SMBC Consumer Finance starts providing Loan Digital Platform® services to The Bank of Sanjusan

SMBC Consumer Finance and NTT DATA have launched Loan Digital Platform® services for The Bank of Sanjusan on September 5, 2024. This marks the second implementation of the platform, following The Ehime Bank in October 2023.

This platform is the first in the industry to automate data transmission and credit review retry processes between multiple financial institutions and guarantee companies. It digitizes conventional processes such as phone calls, mail, and fax for personal loans, thereby improving the customer experience for loan applicants and enhancing operational efficiency. As a SaaS-based service, financial institutions and guarantee companies can utilize the platform for a monthly fee.

Loan Digital Platform® as part of Medium-Term Management Plan

SMBC Consumer Finance’s medium-term management plan for fiscal 2023 onward states “expanding into new business areas” as one of the strategies, and the bank is working to create new businesses and services while further expanding their loan guarantee business by providing solutions designed for financial institutions. As solutions for financial institutions, SMBC Consumer Finance is promoting the planning and sales of (1) external guarantees for housing loans, (2) provision of the Loan Operations Digitization Platform, and (3) new partnerships in guaranteeing personal loans.

In collaboration with NTT Data, SMBC Consumer Finance has built a platform that supports the digitalization of overall operations regarding loans, and they have begun providing the platform to financial institutions. In the personal loan business, financial institutions and loan guarantee companies are faced with inflated system costs and more complicated administrative operations. By resolving these issues through the realization of digital transformation and providing new value to financial institutions and users, the bank aims to contribute to the expansion of the personal loan market and become the industry standard.

Bank of Sanjusan Use Case

The Bank of Sanjusan will use this platform to streamline the process from application to contract for its “Sanjusan Bank Free Loan” product guaranteed by SMBCCF. The bank plans to expand the platform’s use to other products in the future, aiming for comprehensive digitization of its loan operations.

For the Bank of Sanjusan, new features have been added to the platform to enhance user-friendliness for bank staff. These features will also be made available as standard features. We will continue to enhance the platform’s functionality based on the needs of financial institutions.

Overview of Loan Digital Platform®

This service provides a range of functions required for personal loan applications and contract conclusion for financial institutions, guarantee companies, and customers in a SaaS-based format. It contributes to improving customer convenience, increasing loan application approval rates, and reducing administrative costs. Key features include:

1. Complete Online Application and Contract Process

The platform enables customers to complete the entire loan application and contract process online. It is equipped with eKYC [Note 3] for identity verification, allowing customers to complete the application process using only their smartphones.

2. Automated Transmission and Retry Between Financial Institutions and Multiple Guarantee Companies

Automated guarantee review requests and automated retry functions fully automate the process from loan acceptance to credit review requests to multiple guarantee companies, eliminating the need to send and manually input data from received faxes.

Furthermore, by standardizing the guarantee company connection interface (IF), it enables the exchange of guarantee review data without the need for new line installation or changes to IF layouts for guarantee companies already connected to the platform. This contributes to faster release of new products by financial institutions.

3. Improved UI/UX to Prevent Application Abandonment and Enhance Service Quality

Incorporating SMBCCF’s EFO [Note 4] results, measures have been implemented to minimize application abandonment before completion. This helps prevent application drop-offs during form input, leading to increased customer acquisition and lower CPA (Cost Per Acquisition).

4. Customer Contact Support

The “My Page” created on the web for each customer’s personal loan application allows for administrative communication with customers, such as notification of incomplete entries or requests for resubmission of documents. In the past, communication with customers was primarily conducted through phone calls, mail, physical visits, and fax. Utilizing the web eliminates physical and time constraints, leading to increased operational efficiency and improved customer convenience.

5. Increased Approval Rates through Data Analysis and Marketing Service Provision

SMBCCF and NTT DATA offer “data analysis and marketing improvement” services. By providing quantitative data on points of application abandonment and lists of customers eligible for loan amount increases, we contribute to ongoing UI/UX improvements and higher approval rates.

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