Writing Assignment Loan Processing at Capital One Case

Loan Processing at Capital One case
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Executive summary
The operations manager at Capital One is concerned about the next quarter; he reviews the performance and notice that the company is not fairing on well. The marketing team is to engage in the direct marketing. Direct marketing is meant to be in the form of a mail drop to increase to the volume of loans funded within six weeks (Immaneni & Terwiesch 2007). Everyone will play significant role in the upcoming marketing strategy to succeed.
Case overview
The company needs associates to execute its new marketing strategy. According to its projections, 14 funded loans would be processed by each associate every month. Therefore the company needs a total of 25 associates. The department does not have the capacity to handle volumes of loan applications as they targets 700 funded loans every month(Immaneni & Terwiesch 2007).
There is the need to either increase the number of staff or heavily invest in information technology to increase the productivity of existing staffs. The fact that increased marketing would lead to increased loan application meant the company was to face serious challenges for lack of adequate underwriters (Immaneni & Terwiesch 2007). Even though a consensus has not been reached but with observation from the executives in charge of consumer loans, the company cannot handle increasing volumes of loan applications (Immaneni & Terwiesch 2007). As the quarter ends, the company has managed only 14 funded loans.
Analysis
It takes 3 hours to go through the details before funding a loan, this includes initial interview, quality inspection and closing (Immaneni & Terwiesch 2007). Capital One have 25 associates working 150 hours every month. Each associate can process 50 applications per month this will be a total of 1250 applications(Immaneni & Terwiesch 2007). If the company will fund all the loans, underwriters will have to work over time to get about 700 applications processed and funded .
In addition, the interview process is an intense process that needs to follow the Federal privacy regulations. In a day, seven associates will not be enough to serve between 200 to 500 customers(Immaneni & Terwiesch 2007). The fact that the associate will take some time to explain to the applicants about the loan , more associates will be required to take customers through the products, including the loan terms(Immaneni & Terwiesch 2007).
The associates will be guided by a scripted questionnaire and also need to enter the information provided by the customer on the computer. Various processes require follow-ups like inquiring for additional information to complete the loan application. (Immaneni & Terwiesch 2007).
Capital One has several opportunities to redesign it the operation of loan process, domestic diversification have made the company progress within a larger geographical area . The company can still expand its operation through other options apart from acquisition .It can operate as a global financial service organization that supports a variety of loan products to a wider geographical area(Immaneni & Terwiesch 2007).
According to the work in progre...