Pega launches small business lending reference app

Available to Pega Platform™ clients and configurable in just days, it comes with prebuilt templates reflecting new U.S. and U.K. crisis loan guidelines and can be easily customized to orchestrate crisis loan programs for other countries.

Financial institutions around the world are under extreme pressure to execute new government stimulus programs to help their small business customers stay afloat during the crisis. However, many banks are struggling to respond to a frenzied rush of loan applications and handle all the regulatory guidelines that come with it. Meanwhile, time is running out - shell-shocked small businesses are in desperate need of funding to pay employees and bills to survive the economic shutdown.

Available today for download on Pega Marketplace, the Crisis Small Business Lending reference application provides a framework for Pega clients to speed the loan process while reducing the burden on bank staff. By leveraging case management and automation, the solution helps banks dramatically improve processing efficiency - from application all the way through fulfillment. Intelligent web application forms dynamically check for eligibility and loan limits as customers fill them out, saving bank staff and customers valuable time. It also provides customers with complete visibility into the process while generating reports and audit trails so banks can comply with government guarantee and forgiveness plans.

This solution was inspired by feedback from many Pega Platform clients. Most notably, Bavarian Ministry of Economic Affairs developed its own application from scratch using Pega Platform in just five days. More than 100,000 Bavarian companies have already used the Pega-based system to apply for assistance. It replaced a highly manual process that forced applicants to scan paper documents, which slowed the release of funds. (See our other press release today on Bavaria for more details.)

The Crisis Small Business Lending reference application and its underlying Pega Platform architecture provide financial institutions with unique advantages to help them navigate this crisis, including:

• Hassle-free deployment: With little time to spare, banks can quickly deploy the solution on top of their existing Pega Platform with minimal configuration and no coding required. Pega provides easy-to-follow implementation guidelines for embedding intelligent loan application forms within bank websites and online banking applications, integrating with existing customer information and loan fulfillment systems, and adapting to other government programs. The initial version includes pre-defined business rules and intelligent digital forms based on the U.S. Payment Protection Program guidelines, and a version for U.K. Coronavirus Business Interruption Loan Scheme rules will be released soon.

• Global scalability: For large banks operating across different jurisdictions, Pega enables them to deploy Crisis Small Business Lending once and easily scale it to meet the specific needs of each local branch. Pega’s Situational Laker Cake architecture takes the complexity out of operating across different customer types, geographies, and rules by structuring the solution with reusable layers. This lets banks deliver common small business lending solutions across all regions and customize relevant aspects to meet local regulations.

• Advanced automation and case handling: Pega case management capabilities help banks orchestrate and streamline the entire loan process from end to end with complete visibility into progress and the ability to manage service level agreements (SLAs). The reference application automates many time-consuming processes along the way and enables skills-based routing to optimize efficiency.

• Future-proofed agility: The terms and conditions on many emergency loan programs have already changed as fast as they were issued, and even more programs are likely on the way. Using Pega low-code application development capabilities, Pega enables financial institutions to quickly adapt to these changes on the fly - from incremental adjustment to wholesale overhauls.
Pega Platform is a cloud-based, low-code application development platform that gives anyone the power and freedom to create rich user experiences and immersive customer journeys. With an intuitive visual approach to application development, it enables better collaboration between business and IT, faster time to market, and lower costs. As part of the Pega Infinity™ digital transformation software suite, Pega Platform also includes AI, case management, and end-to-end automation capabilities, and seamlessly extends applications to any channel or device.

Used by seven of the top 10 global banks and 14 of the top 15 North American banks, Pega financial services software helps forge lasting customer relationships and accelerate digital transformation. Banks use Pega’s AI, robotics, case management, and business rules to drive efficiency and customer engagement across all channels in consumer and commercial banking throughout the customer lifecycle - from marketing and sales to onboarding and Know Your Customer (KYC) to customer service and collections.

“Financial institutions are experiencing an entirely different crisis within a crisis. Many are struggling to get desperately needed stimulus funds into the hands of small businesses owners that help make local communities thrive,” said Marc Andrews, vice president, financial services and insurance market leader, Pegasystems. “This will make it easier for banks to bring relief to these business owners and help keep vital local companies alive.”