Bank Syariah Mandiri adopts loan origination system

The Jakarta Post, Jakarta

Customers, individual and corporate, will soon be able to experience faster loan approvals as Bank Syariah Mandiri applies the "automatic" loan origination system (LOS).

The financing solution will speed up the process of loan approvals for customers from weeks to just hours or minutes after the implementation of Sigma Approva, which is based on a memorandum of understanding (MOU) between Bank Syariah Mandiri and PT Sigma Cipta Caraka signed on Monday.

Faster customer feasibility evaluation, from when they submit the loan proposal to when the bank approves it, is supported by web-based and core-system-integrated financial scoring analysis and financial policy.

"Without a good scoring analysis system, it would be hard for the solution to be implemented," said Bank Syariah Mandiri Compliance and Risk Management Director Ogi Prastomiyono.

The faster, automatic process can be enjoyed after the implementation of Sigma Approva/LOS, which is scheduled to be completed in four months.

Sigma Approva/LOS has been implemented by Bank Permata, Bank Panin, Bank NISP, GE Finance, Bank Internasional Indonesia, as well as other financial institutions.

Ogi said the bank has invested Rp 841 million (US$88,807) for the system. "This year we are allocating Rp 25 million for the IT development."

Bank Syariah Mandiri targets lending of up to Rp 7 trillion this year. In this year's first quarter, the bank, which has total assets of Rp 7.594 trillion, lent a total of Rp 6.307 trillion.

The bank recorded a loan deposit ratio (LDR) of 103.67 percent and Rp 6.81 trillion in profit in the January to April period this year. (001)