Transforming Lending Operations with Data-Driven Solutions

Novellus Finance is an independent lender specialising in property and bridging finance solutions in the UK and Ireland. They provide fast, unregulated bridging finance for short-term lending requirements, backed by their own capital.

Novellus collects several hundred data points for each loan, reflecting their complex data requirements. They offer tailored loans with bespoke fee and interest structures, necessitating quick access to information to respond to customer queries efficiently.

As a technology and data-driven company, Novellus requires information to be presented in a way that facilitates quick decision-making.

Novellus’s commitment to leveraging technology and data analytics sets them apart in the competitive lending market. Their ability to offer bespoke financial solutions is underpinned by their sophisticated data collection and analysis processes. Each loan application is meticulously evaluated using a multitude of data points, ensuring that the terms offered are precisely tailored to the borrower’s needs and circumstances.

Problem Statements

1. Complex Data Sources: Novellus has a range of in-house, complex data sources that need to be integrated and managed effectively. These data sources include customer information, financial records, property valuations, and market trends. The integration of these diverse data sets is crucial for accurate risk assessment and decision-making.
2. Bespoke Lending Platform: They are in the process of building a bespoke lending platform to streamline their operations. This platform aims to automate many of the manual processes currently in place, reducing the time and effort required to process loan applications. The platform will also enhance the customer experience by providing a seamless and efficient application process.
3. Reliance on Power BI: Novellus relies heavily on Power BI for calculations, analytics, and document generation. Power BI is used to create detailed reports and dashboards that provide insights into the performance of the loan portfolio, identify trends, and support strategic decision-making. However, the current data infrastructure needs to be robust enough to support the extensive use of Power BI.
4. Data Integration Challenges: Integrating data from various sources can be challenging due to differences in data formats, structures, and quality. Ensuring that data is consistent and accurate across all sources is essential for reliable analysis and reporting.
5. Scalability Issues: As Novellus grows, the volume of data they handle will increase significantly. The existing data infrastructure must be scalable to accommodate this growth without compromising performance or reliability.
6. Data Security and Compliance: Handling sensitive financial data requires stringent security measures to protect against data breaches and ensure compliance with regulatory requirements. Novellus needs a data infrastructure that provides robust security features and supports compliance with industry standards.

Objectives

1. Future-Proof Platform: Develop a platform that is scalable and can grow with the business. As Novellus expands its operations, the platform must be able to handle increasing volumes of data and more complex analytical requirements. Scalability is essential to ensure that the platform remains efficient and effective as the business evolves.
2. Enhanced Data Processes: Strengthen existing data processes using state-of-the-art technology. This includes implementing advanced data integration and management tools, improving data quality and consistency, and ensuring that data is readily accessible to all relevant stakeholders. Enhanced data processes will enable Novellus to make more informed decisions and respond more quickly to market changes.
3. Faster Data Availability: Increase the speed of calculations to make data available much faster for decision-making. Rapid access to accurate data is critical for Novellus to maintain its competitive edge. By reducing the time required to process and analyse data, Novellus can respond more quickly to customer inquiries, make faster lending decisions, and improve overall operational efficiency.
4. Improved Data Integration: Implement solutions that facilitate seamless integration of data from various sources. This will ensure that data is consistent and accurate, enabling reliable analysis and reporting.
5. Scalable Infrastructure: Build a data infrastructure that can scale with the business. This includes selecting technologies and architectures that support scalability and performance, ensuring that the platform can handle increasing volumes of data without compromising reliability.
6. Robust Security and Compliance: Ensure that the data infrastructure provides robust security features and supports compliance with regulatory requirements. This includes implementing encryption, access controls, and monitoring to protect sensitive financial data.

Outcome

1. Snowflake Data Warehouse: Implemented a Snowflake data warehouse to handle large volumes of data efficiently. Snowflake’s cloud-based architecture provides the scalability and flexibility needed to support Novellus’s growing data requirements. The data warehouse integrates seamlessly with other data sources and tools, enabling comprehensive data analysis and reporting.
2. Azure Data Lake: Built on top of an Azure data lake, providing a scalable and flexible data storage solution. The Azure data lake serves as a central repository for all of Novellus’s data, allowing for efficient data ingestion, storage, and retrieval. The data lake’s scalability ensures that it can accommodate the increasing volumes of data generated by the bespoke lending platform.
3. Data Ingestion Ready: The platform is ready for the ingestion of data from the bespoke lending platform. This ensures that data from new loan applications can be quickly and accurately integrated into the data warehouse, supporting real-time analysis and decision-making. The streamlined data ingestion process reduces the time and effort required to process new data, enhancing overall efficiency.
4. Future-Proof and Fast: The new system is designed to be future-proof and significantly faster, enhancing the overall efficiency of Novellus’s operations. The combination of Snowflake and Azure provides a robust and scalable data infrastructure that can support Novellus’s growth and evolving data needs. The improved speed of data processing and analysis enables Novellus to respond more quickly to customer inquiries and market changes, maintaining their competitive edge.
5. Enhanced Data Integration: The implementation of advanced data integration tools has facilitated seamless integration of data from various sources. This has improved data consistency and accuracy, enabling reliable analysis and reporting. The enhanced data integration capabilities have also reduced the time and effort required to manage data, freeing up resources for other critical tasks.
6. Scalable Infrastructure: The new data infrastructure is highly scalable, capable of handling increasing volumes of data without compromising performance or reliability. This ensures that Novellus can continue to grow and expand its operations without facing data-related bottlenecks. The scalable infrastructure also supports the addition of new data sources and analytical tools, providing flexibility for future enhancements.
7. Robust Security and Compliance: The new data infrastructure includes robust security features and supports compliance with regulatory requirements. This includes encryption, access controls, and monitoring to protect sensitive financial data. The enhanced security measures ensure that Novellus can handle sensitive data with confidence, maintaining the trust of their customers and stakeholders.

By leveraging advanced data technologies, Novellus has successfully built a robust and scalable platform that meets their complex data requirements and supports their rapid decision-making processes. This transformation enables them to continue providing tailored financial solutions swiftly and effectively.

Conclusion

The implementation of the Snowflake data warehouse and Azure data lake has transformed Novellus’s data infrastructure, providing a scalable and efficient solution that supports their complex data requirements. The new platform enhances the speed and accuracy of data processing, enabling Novellus to make faster and more informed decisions. This case study demonstrates the importance of leveraging advanced data technologies to support business growth and maintain a competitive edge in the financial services industry.

By addressing common challenges in data warehousing projects, such as data integration, scalability, and security, Novellus has positioned itself for continued success in the competitive lending market. The new data infrastructure not only meets their current needs but also provides a solid foundation for future growth and innovation.