Using Automation to Reduce

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5 Νοε 2013 (πριν από 3 χρόνια και 9 μήνες)

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Using Automation to Reduce
Loan Origination Costs


Allan Redstone, CEO

Automation vs. Technology


Automation reduces/eliminates the need for human
“touches” during a process


Microsoft Word
tm

is technology, not automation


Scanning documents so loan processors look at
images instead of paper is technology, not
automation


Automatically ordering a 3
rd

party service when a
process milestone occurs is automation


Human “touches” are the only cost in the loan
origination process that really matter


Automation Concepts


Decisioning


AUS


Pricing


Workflow / BPM / BPE


Touchless


Paperless


Measurement and feedback


ROI


large upfront investment with large
potential returns


Diminishing returns in Automation investment



Workflow is an electronic system used to manage and monitor
business processes



Comprised of three fundamental entities:


Transactions


Tasks


Resources



Manages the completion of
transactions

(e.g. the processing and
closing of loan applications) by assigning
tasks

to the optimal set
of
resources

in the optimal sequence



The path of a
transaction
through a business process can be
predefined and tracked


What is Workflow?


Automate
. Incorporates Workflow and other decisioning
components (e.g. AUS, risk
-
based pricing) to automate processes


Minimize need for human “touches”


Reduce costs



Measure
. Provides tools for manual and automated processes to be
measured


Establish goals


Pinpoint process bottlenecks



Change
. Allows business owners to modify business processes
easily


New products


Changes in volume


New business / management structures


“Continuous Process Improvement”




What is Business Process Engineering (BPE)?

Key Success Factors in Implementing
Automation


Rock
-
solid technology base


Performance and Scalability


Allows for “total automation”


Reliance on 3
rd

parties



Make it easy for all stakeholders to embrace automation


Product works out of the box


Automation can be added incrementally


Avoid “big bang” approach with associated risks



Reduce the cost of business process changes


Workflow / BPE tools for SMEs, not programmers

ROI Equation for Automation


Costs:


Technology Acquisition


Implementation


Project Risk


On
-
going internal and external support


Total Cost of Ownership (TCO)



Benefit


50% reduction in loan origination costs


Scalability of enterprise


Agility


changing competitive environment


Automation in Mortgage Underwriting


DU, LP, and other investor systems


External “black boxes” that only automate a fraction of the
process



Integrate Pricing and AUS


True risk adjusted pricing


Critical for non
-
prime lending



Use Automation tools to automate the process of clearing
conditions/stipulations generated by AUS


Third party services


Bar coding


OCR

GHR Workflow / BPE Product Vision


Provides the tools to define, manage, and monitor
business processes



The “backbone” upon which all GHR products are built



GHR business objects are to be “workflow enabled”



Available “off
-
the
-
shelf” with predefined workflows



Customers use intuitive visual tools to configure all
GHR products to meet their specific business
requirements


GHR Workflow Automation


High Level

Key Features:


Automates repetitive tasks


Supports tasks that require
manual decision
-
making or
data entry


Sophisticated exception
processing


Versioning


Parallel task execution


Real time reporting / BPM


Benefits:


Substantially reduces
Origination costs via true
process automation


Accelerates processing of
most standard loans


Reduces manual errors


Business users can measure
and manage the business


GHR Workflow Components


GHR Workflow Designer visual design tool



Rules Engine (VB script for Workshop/Studio)



Data Access layer (TData for Studio)



Queue Manager



GHR Workflow Runtime



GHR Workflow Reporting



Business Process Management tools

GHR Workflow Designer


“Visio”
-
like drag
-
and
-
drop tool for defining workflows


All workflow and task attributes can be defined by the user


Workflows consist of “tasks”,“connectors,” and “rules”

Task tabs are
utilized to organize
tasks by category.

Tasks appear as
user
-
friendly icons.

Connectors control
the flow from task
to task.

Some connectors
use rules to
determine process
flow.

GHR Workflow Designer


Rules (i.e. Studio scripts) for process flow control are in the connectors


When a particular task is complete, one or more connectors (with their
associated rules) determines which task(s) are executed next

Double clicking the rule
-
tag on the
connector shows the rule detail.

Workflow Runtime



Configured “on
-
the
-
fly” by the Workflow schema



Version management for currently executing workflows



Manages the task
-
to
-
task progression of the workflow



Maintains (in persistent store) a snapshot of the current
workflow state



Creates complete logs for Business Process
Management functions

Task Attributes


The “task” itself


A script


An audit


Screen navigation


Queue assignment



Start rule


Predecessor task
requirements


Timeout


Exception workflow


Can be used to handle
events



Exception handling


Workflow controlled
timeout and associated
exception workflow


Task generated
exception and
associated workflow



Measurement


Expected duration

Tasks and Queues in Studio


Queues are the “resource” to which tasks are assigned; Users
are in turn assigned to one or more queues



Each task is assigned to a specific queue; this is simply an
attribute set in the Workflow Designer



Each queue is either a User Queue or a System Queue.
System Queues are executed without user intervention by the
Workflow runtime.

Assigning a Task to a Queue

Events


Asynchronous events can trigger execution of workflows



Task start rules can “wait” for an event by evaluating a script



All events must write to the database



GHR Workflow Runtime includes a daemon/service that
evaluates start rules at predefined intervals defined at the task
level


Business Process Management Tools


All necessary data is persisted in the database


Task duration


Error and exception handling


Workflow path taken


Rule analysis results


Available for GHR’s OLAP tool



On
-
the
-
fly queue prioritization



Comprehensive business analytics


Analysis of bottlenecks and process inefficiencies, both human
and automated


Planned vs. Actual duration of tasks


Monitoring of external 3
rd

party performance

Real
-
Time Reporting


Real
-
time reporting allows an authorized user to see exactly where
any loan application is within a workflow

Entering a Transaction ID
and Update Interval allows
real time visual tracking of
a specific loan application.

A green
checkmark
indicates that a
step in the
workflow has
been completed.

The current
location of the
requested
transaction is
indicated by
an hourglass.

Workflow Engine Performance Matrix


Efficiency


Tested on a
multi
-
million
record
database



Scalability


Scale Up


Scale Out


0
50
100
150
200
250
1
10
50
100
Number of users
Task to Tast Transition Ave Duration Per # of Users
Ave Duration (ms)
What Can Workflow Control in Studio?

Automated tasks


Data validation


Auto
-
generation of conditions/stipulations


Third
-
party service ordering (e.g. credit, appraisal, flood, title,
LP/DU)


Error and exception handling


In general, any Studio script or Audit can be executed
by Workflow as a task



User tasks


User Input pages


Field level process flow is controlled by the web page and/or
the data validation object

GHR LOS Studio and Workflow


Queue Manager


The workflow engine determines
when

a task must be performed and
who

is going to do it


Resource is “selected” by assigning the task to a queue


Studio can be configured to have an arbitrary number of queues


Users can be assigned to one or more queues


“Begin Next Task” button assigns the next task from all queues to which
the user is assigned


Managers can change relative queue priority “on
-
the
-
fly” to manager real
time process bottlenecks



Screen Navigation


Workflow enabled screen navigation answers the question, “Where do I go
next?”



Service Ordering


Third
-
party services can be ordered and tracked (thru LoanPortal) based
on rules that you determine

User “queue” in Studio

Assigning Users to Queues