For small business owners, business loans are opportunities – either to grow the business, to upgrade their equipment/technology, to hire new people, or to simply meet their working capital needs. When they approach a lender, there are a few things they expect from the lender:
- An easy loan application process.
- Security of the submitted documents.
- A fair assessment of the application.
- Timely disbursement of funds.
As lending companies, it is essential to ensure that these expectations are met. And this can be achieved only with optimal lending lifecycle management.
However, most lending companies still use traditional loan management systems that can make the loan fulfillment process longer than necessary, and fraught with a lot of confusion. Let’s take a look at the challenges that traditional lending lifecycle management systems create for lending companies.
Why Traditional Lending Lifecycle Management Systems Are Obsolete…
Traditional loan management systems still follow the ‘siloed’ approach – with loan origination and loan management being two different functions. This critical ‘disconnect’ between the functions creates a lack of transparency to the stakeholders across the lending lifecycle, thereby delaying the process in case of any misinformation.
A lot of lending companies still use spreadsheets and calendars to organise the immense data that inevitably flows through the loan lifecycle. While this may not necessarily be ineffective, it can take up a lot of time, and shift the company’s focus from it’s ‘real’ business of lending.
Here are some of the bottlenecks a traditional loan management system:
- Delayed loan approvals due to ‘manual’ tracking of data.
- Unclear loan decisions based on inaccurate or incomplete customer credit information.
- Room for human errors due to inconsistency in data entry or maintaining wrong information.
- Possibilities of data security being compromised.
- Time-consuming and costly to produce reports.
- The process requires human intervention at all stages.
- Customer services may suffer.
- Hard to assimilate and reconcile information, and lack of a unified view for all the stakeholders involved in the process.
Given that most lenders are going the ‘digital’ way and have online loan application processes, it is time to ditch the traditional methods of loan management, and adopt an automated, more ‘centralised’ approach to lending lifecycle management.
Streamline Lending Lifecycle Management with Loan Management Software
In the current fast-paced lending environment, businesses should leverage loan origination and management software and utilise modern lending technologies to gain a competitive edge. Traditional lending processes and systems are overly time-consuming and largely manual.
Loan management software comes in handy to help you automate the entire loan lending process. From loan origination software to credit assessment, monitoring loan disbursal and loan repayment, a good loan management software is what you need to ensure that you deliver a better experience to the borrowers.
Investing in a good loan management system accelerates the entire lending process and helps you focus on delivering great customer experience and taking effective lending decisions. Let’s take a look at some of the incredible benefits of getting loan management software…
Advantages of Loan Management Software
Here are some benefits of using a loan management software to automate the end to end loan lifecycle process:
#1. Operational Efficiency
Automation has always delivered a positive impact in every business process and lending is no different. It increases productivity, reduces cost and improves the overall quality of your products and services – in this case, you can optimise the lending lifecycle management process and reduce the loan origination to disbursement TAT.
It helps you to concentrate on your real business – lending!
#2. Data Integrity and Security
When you store customer information manually or in separate systems, your data is vulnerable. You could end up losing vital information if you are careless.
On the contrary, with loan management software, you get inbuilt security measures to keep your data protected, and also reduce the incidence of human errors which is a major issue in manual processes.
Additionally, if you intend to make the data accessible to all, you can always provide conditional access to the stakeholders based on their authority or how relevance that information is to them.
#3. Document Management
With the use of an automated loan processing system, the documents are secured and saved in a centralised system. All your data is stored in a single place in an encrypted format.
Also, with features like real-time sharing of data and options of automatic creation of data, you can manage customer information with ease. This helps you streamline the entire loan management process wherein all related documents can be easily retrieved.
#4. Robust and Scalable Solution
You can manage several loan applications at a time. As opposed to a manual loan processing process, you can greatly reduce your loan turnaround time by approving and disbursing loans quickly.
#5. Agility and Integration
It helps your business become agile and eliminate threats before they strike. You can easily identify late loan repayments, potential defaulters, and other problems, and take the right decision.
Also, you can easily integrate automated systems with your own legacy systems to make it more worthwhile for your business.
#6. Improved Customer Experience
As the world has become increasingly digital, customers expect the lending process to be quick and simple.
In a Federal Reserve 2016 survey, nearly half of all respondents complained regarding the difficult application process and time to receive a credit decision.
An automated lending system can dramatically change this perception by simplifying and accelerating the entire process.
When automation is applied to the lending process, all required information is assimilated quickly, accurately and transmitted to the lender. This helps to make credit decisions faster and satisfy your customers.
#7. 24/7 Access to All Stakeholders
All parties across the lending lifecycle can readily access data from anywhere and anytime. By opting for a software that unifies the loan origination and management systems, information is readily available to everyone, right from the sales and marketing teams, to the accounting and finance teams.
