Business Process

Running head: BUSINESS PROCESS
Business Process
Name of the Student
Name of the University
Author’s note:

1BUSINESS PROCESS
Table of Contents
Introduction:....................................................................................................................................2
Customer Comments: Approach......................................................................................................2
Process Analysis:.............................................................................................................................3
Waste Analysis:...........................................................................................................................9
Issue Register:............................................................................................................................10
Process Improvement:...................................................................................................................13
Process Implementation Plan:........................................................................................................21
Feasibility Analysis:..................................................................................................................22
Conclusion:....................................................................................................................................22
Bibliography:.................................................................................................................................23

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Introduction:
The Sunshine State Bank is a financial institution that specializes in giving loans. It uses
a manual Business loan processing system which is affecting the productivity of the bank in
today’s highly competitive market. The bank is plagued with performance issues and is quickly
losing customers due to the long wait time in their approval process. The current system at the
bank has a turnaround time of around 10 to 14 days for approving a loan. The executive
committee of the bank has decided to upgrade the current manual system to an automated
business loan processing system. This system is expected to greatly benefit the bank by
drastically reducing the turnaround and processing time of the loan process, increases the
performance of the bank overall and provide increased satisfaction to its customers. The main
constraint in implementing this process is the conversion of the critical paper documents into
digitized formats and also train the current employees in using the new system.
Customer Comments: Approach
Current system analysis and the As-Is model:
The current system uses a manual approach to process and approve loans. In this process,
the customer information is collected manually by the employees and written down with the help
of pen and paper. This takes around 1-2 days. The important documents needed for the loaning
process are also collected from the customer in paper format and stored in files. The file is then
transferred to the verification department where it takes 2-3 days to verify the customer. This is
done via phone calls or personal visits. The file is then transferred to the decision making
authorities who evaluate the borrower profile and decide whether to grant the loan or not. This
process takes around 6-7 days. After than the file is sent for review and further investigations

3BUSINESS PROCESS
before giving the final approval and setting the loan terms. This takes another 1-2 days. Overall,
the current process takes around 10-14 days to complete for one loan cycle.
Future system analysis and the To-Be model:
The process to be implemented or the To-Be model is an automated version of the current
process which helps in automating most of the tasks that are done manually by the system. In this
model, the information collecting and customer verification can be done electronically over the
internet in less than a day. The decision making and loan approval task can also be done very fast
based on the auto generated credit profile of the customer. The whole loan application and
approval process can take less than 2 days in this model. The change in this process and the
improvement can be shown in the graphical format by plotting the turnaround time for the As-Is
model against the To-Be model.
Process Analysis:
The following report is prepared so as to reflect the process of business loan in a financial
institution known as Sunshine State Bank. The entire business loan process is thereby adapted
from the real world case study of a local financial institution in Australia.
Overview of the organization: The Sunshine State Bank is one of the leading providers
of both business as well as personal financial services and is spread across more than 150
branches across the nations. The institution prides itself for achieving some of the very high
customer satisfaction based on the services that they provide. The institution is spreading with a
rapid growing base with a million of customers nationwide. However the bank faces some
unique challenges with respect to maintaining of time and quality while providing loan to its
customers and providing a competitive platform for other banking sectors.

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The business loan services that is provided by the bank falls under the core process of the
bank and requires much improvement in its services. Several serious concerns have been raised
by the senior manager of the institution with respect to the maintenance of efficiency and
effectiveness of the services that are provided to the customers based on loan. The long time
cycle that is faced by customers while getting loan services includes high expenditure for the
overall process also the paper based work that is carried out in the process manually also falls
under the raised concerns. The bank loan services that are provided to the customers and either
commercial lender of various business organizations are mainly carried out with the joint
initiative of the BBS team and the relationship managers while helping the organization in
lending applications related to business loans. The performance manager of the company is
solely responsible for the reviewing and investigation of the business loan process that is carried
out within the financial organization and is also responsible for reporting the performance report
of the loan process to the general manager and to provide necessary suggestion for the
improvement of the performance process.
The current business loan process that is carried out within the organization is framed so
as to facilitate the business organizations with financial provisions while providing loans to
small, medium as well as large scale customers across the entire nation. The current process
comprises of stakeholders of both internal and external and possesses strict legal and regulatory
measures that need to be met during the loan process. The entire process starts by filling up off a
loan application via various channels which is then followed by an internal assessment of the
SSB application. After the loan application is filled it then gets processed in order to get
approved and only after approval the supporting documents that are required for the loan are
forwarded to the external loan center for prior processing of the loan requirement. The entire

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business process of loan approval takes a lot of time for undergoing the review process. The
Denver has conducted an efficient method so as to determine the amount of time that is spent on
the activity. The data that is thus obtained is used for aligning the business strategy of the SSB so
as to introduce an alternative option to decrease the amount of time that is spent while reviewing
the loan related documents. Among the metrics that are observed in the analysis, the time and
motion factor that is determined gives an overall idea that about 30% of the time is consumed
from the banks business process and about 8% is spent on reviewing the document and further
preprocessing it. The overall business loan process consumes about 65% of the time for the
overall review activity and that extends to about nearly 15 days in order to settle down for a loan
application. With the inclusion of the regulatory measures that are placed within the loan
process, the institution also needs to follow high level of quality of information that are used for
filling up of the loan application. The time to time change in the loan policy that is carried out in
the loan process of the SSB although helps in minimizing the risk financially but also consumes
a huge amount of time for settling down the loan requirements. The entire process of loan
sanction starts when a customer lodges a business loan request at the Sunshine State Bank to the
specific person responsible for the task at the respective branch or by means of lodging the loan
request through online website or via any broker. The bank receives hundreds of such loan
requests every month among which only 30% of the application are submitted via online and the
20% is received via in person in the respective branches of SSB. The remaining 40 % is
submitted through the relationship managers and the other 10% by means of broker. The ability
of transaction of the loan is usually completed based on the financial value of the loan and it
generally has the limit of up to $5 million. A relationship manager mainly carries out the bank
loan process for business loans ranging up to or more than $5 million and directs the loan