How Edelweiss understands the lifecycle of a stressed asset borrower

This is how Edelweiss Financial Services used automation and data to make lending a little less risky.  

The Distressed Assets Resolution business has its complexities and challenges. Before the implementation of this system, Edelweiss had limited borrower level information, most of the accounting was done manually, there was no structured document repository and reporting was through excel. This was error prone and inefficient. Edelweiss realized that in order to scale up, they would need to make the best use of technology to improve operational efficiency and reduce risk.

“We realized that the solution was to automate and ease the customer journey of a stressed borrower, have efficient decision making on the selection of strategy and create real-time dashboards for senior management,” says Kalpana Maniar, president and group CIO.

Making the high-risk business less risky

Edelweiss team has come up with a solution to address their problems, with Project ARMOR.

Project ARMOR is an end-to-end automation for this business with respect to its business processes. The system is an amalgamation of 3 systems – the core system, the financial modules called FINAMICS and a reporting module called ARCOS.

The five components implemented are Document Management System (DMS), Content Management System (CMS), Finance and Accounting (FA), Loan Management System (LMS) and Workflow Management System (WMS).                                                                                         

With Project ARMOR, the main challenges or problems resolved by the Edelweiss was having an efficient master data management (MDM). “We have categorized data on the basis of its sources and each source represents a system. Therefore, leading to effective and efficient MDM,” says Maniar.

Benefits derived

Edelweiss ARC has managed to reduce manual interventions by 75 percent which in turn has led to reduced errors. The system helped to reduce the time taken per transaction by the user.  The interfaces developed have also helped the users to concentrate on financial output rather than accounting entries. The predictability and growth forecast is done with the help of SAS VA, which is displayed to the user with an in-house reporting module called ARCOS. Real-time dashboards provide borrower and recovery level details on the fly which has helped in better and faster decision making. The project increases the technology quotient of the business which provides a competitive edge. Post implementation, the AUM has increased three folds in a span of three years. In last one year, the profits have gone up by 120 percent. The scalability of the system has helped business to effectively manage exponential growth with the same set of people and has provided senior management with greater decision making insights.