They are also better able to assist and provide guidance to customers, prompting for information when needed, to help the applicants.
#8. Multichannel Digital Notification
Automation reduces the manual work associated with notifications. Every loan application needs a response system and a loan management software helps you create notification templates that can be easily populated and sent out to your customers across each milestone of the loan process.
It helps to greatly reduce printing and mailing costs and secure digital retention of notifications as data records.
#9. Analytics Integration for Better Decision Making
You don’t have to rely on just excel tables or disparate reports to make key decisions. A loan management software has special in-built analytical tools that help to slice and dice data to its finer details.
This will help you identify areas of process improvement and take well-informed decisions, that are otherwise cumbersome and time-consuming.
#10. Better Collaboration
Automation eliminates repetitive manual steps and ensures that all the teams involved are on the same page, looking at all the data on a single system. Digital execution allows human expertise to be applied where it is needed the most.
Introducing Finezza – End-to-End Lending Lifecycle Management Software
Finezza’s one-stop lending lifecycle management solution provides a comprehensive and unified platform that spans the entire lending workflow from start to finish. It helps you reduce the loan origination to disbursement TAT, and do away with the time-consuming, error-prone, traditional loan management systems.
Finezza intends to empower you with the capabilities to optimise the lending lifecycle, improve customer relationships, and drive your growth trajectory.
What Does Finezza Offer?
Finezza offers a unified, automated ‘horizontal’ lending lifecycle management platform, aimed at reducing the loan origination to disbursement TAT, and ensure accessibility to data at all stages of the lifecycle to all stakeholders.
The platform is supported by ancillary ‘vertical’ solutions that help analyse the data flowing into the system, making it easier to optimise the lending process further. Let’s take a detailed look at what Finezza has to offer.
1. Unified Loan Origination and Management
Contrary to the ‘siloed’ approach of traditional lending management systems, Finezza combines loan origination and loan management into a single platform, to ensure transparency and ease of access to the data flowing into the system. You can manage multiple facets of loan portfolio starting from prospecting to closure and monitoring.
This approach to the lending lifecycle makes it easier for teams to access loan-related information at all stages, and share information easily.
2. Process Management Portal for Internal Teams
All loan-related data is stored in a ‘centralised’ system, that all teams across the lending lifecycle can access, analyse, and share.
Also, Finezza gives you the option to customise access to ensure data confidentiality. Every user will have their own credentials to view the system. You can apply enterprise-ready access management groups to control and monitor access of every dataset inside the system.
3. Reporting and Analytical Tools That Go Beyond Standard Tables
Finezza does not believe in providing analytics as a supplementary tool. Rather, analytical tools are at the core, enabling you to make accurate decisions at the right time.
The predictive analytics and insights help you refine assessments with respect to credit assessment criteria, focus on improving the process where the turnaround time was not met properly and gauge loan repayment success.
It will help you understand your strengths and weaknesses by improving your loan lending process.
Finezza’s Core Products, Tools and Features
Finezza’s loan management technology offers you a 360-degree view of the loan application and related data throughout the lending lifecycle. From calculations and workflows, to compliance, financial analysis and servicing, all aspects come together on a single platform.
By eliminating the associated manual processes, re-keying of data, duplication of efforts, printing and mailing of documents, our lending lifecycle management software brings inevitable efficiency.
Key Features of Finezza’s Loan Management System Platform
- Mobile Ecosystem – Finezza offers a suite of apps to deliver customer services with ease. Its mobile-friendly ecosystem helps you to facilitate all requests, detect potential delinquencies, optimise the conversion funnel and ensure seamless loan servicing.
- Reporting System – Create dynamic reports and trackers to gauge organisational performance and efficiency. You can manage loan books, mandate costs, assess risks with built-in thresholds and triggers that are customisable according to your requirements.
- Admin Panel – Finezza provides an administrative console to add, customise and remove various configurable objects to dictate workflows, policies, rules, users and roles.
- Loan Origination System – A scalable workflow-based system that helps you manage incoming requests, onboarding customers, decision-making process and associated communication with customers.
- Credit Analytics System – This facility provides well-rounded and deep analytics around customer information from multiple sources to act as a decision support system to assess credit decisions and highlight any risks.
- Loan Management System – A comprehensive system that aims to provide post loan management services, accounting, loan recovery and other customer services.
- Advanced Analytics Systems – Artificial intelligence and machine learning-based services to decipher patterns, trends, correlations of variables. This provides deeper insights to capitalise on opportunities and improve any shortcomings.
- Core Operating System – The fundamental system that defines foundational services, framework and engine for all the functionality to be put to use. This includes task, process, workflow manager, notification and communication frameworks.
