The Challenge
The client’s legacy system, which handled the ever-changing, complex requirements of serving over 8 million student loan borrowers annually, became more at-risk each year, reducing the client’s competitive edge. Company leadership wanted an outside, objective assessment of commercial loan products, recommendations on vendor selection, and an implementation roadmap that would minimize risk, limit implementation costs, reduce operational costs, and improve service delivery.
Project Description
We provided strategic clarity on a decision framework for evaluating the technological, financial, and business viability of utilizing a commercial product to modernize student loan servicing capabilities. After using an RFI process and decision matrix to identify two platform options, we presented cost and timeline estimations, and a recommended path forward.
Outcomes Delivered
- Market scan of the loan industry landscape, resulting in Identification of 19 vendors potentially able to provide student loan processing capabilities
- A robust Request for Information (RFI) with documented requirements based on program goals, regulatory & budget considerations, tech factors, pain points, and enhancements
- A decision framework which included quantitative and qualitative scoring methods, verification of key capabilities through vendor demonstration of use cases and methodology, resulting in 2 viable vendors
- Comparison of implementation, transitional, and ongoing costs of two vendor platforms under multiple business model scenarios and timelines
- Final vendor recommendations, along with an implementation roadmap including migration approach / options, timelines, milestones, etc., and a 60-day detailed plan.
- An actionable plan to engage client staff in a proof-of-concept phase to verify the viability of the top vendor
