Transforming Banking Operations: How LMTEQ Automated Lending and Claims Processing with ServiceNow
65%
Process Time Reduced
45%
improvement in CSAT
20 Hrs
saved in automated report generation
An Overview
Our client, a leading private sector bank in India, faced mounting pressure to streamline their lending and claims operations, and it turned to LMTEQ’s ServiceNow expertise. This case study demonstrates how strategic automation transformed complex manual processes into streamlined digital workflows, delivering significant operational improvements and enhanced customer satisfaction.
The implementation showcased LMTEQ’s comprehensive ServiceNow capabilities, leveraging our in-house team of CAD, CSA, and CIS-certified specialists to deliver a solution that revolutionized the bank’s service delivery model.
Client Background
Our client is a prominent private sector bank with over 2 million customers across India, operating through 100+ branches and maintaining a strong digital banking presence. As one of the fastest-growing banks in the country, they manage a diverse portfolio including retail lending, corporate banking, and insurance services.
The bank processes approximately 10,000 loan applications monthly and handles over 4,000 insurance and loan-related claims. With ambitious growth targets and increasing regulatory requirements, they recognized the need for digital transformation to maintain their competitive edge while ensuring operational excellence.
Despite their market success, the bank’s traditional paper-based processes and disparate systems were creating bottlenecks that hindered their ability to scale efficiently and deliver superior customer experiences.
The Challenges
Fragmented Lending Operations
The bank’s lending process involved multiple departments with disconnected systems, resulting in lengthy approval cycles. Personal loan applications averaged 12-15 days for processing, while home loans took 25-30 days. Manual document verification, credit assessments, and approval workflows created significant delays and increased the risk of errors.
Inefficient Claims Management
Insurance and loan-related claims processing was equally challenging. The bank handled various claim types, including loan insurance, credit protection, and mortgage-related claims, through manual processes. Claims resolution averaged 18-20 days, leading to customer dissatisfaction and increased operational costs.
Compliance and Audit Challenges
Meeting RBI guidelines and internal audit requirements proved difficult with manual processes. The bank struggled with maintaining comprehensive audit trails, ensuring consistent documentation, and managing regulatory reporting requirements across different product lines.
Customer Experience Issues
Customers faced lengthy processing times, lack of transparency in application status, and multiple touchpoints for simple requests. The bank’s Net Promoter Score (NPS) for lending and claims services was below industry benchmarks, indicating significant room for improvement.
Resource Utilization Concerns
Skilled staff spent 60-70% of their time on administrative tasks rather than customer-facing activities. This inefficiency increased operational costs and limited the bank’s ability to focus on strategic initiatives and relationship building.
Solution
LMTEQ’s ServiceNow implementation team, comprising CAD, CSA, and CIS-certified specialists, designed a comprehensive automation solution addressing both lending and claims operations.
ServiceNow Platform Implementation
We deployed ServiceNow Customer Service Management (CSM) as the core platform, integrated with IT Service Management (ITSM) modules for seamless operations. The solution included :
Unified Service Portal :- A single digital interface for customers to submit loan applications, track progress, and manage claims. The portal integrated with the bank’s existing authentication systems and provided real-time status updates.
Automated Workflow Engine :- Custom workflows for different loan types (personal, home, auto, business) with built-in approval hierarchies, risk-based routing, and automated decision points. Each workflow incorporated RBI compliance checkpoints and mandatory documentation requirements.
Document Management Integration :- ServiceNow’s document management capabilities were configured to handle various document types, with automated OCR processing for data extraction and validation against multiple databases.
Technical Architecture
The implementation leveraged ServiceNow’s Integration Hub to connect with core banking systems, credit bureaus, and external verification services. RESTful APIs enabled real-time data synchronization, while MID servers ensured secure communication between ServiceNow and on-premises systems.
Claims Processing Module :- Specialized workflows for insurance claims, loan restructuring requests, and dispute resolution. The module included automated claim categorization, priority assignment, and escalation mechanisms based on claim value and complexity.
Business Rules and Automation : – Over 150 business rules were configured to automate routine decisions, data validations, and system notifications. These rules incorporated the bank’s credit policies, risk parameters, and regulatory requirements.
Reporting and Analytics :- Custom dashboards provided real-time visibility into processing metrics, team performance, and compliance status. Advanced analytics capabilities enabled predictive insights for better resource planning and customer service optimization.
Results
Processing Time Reduction :- Lending processing time decreased by 65%, with personal loans now processed in 4-5 days and home loans in 8-10 days. Claims processing time improved by 70%, averaging 5-6 days for standard claims.
Cost Optimization :- The bank achieved a 40% reduction in operational costs for lending and claims operations through automation and improved resource utilization. Annual savings exceeded ₹1 crores across both departments.
Staff Productivity :- Employee productivity increased by 55% as staff could focus on complex cases and customer relationships rather than routine administrative tasks.
Digital Adoption :- 78% of customers now use the digital portal for loan applications and claims submissions. Customer satisfaction scores improved by 45%, with NPS reaching industry-leading levels.
Transparency :- Real-time status updates and proactive communication reduced customer inquiries by 60%, improving overall service quality.
Audit Trail Completeness :- 100% audit trail coverage with automated documentation ensures regulatory compliance and reduces examination preparation time by 80%.
Risk Mitigation :- Enhanced data validation and automated checks reduced processing errors by 90%, significantly minimizing operational and compliance risks.
Regulatory Reporting :- Automated report generation saves 20 hours weekly per department while improving accuracy and consistency. The implementation positioned the bank as a digital leader in the BFSI sector, enabling sustainable growth while maintaining operational excellence and regulatory compliance.
Ready to Transform Your Banking Operations?
LMTEQ’s proven ServiceNow expertise can help your organization achieve similar transformation results. Our certified specialists understand the unique challenges of BFSI operations and deliver solutions that drive measurable business outcomes.
Contact us today to schedule a consultation and discover how ServiceNow automation can revolutionize your lending and claims operations. Let our CAD, CSA, and CIS-certified team design a customized solution that accelerates your digital transformation journey while ensuring regulatory compliance and operational excellence.
Get started with your ServiceNow transformation – reach out to LMTEQ’s banking automation specialists.
As an AI-powered transformation partner, we help businesses unlock potential with ServiceNow to achieve faster, high-quality outcomes.