy rules.
Proactive Support & Streamlined Decision-Making
The team provided solutions and suggestions for an existing solution, ensuring that stakeholders benefit from uninterrupted service and a seamless business flow after successful implementation.
This results in time savings and simplifies the decision-making process, even with complex policy rules.
Recommendations
Hoonartek leverages its deep understanding of the lending domain and cutting-edge technologies to empower customers with data-driven decision making. Our expertise in data analysis helps customers leverage the right information and map it effectively to Business Rules Engines (BREs). With a proven track record of successful implementations for over 20 banks and NBFCs, we offer seamless integration with various external systems, ensuring a streamlined and efficient lending experience.
