Shawbrook Bank uses Pegasystems for low-code business process rewrite

Specialist business lending and savings bank Shawbrook Bank is using a low-code platform from Pegasystems to rewrite business process software and automate customer journeys.

Using low code, the bank has completed the business process rewrite of part of its loans business, and is already saving 1,500 hours a month as a result.

Shawbrook Bank, which serves small and medium-sized business customers, consumers and property investors, was the result of the merging of five different finance firms in 2011, and it has since grown rapidly. As a result, the company decided to rewrite its end-to-end processes in its loans and savings businesses.

The end-to-end journey for unsecured loan processing will be completed on the Pegasystems platform, while any technology that’s directly touching Shawbrook’s end customers is Shawbrook’s own bespoke software.

Russ Thornton, chief technology officer at Shawbrook, said the company “was previously scared of writing its own software”, but that the low-code platform from Pegasystems changed this.

“We have completed the rewrite of one part of our unsecured loan business, which has proven the model, and now we are doing the rest of it,” he said. “We should have completed the entire unsecured loan process by the end of the first half of this year. Having proved the model, we have now moved this to the biggest part of the business, our property and buy-to-let underwriting. In this business, we already have a lot of automation on the front end, but not at the back.”

The company will begin this project at the end of this month.

When complete, Thornton expects this will reduce the time between an indicative mortgage offer to final mortgage offer from 34 days to less than 10 days.

“Our strategy is all about combining the best in technology with deep human expertise,” he said. “Pegasystems was easily integrated into our existing technology stack, streamlining and automating the journey. Our team is therefore able to provide our customers and colleagues with a simpler and more efficient experience.” 

Low-code, also known as no-code, development platforms use graphics to allow developers to drag and drop application components, connect them together and create apps. This enables teams to create new web and digital banking capabilities more quickly. 

Pegasystems is best known for its business process management software, which allows users to visually model and optimise their business processes. Low-code platforms can tap into business processes as well, but are oriented more towards the rapid creation of web and mobile applications

Shawbrook worked with digital transformation and services consultancy Labb Consulting to redesign the process for customers and staff. “We spent a bucket load of time analysing processes and work with Pegasystems to automate good processes,” said Thornton. 

Shawbrook also plans to digitise processes in its savings business to speed up the time it takes customers to open an account and make deposits. “This will replace a monolithic third-party application which will mean the final bit of legacy is out the door,” he said.

The bank has no branches or current accounts with 100% digital business.