Kanradsem Savings & Loan System Request: Loan Approval and Disbursement System Project Team: Karthic Kanmani Surendar Radhakrishnan Adolph Sembera

Project Sponsor Ellen Greenspan, CIO Phone: (281) x

Company Background A lender for the working person A lender for the working person Five locations in the Houston area Five locations in the Houston area Provides medium-interest loans to people with less-than-perfect credit Provides medium-interest loans to people with less-than-perfect credit

Business Need As the company grows, so does application time As the company grows, so does application time Current process requires manual data entry Current process requires manual data entry Manual payment system is causing missed payments Manual payment system is causing missed payments Missed late payment flags are causing lost revenue Missed late payment flags are causing lost revenue due to inadequate collections due to inadequate collections Inadequate reporting tools are causing inefficiency Inadequate reporting tools are causing inefficiency among the five office locations among the five office locations

Business Requirements A system is needed that will: 1. Generate new loans by: a. Automatically accept loan applications b. Comparing them with applicant’s credit report c. Making approve/decline decision based on FICO score based on FICO score 2. Accept payments against a loan 3. Detect late or missing payments and generate collections request if necessary generate collections request if necessary 4. Produce reports to track loan activity

Business Value Alleviating the current manual process would: Improve loan processing timeImprove loan processing time Prevent interest revenue loss due to lost customersPrevent interest revenue loss due to lost customers Lower the rate of loan defaultsLower the rate of loan defaults Increase timely loan paymentsIncrease timely loan payments Increase overall efficiency with reportsIncrease overall efficiency with reports

Reports By the accept/declined status of the application. The system automatically generates a report everyday consisting of the details of each applicant and for how much the loan has been approved. It is sent to the disbursement team for further processing. By the accept/declined status of the application. The system automatically generates a report everyday consisting of the details of each applicant and for how much the loan has been approved. It is sent to the disbursement team for further processing.

Reports – cont.. The system also generates the weekly report consisting of accept/decline ratio, sales figures and other information for the managers for better decision making. The system also generates the weekly report consisting of accept/decline ratio, sales figures and other information for the managers for better decision making.

Payments The system will contain a method for making payments online. The system will contain a method for making payments online. This method will also contain an option for setting up automated monthly payments. This method will also contain an option for setting up automated monthly payments.

Collection The system has the provision for the collection team. The system has the provision for the collection team. The system generates the monthly report for the list of default customers and how much they have to pay as of that month. The system generates the monthly report for the list of default customers and how much they have to pay as of that month.

Special Issues / Constraints The system needs to be in place within six months.