Background
State owned Land and Agricultural Development Bank of South Africa (Land Bank) provides specially designed financial services to commercial and emerging agricultural farmers across South Africa.
Land Bank leverages SAP technology which underpins the majority if its operations including the use of SAP Loans Management and SAP Collateral Management to manage their lending portfolio. Lending product types include short to medium and long-term loans, instalment sales and corporate production credit facilities.
The Challenge
ALand Bank initiated a project to improve the management of Collateral and respective reporting through various system enhancements. Committed to improving its operational efficiency Land Bank tendered for a strategic IT solutions provider who could give them the hands-on support they needed to implement the required system improvements.
Land Bank wanted to ensure the selected partner was able to share insights and apply best practice from around the world as well as help them enhance their SAP Banking landscape. Given their significant presence in South Africa and exposure to global best practice, Land Bank chose bancon as their strategic SAP partner.
The Solution
To begin, bancon worked closely with the technology stakeholders to gain a deep understanding of the existing Collateral system and reporting processes. This allowed the team to identify key areas for improvement and determine the most effective way to implement enhancements. A structured project roadmap was developed and prioritised accordingly before technology updates were rolled out.
One of the major improvements was the development of a new, consolidated Collateral Cover Report. Designed to provide a comprehensive view across multiple branches and divisions, the report incorporates various asset types, enabling better management of Land Bank’s exposure to unpaid debt. The bancon team collaborated closely with Land Bank’s internal teams to secure sign-off and successfully promote the updated reporting framework to the productive environment.
To further enhance operational efficiency, process improvements were introduced to streamline end-closing procedures, which historically was a significant pain point. These enhancements reduced bottlenecks, making financial reporting smoother and more efficient.
Additionally, significant optimisations were made to the defect management process. The team improved the speed-to-serve rates for reviewing and remediating level-2 and level-3 defect items, ensuring faster resolution times and better system performance.
The Results
By leveraging their deep expertise in SAP Banking, bancon successfully implemented all necessary enhancements over a six-month period, ensuring that Land Bank maintained a compliant and efficient IT landscape while significantly improving reporting and operational processes.
Kelo Mhango, General Manager IT - Land Bank said “Partnering with bancon has been instrumental in transforming our Collateral management and reporting capabilities. Their expertise in SAP Banking, coupled with their hands-on approach, enabled us to enhance operational efficiency and streamline critical processes. The successful implementation of the new Collateral Cover Report has significantly improved our ability to manage risk and support our agricultural finance initiatives. We value our collaboration with bancon and look forward to continuing this strategic partnership.”
Marinda Fullard, Associate Director S/4HANA Loans Management Financial Services - bancon added “It’s a privilege to have been able to support an institution such as Land Bank and to assist them in retaining their positive IT compliance status. Our teams have formed a strong working relationship which makes the engagement even more enjoyable.”
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