Caja Rural de Ahorro y Crédito Chavín S.A.A. Supports Microfinance Business Growth with Platform that Optimizes Core Business Processes
 
 

Caja Rural de Ahorro y Crédito Chavín S.A.A. Supports Microfinance Business Growth with Platform that Optimizes Core Business Processes

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Caja Rural de Ahorro y Crédito Chavín S.A.A. (CrediChavín) is a private financial institution specializing in microfinance in Peru. It is developing microfinance as a sustainable and profitable business that also contributes to economic growth and social inclusion across the country. The company has a 14-agency network, through which it offers savings and credit plans.

CrediChavín wanted to respond more quickly to customers' credit and savings needs and improve its overall market competitiveness. It also wanted more efficiency in complying with Peru's banking laws. To accomplish these goals, it began an initiative to deploy a modern IT infrastructure.

CrediChavín chose Oracle solutions, using Oracle WebLogic Suite as an application server and Oracle Business Process Management Suite to create and manage processes, along with the Oracle Linux operating system. On this platform, the company can create and generate business processes, such as credit approvals and financial statement issuance, helping new businesses that are oriented to local vertical markets—for example the cotton market—and also processes that improve customer service.

 
 

 
 

Challenges

A word from Caja Rural de Ahorro y Crédito Chavín S.A.A. (CrediChavín)

  • “With Oracle Business Process Management Suite, we can continuously monitor all credit operations and better manage business risk. Oracle's solutions have enabled us to create the reliable and secure risk management environment that is essential for a financial institution.” – Eduardo Poletti, Chief Information Officer, Caja Rural de Ahorro y Crédito Chavín S.A.A. (CrediChavín)

  • Develop an up-to-date IT Infrastructure that meets the company's current needs, such as the flexibility to launch new financial products rapidly to meet emerging market needs, and that can scale to support future business growth, including expansion of its microfinance offerings
  • Automate and optimize the company's business processes, such as online transactions, portfolio tracking, and daily credit provisions, to create real business value and improve customer service
  • Reduce the time needed for credit approvals and achieve maximum transparency in all operations to comply with Peruvian banking regulations

Solutions

Oracle Product and Services

  • Worked with Oracle Partner Global Business Solutions Peru S.A.C. to design a new IT infrastructure using Oracle Business Process Management Suite and Oracle WebLogic Suite
  • Improved ability to create, automate, and manage business processes, such as credit approvals and financial statement issuance—for better operational efficiency, new business opportunities, and more responsive customer service
  • Gained the ability to quickly identify inconsistencies in the company's credit processes, enabling it to make necessary adjustments, work with more accurate figures, and develop more realistic indicators, based on information system data
  • Enabled more consistent and timely online financial reports for internal use―for example, to help management evaluate daily financial statements―and to provide reports for external use as required by state agencies that supervise the bank’s operation
  • Reduced credit approvals from seven days to one day and gained the ability to track approval status online—getting critical financing to customers more quickly
  • Commenced online creation of financial reports and debtor credit reports required by the Superintendency of Banking, Insurance, and Private Pension Funds, a process that previously required 15 days to complete
  • Used Oracle WebLogic Suite as an application server and Oracle Linux as the operating system, achieving high system availability and scalability
  • Gained the ability to monitor and track the company's business portfolio—including deposits, recoveries, disbursements, and delinquencies—using robust reporting capabilities for segmentation by business manager, date, agency, currency, and commodity
  • Tracked credit and loan processes, and achieved full control of each client account from initiation to closure
  • Implemented automatic alerts that flag threshold limits for client debt, cash balances, and more, reducing the bank’s risk level

Implementation Process

“The implementation was a multifunctional deployment, because we were coming from a system that had general information, but not much detail. It required the participation of many stakeholders, including accounting, operational, and IT professionals. We planned the implementation internally and worked with Global Business Solutions Peru during the rollout phase. It was a strategic business shift,” said Eduardo Poletti, chief information officer, CrediChavín.

In addition to highlighting the professionalism of Global Business Solutions Peru, Poletti emphasized that the implementation went live on schedule.

Partner

CrediChavín and Oracle Partner Global Business Solutions Peru S.A.C. started developing the IT infrastructure in February 2009, after designing the system from the ground up using Oracle WebLogic Suite as an application server, Oracle Business Process Management Suite to create and manage processes, and Oracle Linux as the operating system.

The Oracle system went live in 2010, after extensive testing, user training, and internal certification, as well as after migrating data from the previous system.
 

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