25% of Applications are Accepted in a Straight Through Process
Customer:
Beequip MKB Equipment Lease
Challenge:
Manual estimation of risk is very time consuming.
Solution:
FRISS Underwriting Analytics (for commercial customers)
Results:
STP Acceptance in 25% of the cases
More efficient and structured KYC process
Compliance guaranteed automatically
The use of Web-IQ accelerates online investigation
Customer
Beequip finances heavy equipment (used and new) for the construction, infra, agricultural i and logistics sectors. SMEs are the engine of the Dutch economy. Beequip allows Dutch companies to grow through leasing solutions for various equipment classes, such as excavators, cranes and barges. Beequip has provided €1 billion in leases in the last 5 years.
Challenge
Beequip has seen a surge of equipment lease applications. While this is great for business, it’s not necessarily great for their customers.
Each lease application requires manual checks – a timely process resulting in delays, and ultimately a scale-up challenge for the company.
On average, it took Beequip 35 minutes to assess each lease application. This was too long, and it was quickly recognized that this formed a bottleneck for further growth. The speed of client acceptance needed to be increased reliably.
Solution
Various solutions for a more efficient acceptance process were explored, including a homegrown solution to process all requests from start to finish. Finding the talent to double the size of the development turned out to be untenable in the short term. Beequip needed a strong partner, and FRISS proved to be the only one in the market suitable for Beequip’s requirements.
Devising an automated process to vet customers was the next step. Beequip had a number of specific requirements, such as integrating its own model with client acceptance checks. This model embraced both the legally required checks as well as its own risk assessment indicators. These requirements had to be included in the FRISS solution.
A scorecard could then be constructed on the basis of mutual knowledge and experience. The flexibility of the FRISS solution made this possible.
FRISS assisted Beequip in assessing the risk involved in lease applications in a fast and structured manner, by automatically identifying the client profile. At the same time, a check of the ultimate beneficial owners and a screening of sanction and PEP lists ensures applications meet the requirements of the Money Laundering and Terrorist Financing Prevention Act. The client portfolio is constantly monitored for compliance. FRISS is now integrated seamlessly with Beequip’s back office system.
Results
Thanks to the automatic compliance check, it is immediately clear whether Beequip can accept a new client. This reduces the time spent on investigations into applications that it cannot accept. Within 6 months of implementing FRISS, 25% of applications are accepted without the intervention of an employee.
Because feedback is provided when things go wrong, employees are given actionable insights to kick start their research. In addition, linked external data sources can be immediately included in application screenings.