KeyBank’s consumer lending now runs in real time

KeyCorp has deployed new technology for its consumer lending process to ensure payments run in real time.

On Wednesday, the Cleveland bank announced that it has installed Oracle Banking Origination, an account onboarding and originations product from Oracle that helps it service loan accounts in real time from initial application through payments and collections. Previously, the $187 billion-asset bank used batch processing, which could cause delays between when a payment was received and processed by the bank, and require manual intervention on the back end.

The drive to modernize its loan system traces back to Key’s acquisition of First Niagara Bank in 2016. The bank considers this the final milestone in its journey to consolidate and modernize its consumer lending servicing systems.

Real-time data is “very much a game-changer” for customer service, says Kim Snipes, chief information officer of consumer and digital at KeyBank.

“During our First Niagara acquisition we saw the lending space is one we wanted to prioritize in our backlog of areas to tackle,” said Kim Snipes, chief information officer of consumer and digital at KeyBank, in an interview. “We saw where having a legacy system was not something we could build upon.” 

KeyBank has used Oracle Banking technology since 2017, starting with consumer digital banking services. In January, it converted both its non-real estate lending services — including personal loans and vehicle loans — and its collections service for consumer lending to Oracle Banking Origination’s real-time system from two legacy mainframe, batch-based lending servicing and collection systems that have been in use for over 15 years. 

Snipes said the conversion happened cleanly. 

“Our customers didn’t know we were doing it,” she said. 

The bank declined to give numbers, but said its operations teams can work more efficiently with this change and reduce operating costs. Real-time data processing can help prevent instances of the collections team contacting customers who already completed payments. 

“It’s very much a game-changer when it comes to them being able to more effectively service our customers,” said Snipes.

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