Mergers & Acquisitions
Excellence in merger and acquisition implementation strategies is decidedly more critical today than in the recent past. Not only are FIs under capital liquidity pressures, but cost reduction pressures as well which may result in reduced staff required to meet all these needs. Technology vendor partners can and should be an integral part of the M&A strategy to meet corporate goals at many levels.
—Bobbie Britting, research director, consumer lending for TowerGroup
All of These Things Are Not Like the Others
Spaghetti, smokestacks, or silos: by whatever name you call it, disparate systems are creating a technological and business nightmare for managers of merged financial institutions (FIs).
Acquiring a new company presents a great opportunity for market strength, but a huge challenge to maintain solid customer service and consistent, timely credit risk policy across lines of business (LOBs) and a multitude of channels. Costs are escalating to maintain all of these systems and pay for retrieving data more than once.
How Much Time Do You Have?
With complex mergers, technology solutions that can be integrated as seamlessly and quickly as possible are essential. Having worked with top-tier FIs for more than 20 years, Zoot has successfully completed massive internal conversions of multiple origination platforms.
One top-ten FI experienced rapid growth through acquisitions, resulting in over a dozen separate loan origination systems and an unacceptable cost to book loans. To continue its growth, the company needed to simplify channel management, greatly increase its cross-selling opportunities, and reduce costs. Zoot’s configurable solution made it possible for the company to establish its credit policy at an enterprise level without compromising the ability of individual LOBs to control their decision criteria.
The company broke even on the project investment in less than 18 months. One LOB saved over $1 million and reduced operations staff by more than a dozen while also reducing time to close loans. Another division increased volume 600 percent without additional staff and reduced time to decision applications from two weeks to less than one minute.
Do More with Less
Excellence in merger and acquisition strategies requires meeting multiple challenges such as remaining nimble from a product feature and credit policy perspective to providing consistent credit policy. Zoot can help your FI increase efficiencies and improve the customer experience through automation. Not only will our tools and services relieve your IT constraints, apply consistent credit policy across all LOBs, and decrease decisioning costs, but also they will enable your strategy moving forward. Zoot has successfully blended back-end systems without interfering with customer service and can seamlessly integrate with all of your platforms.