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How Federal Bank Reduced TAT for Bank Guarantee Issuance to Just a Few Minutes.

Federal Bank made the decision to digitize their entire bank guarantee issuance process with Pixl.

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Federal Bank is a leading Indian private sector bank that provides a wide range of financial services to its customers. However, the bank's trade finance division had been facing challenges with turnaround time (TAT) and paper-based issuance of bank guarantees, which were affecting customer satisfaction and retention. To remain competitive in the market, the bank realized the need to reduce TAT, minimize the potential for misuse and fraud, and simplify the verification process for BG status. This case study highlights how the Federal Bank reduced the TAT for bank guarantee issuance to just a few minutes by using the Pixl e-BG solution.

The Challenges Faced by Federal Bank

    Manual Processes: The existing process for issuing bank guarantees is physical, which was time-consuming and prone to errors.

    Multiple Approvals: The process required multiple approvals, which further resulted in an increased TAT.

    Lack of Automation: There was no automation in the process making it difficult to track the status of the issuance.

    Customer Dissatisfaction: The long TAT was created dissatisfied customers, which was affecting customer retention.

e-BG solution in federal

How Pixl's e-BG Solution Resolves the Issue

    Online Application: Customers could now apply for bank guarantees online through the bank's website or mobile app.

    Automated Process: The application was automatically processed through a workflow, eliminating the need for physical intervention.

    Electronic Approval: The system enabled electronic approval and paperless e-stamping, thereby reducing the time required for multiple approvals.

    Real-time Status: The status of the issuance was updated in real-time, allowing customers to track the progress of their application, preview it, and confirm it.

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The Outcomes Speak for Themselves

    Reduced TAT: The TAT for bank guarantee issuance was reduced from several hours to just a few minutes.

    Improved Customer Satisfaction: The quick turnaround time improved customer satisfaction, resulting in higher customer retention.

    Increased Efficiency: The automation of the process increased the efficiency of the trade finance division, reducing errors and saving time.

    Competitive Advantage: The reduced TAT gave the bank a competitive advantage, attracting new customers and retaining existing ones.

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