KeyCorp has deployed new technology for its consumer lending process to ensure payments run in real time.
The Cleveland bank said it has installed Oracle Banking Origination, an account onboarding and originations product from Oracle that helps it service loan accounts in real time from initial application through payments and collections. Previously, the $187 billion-asset bank used batch processing, which could cause delays between when a payment was received and processed by the bank, and require manual intervention on the back end. It announced the Oracle Banking Origination deployment Wednesday.
The drive to modernize its loan system traces back to Key's
"During our First Niagara acquisition we saw the lending space is one we wanted to prioritize in our backlog of areas to tackle," Kim Snipes, chief information officer of consumer and digital at KeyBank, said in an interview. "We saw where having a legacy system was not something we could build upon."
Snipes said the conversion happened cleanly.
"Our customers didn't know we were doing it," she said.
The bank declined to give numbers, but said its operations teams can work more efficiently with this change and reduce operating costs. Real-time data processing can help prevent instances of the collections team contacting customers who already completed payments.
"It's very much a game-changer when it comes to them being able to more effectively service our customers," Snipes said.
