Business Case
Executive Summary
Objective: The objective of the project is to design, build, and implement a fully functional post-origination commercial lending solution.
Expected Outcome: The expected outcome of the project is to develop and implement a system to book commercial loans, both bilateral and syndicated, and to account for such loans throughout their lifetime from setting up a facility through repayments of drawdowns and on to loan facility maturity.
Problem Statement
Current Challenges:
- Lack of an integrated system to manage commercial loans.
- Manual processes leading to inefficiencies and errors.
- Inadequate tracking of loan lifecycles and facilities.
Need for Commercial Lending Solution:
- Streamline the process of booking and managing commercial loans.
- Improve accuracy and efficiency in loan management.
- Enhance tracking and reporting capabilities.
Solution Overview
What is Commercial Loans Project: The Commercial Loans project involves creating a comprehensive system to manage commercial loans from post-origination to maturity. This includes setting up loan facilities, processing drawdowns, managing repayments, and tracking the loan's lifecycle.
Types of Commercial Lending Solutions:
- Bilateral Loans: Loans involving two parties – the borrower and a single lender.
- Syndicated Loans: Loans involving multiple lenders that provide funds to a single borrower.
Benefits of Commercial Lending Solution
- Improved Efficiency: Automates the booking and management of commercial loans, reducing manual intervention and errors.
- Enhanced Accuracy: Provides accurate tracking and reporting of loan facilities and their statuses.
- Better Lifecycle Management: Offers comprehensive management of loans from origination to maturity.
- Scalability: Can handle both bilateral and syndicated loans efficiently.
Implementation Plan
Phase 1:
- Requirement Gathering and Analysis
- System Design and Architecture
- Initial Development and Prototyping
Phase 2:
- Full-scale Development
- System Integration and Testing
- User Training and Documentation
Phase 3:
- User Acceptance Testing (UAT)
- Final Deployment
- Post-Deployment Support and Maintenance
Cost Analysis
Initial Costs:
- System Development and Licensing
- Hardware and Infrastructure Setup
- Training and Documentation
Operational Costs:
- Ongoing Maintenance and Support
- System Upgrades and Enhancements
- User Training Updates
ROI Estimation:
- Expected ROI within 2-3 years due to improved efficiency and reduced operational costs.
Risk Assessment
Technical Risks:
- Potential integration challenges with existing systems.
- Data migration issues.
Mitigation Strategies:
- Comprehensive testing and pilot runs.
- Detailed data migration plans and validation checks.
Alternatives Considered
- Manual Processes: Continuing with existing manual processes, which are inefficient and error-prone.
- Partial Automation: Implementing partial automation, which may still require significant manual intervention.
Conclusion and Recommendations
Recommendation: Proceed with the development and implementation of the fully functional post-origination commercial lending solution to enhance efficiency, accuracy, and lifecycle management of commercial loans.
Next Steps:
- Finalize project requirements and scope.
- Begin Phase 1 with requirement gathering and system design.
- Establish a project timeline and assign responsibilities.
Appendices
- Appendix A: Detailed Project Timeline
- Appendix B: Stakeholder Analysis
- Appendix C: Technical Specifications
- Appendix D: Risk Management Plan
Prepared by: Steve
Email: s.j.pollard@outlook.com
Date: 10/16/2024