Why has the average time to process commercial real estate loan applications through OakNorth's ON Credit Intelligence Suite doubled in the last month?

Introduction

The doubling of average processing time for commercial real estate loan applications through OakNorth's ON Credit Intelligence Suite is a critical issue that demands immediate attention. This significant increase in processing time not only affects customer satisfaction but also impacts the overall efficiency and competitiveness of our lending operations. To address this problem, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term fixes and long-term strategic implications.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might have been a recent system update. Has there been any significant changes to the ON Credit Intelligence Suite in the past month?

Why it matters: System changes often lead to unexpected performance issues. Expected answer: Yes, there was a major update to the credit scoring algorithm. Impact on approach: If confirmed, we'd focus on the new algorithm's performance and integration.

• Considering user segments, I'm curious about the distribution of this increase. Is the doubling of processing time consistent across all types of commercial real estate loans, or is it more pronounced in certain categories?

Why it matters: Helps identify if the issue is systemic or specific to certain loan types. Expected answer: The increase is more significant for larger, complex loans. Impact on approach: We'd investigate factors specific to complex loan processing.

• Thinking about external factors, has there been any notable change in the volume or complexity of loan applications received in the last month?

Why it matters: External changes could explain the increased processing time. Expected answer: Application volume has remained stable, but complexity has increased slightly. Impact on approach: We'd need to determine if the slight increase in complexity justifies the doubling of processing time.

• Regarding system performance, have there been any reported issues with data integration or third-party services that feed into the ON Credit Intelligence Suite?

Why it matters: Integration issues could significantly slow down processing. Expected answer: There have been some intermittent issues with a credit bureau API. Impact on approach: We'd prioritize investigating and resolving these integration problems.