Overdue Loans Setoff




A major South African bank

Project Overview

The SetOff project was designed to automate the settlement of overdue loans and other debts of bank clients. Most banks are entitled to transfer cash from client’s bank accounts to pay off debts of the client.

Most banks are entitled to transfer cash from client’s bank accounts to pay off debts of the client. In manual mode, several bank divisions were involved in the operation. Bank employees prepared a list of debtors, collected information about the client’s accounts, checked the account’s eligibility for the setoff, and issued appropriate documents. Afterwards, a manager authorized the transaction and the money was transferred.  In the meantime, 20 percent of the debtors withdrew cash from their accounts, dodging the payment of their debts.

The customer aimed to optimize the costs, increase the accuracy, and shorten the processing time. The long-term opportunities included creation of a framework for integration and streamlining of other bank processes.

Project Execution

IBA Group applied innovative WorkFusion technologies that automate repetitive actions and the time-consuming process of training and selecting machine learning algorithms for the work that is too complicated for robotics. 

IBA Group acted as a subcontractor, the contractor being Diverse I.T. Connections. The development was done from Minsk, Belarus with short planning sessions at the customer’s site.

The project lifecycle included the following stages: business analysis, requirement gathering, application development, creation of business processes (integration), and production. According to Agile methodology, the development stage was broken down to bi-weekly development phases with customer feedback loops.

IBA Group utilized numerous preloaded process templates, pre-built robotic, cognitive, and exception-handling components for the projects.

The project team developed bots for various application types, including Web, Java Swing, 3270 UI, Windows application, Unix Shell, SOAP/REST services, and other. The following technologies were applied: Java, Groovy, JavaScript, Maven, Git, and XML. The applications combine human and bot tasks and are designed to function on-premise or in the cloud infrastructure.


As a result, the processes of debt settlement were automated. Currently, 90 percent of setoff operations are performed automatically. These are collection of information about the client’s accounts, checking the account’s eligibility for the setoff, money transfer, and SMS texting to the client. The setoff that took one day is done within 5 to 10 minutes.

The customer was able to reduce the number of employees involved in the setoff and to increase loan repayments.

The future plans include automation of other business processes at the bank using the framework that IBA Group created when implementing the project SetOff.

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