The Challenge

A consumer finance company based in Central America, specializing in short-term lending relied on a manual process to disburse approved loans. After underwriter approval, the accounts team logged into each online banking platform, uploaded payment files, and awaited internal approval — a routine that introduced delays of 30 minutes or more and required multiple human touchpoints.

Key issues:

  • Slower funding turnaround for customers

  • Operational inefficiency and staff dependency

  • Risk of errors from manual steps

  • Complexity across multiple banking platforms

 

My Approach

I conducted a full analysis of their loan funding process and reviewed the technical capabilities of their banking partners. I discovered that one bank offered a real-time API capable of automating fund transfers.

I then designed a future-state workflow that connected the Loan Management System (LMS) directly to the bank’s API. Now, when a loan is approved, the system automatically initiates a real-time payout — no manual intervention needed.

Additionally, because the bank could disburse to all financial institutions in the country, we consolidated funding operations under one provider, reducing friction and cost.

Results & Impact

⏱️ Disbursement time dropped from ~30 minutes to under 2 minutes — a 93% improvement.

🚫 Manual errors were eliminated by automating file uploads and approvals.

🧑‍💼 The new system saved the team over 20 hours per week in manual processing.

😀 Real-time funding improved the customer experience and boosted repeat loan applications by 15%.

💰 Consolidating with one bank cut transaction fees by 10% and simplified operations.