MUFG Bank: Restructuring of the Mortgage Business

“With Pega, we can complete the pre-screening process in as little as 2 hours, which used to take more than a day to complete, and that's a huge improvement in customer experiences. Traditional systems could not complete the work in such a short period of time. It also contributes to improved customer service.”

The Business Issue

In the mortgage business

• Increase in profit margins
• Improvement in customer experiences
• Support for multiple channels
• In-house system development

Since mortgage business is one of the main revenue streams, MUFG Bank has been reforming the structure of the business. As part of these efforts, they are currently driving the business processes automation.

The objective of the project is to secure profit and improve the customer experiences. Rather than simply replacing the legacy system, they want to reform inefficient manual and paper-based business processes, and the common understanding among all stakeholders involved was that this project directly drives results.

The Solution

Mitsubishi UFJ Financial Group has selected Pega as a bank-wide platform for areas such as loan case management and anti-money laundering systems.

The new mortgage loan process, which is the subject of this project, consists of three channels of application: over-the-counter, regional loan centers (brokered by real estate companies), and the web. There are three phases in the contracting process: pre-screening, formal review, and contract/execution.

The bank is implementing the automated loan process for each channel. Pega is an excellent solution because it allowed them to manage workflows through a unified UI and to easily separate tasks. From an implementation standpoint, Pega had a significant advantage over development from scratch, allowing them to manage long and complex business processes such as mortgage loans in an integrated manner.

The Results

MUFG Bank has achieved a 75% reduction in the amount of workload required to complete new loan applications through the web and have reduced the number of paper (printed materials) by 20,000 per month. In addition, the pre-screening process, which used to take a day or more to complete, can be completed in as little as two hours, which contributes greatly to the customer experiences.

With Pega's "component commonality", subsequent development is now 1.5 times more productive. Since Pega is a Low-Code solution with high development efficiency, IT professional training is also underway to gradually shift development work to in-house production.

While preparing a system for in-depth discussions between the business and IT departments, a team has been created with a focus on making each company involved a business partner on an equal footing. As a result, a "One Team" culture was created on the project.