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Navigating Vendor Lock in Philippines
02/02/2024
Digitalization in Latin America
In Latin America, the trajectory of small and medium-sized businesses (SMEs) is undergoing a major transformation—one that relies on the force of digitalization. As global markets go towards a digitally-centered era, the significance of adopting technological advancements resonates deeply, particularly for SMEs aiming to thrive and compete in an ever-evolving marketplace.
In this dynamic environment, the integration of digital tools, technologies, and processes isn't merely an option but a strategic imperative. Because of this, our client, Banco Promerica, reached out to Adastra Business Consulting (ABC) for our extensive experience across the region. We offer invaluable insights into the Costa Rican market, which enabled a deep understanding of the dynamics unique to Banco Promerica's operations, fostering a more informed and targeted approach to addressing their needs.
Our approach to digitalization
Working closely with the bank, we were able to drive a significant positive impact on the lending experience for small and medium-sized enterprises. From the initial process and technology review to the design of future-state processes and the creation of innovative SME scoring models, this project has set the groundwork for digital transformation of servicing the SME segment.
LOAN ORIGINATION PROCESS REVIEW
- A comprehensive review encompassing every stage of the loan origination process, spanning from lead generation to disbursement, across all available channels
- Meticulous examination of the current AS-IS technology infrastructure utilized within the loan origination process for both corporate and SME segments
- Creating a TO-BE process to expedite the approval timeline significantly
- Designing the corresponding TO-BE technology framework
- The objective is to innovate and streamline operations, specifically targeting a substantial reduction in the time required to secure approvals
- Development of a comprehensive roadmap comprising 25 strategic initiatives strategically categorized into quick wins, mid-term, and long-term solutions
- Initiatives span across six different departments, each assigned with specific responsibilities
APPLICATION SCORING MODELS
- Evaluation of existing data and potential additional data sources to enrich our dataset
- Assessment of data quality, aiming to understand its reliability and suitability for our models
- Recommendations aimed at enhancing both the availability and quality of data, specifically tailored to recalibrate the models
- Creating of statistical base models, specifically leveraging logistic regression, aimed at assessing company solvency
- Crafting several distinct statistical models tailored for different type of clients and SME sizes
- Post-modeling, meticulous definition and establishment of cut-offs were undertaken
- Roadmap structured across two distinct stages: short-term and long-term
- Short-term stage focuses on immediate actions and solutions
- Long-term stage encompasses the integration of models into the new decision engine
Our results
We identified gaps in loan origination process and formulated recommendations, designed AS-IS and TO-BE processes, and curated a roadmap with 25 initiatives. These initiatives target:
- Increasing digitalization and automation for faster approvals,
- Boosting sales volume,
- Improving end-to-end process monitoring.
These measures aim for a holistic transformation, prioritizing efficiency, growth, and comprehensive operational oversight.
We also tailored several scorecards specifically for SMEs with GINI exceeding 50%: catered to existing and new clients. Detailed documentation encompassed descriptions and the methodology behind scorecard development. Our roadmap seamlessly integrated short and long-term solutions.
For more information on our services, visit our web:
Contacts for more information
Michal Bodnar
Associate Partner
