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Speridian’s BEACON Follow-Up Empowers Canara Bank to Lend With More Freedom, Less Fear

by | Dec 29, 2021

Headquartered in Bengaluru, Canara Bank is the third largest nationalized bank in India. It is under the ownership of the Ministry of Finance, GOI. The Bank has experienced various phases of its growth trajectory over the one hundred years of its existence. As of September 2021, Canara Bank services over 10.50 crore through a network of 9,800 branches and 12,360 ATMs/Recycler across all of the Indian states and Union Territories.

Project Background

The Banking industry in India continued to face a challenging period with an increase in Non-Performing Assets (NPAs), particularly from the corporate segment due to various macroeconomic and other factors.

The Bank realized the need for a follow-up mechanism and close monitoring for Special Mention Accounts (SMA). In addition, the Bank initiated various steps to strengthen the recovery mechanism process. Consistent follow-up of the SMA accounts is imperative to avoid the slippage of standard accounts into sub-standard.

Challenge

To follow-up and monitor a large number of accounts is tedious as it calls for attention to individual loan accounts to track follow-up activities and formulate an action plan.

Monitoring follow-up activities require regular updates from call center and branch officials which loses real-time data in the process and the manual approach poses critical limitations and ambiguity i.e., signal regular alerts to call center and branch officials.

Solution

Canara Bank wished to implement a customizable solution to overcome the challenges in determining the loan defaults and account monitoring. Based on Speridian’s transformative power of automation in banking, and expertise in delivering need-based solutions in the BFS vertical, BEACON-Follow Up was the best solution to resolve the Bank’s challenges.  

Solution Component

Technology : Asp.net core, MVC, Oracle, JWT token Authentication

Results

  • Streamlined and automated follow-up and monitoring of SMA accounts.
  • The bank can vastly improve its ability to handle a large volume of accounts under DPD (Days-past-due) up to 90 days.
  • Unified critical functionalities that the bank needs for follow-up and monitoring of SMA accounts, including the dynamic risk rating of customers, auto formulating follow-up actions, alerts to call center and branch recovery agents, easy updating of follow-up actions, dashboard insights, and MIS Reports.
 

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