- Infra Manager – Manages infrastructure and build services to enable monitoring, deploy security practices, audit and other services.
Advanced Credit Rating and Assessment
When it comes to making lending decisions, the credit score really matters! With traditional loan management systems, it becomes difficult to find a comprehensive credit score that reflects the ‘real’ state of the borrower’s repayment abilities.
Finezza offers a more well-rounded credit score by integrating multiple credit bureaus (CIBIL, Experian, Equifax, and CRIF), that helps you make a more informed decision about an applicant’s creditworthiness.
This assessment is supported by bank statement analysis, that takes into account both business and non-business transactions, along with GST analytics, thereby giving you a balanced picture of where the applicant stands.
Let’s understand this in detail!
1. Bank Statement Analysis
Finezza’s bank statement analysis algorithm is one-of-a-kind and showcases the team’s deep domain understanding concerning credit evaluation. This facility can understand and analyse 600+ formats from more than 250 banks across the country.
Not just that, it analyses singular transactions and data at the unit level to create several visualisations to aid the credit evaluation process.
2. Multi-Bureau Credit Assessment
With Finezza’s strong background in data science and big data technologies, it is able to offer its own analysis of credit bureau data. Rather than just relying on the credit score as the prime criterion to assess the loan repayment success, it delivers multiple reports using various data points obtained from multiple credit bureaus (as mentioned earlier). All of this drastically reduces the chances of NPAs and bad credit.
3. 360 Degree Loan Eligibility Assessment
With Finezza, you can create your own customised loan eligibility criteria and include your calculations to make the right credit decisions. You can choose the bureau you like to include, exclude duplicate loans and view all aspects of the loan, so that you assess the creditworthiness of an applicant accurately.
Additionally, you can use the information from GST analytics by factoring in the applicant’s tax fillings on GSTN as a data source for flow-based lending. Never miss out any detail and come up with a precise credit assessment with your own analysis that too in a matter of few hours using a single system.
4. KYC Documentation and Analysis
Finezza employs an AI-driven KYC framework to compile and store customer data from various sources. This will provide you a clear picture of the customer’s financial history and help you analyse it in detail.
Unique Mobile Ecosystem
Let’s take a look at Finezza’s unique ecosystem of mobile apps…
1. FoS App (Feet on Street)
Traveling salespersons can use this app to access the loan origination system real-time and register customer details immediately. Here are some of the features of the FoS app:
- End to end LOS functionality.
- Real-time document uploads.
- Live status tracking.
- Target tracking and reports.
- Location tracking.
- Automated follow-ups.
- EMI Calculator
2. Customer App
This app helps customers keep track of their applications. Some of the features offered by this app are:
- Self help
- Real-time document uploads.
- Live status tracking.
- Proposal acceptance and repayment schedule.
- Document requests/vault.
3. Collection App
Collection agents can use this app to track the status of repaying customers. Here are some of the features offered:
- Tracking collections.
- PTP tracking.
- Follow-up tracking.
- Real-time customer information.
- Location tracking.
- Collection updates (web and mobile).
- Address locator.
Why You Should Choose Finezza
1. Smart Lending Solution
Finezza’s comprehensive suite of solutions makes your lending process quicker, smarter, easier and more agile.
2. Plug and Play Platform
Finezza is user-friendly. It is a plug and play platform with a pre-built front-end user interface. In the event of any operational disruption that blocks access to your physical office, you can still manage the process from anywhere. This model preserves your business without any loss of data and offers convenience to both your employees and customers.
3. 360-Degree View of Company and Client Profiles
Finezza’s unique dashboard offers a 360-degree view of the customer and company. This will greatly reduce your lead to loan turnaround time and enable you to be up to speed with the status of the application at various stages of the lending lifecycle.
With all this information readily available, and the ease of sharing it across the lifecycle, it becomes easier to take effective lending decisions without wasting time.
4. Easy Integration
Finezza delivers secure APIs and data pipelines to seamlessly integrate with your existing platform, legacy systems and other software. Also, it supports a wide array of loan products in the commercial, consumer and collateral-based sectors.
5. Unified System
Mostly lending systems are partly automated and controlled in disparate systems. This ‘siloed’ approach leads to a disconnect between stakeholders, and creates confusion about the status of a loan application across the lending lifecycle.
Finezza’s unified platform makes all the data easily available to the different teams – every stakeholder knows exactly what’s happening with a particular loan application, and can pass on important feedback pertaining to it. This information exchange can save a lot of precious time, when it comes to making a lending decision, or simply closing a particular application.
6. Analytics at its Core
With a strong analytics arsenal, you can predict and reach out to the right customers at the right time and improve customer acquisition. Additionally, you can easily identify bottlenecks in the process and gain deeper insights to optimise the lending lifecycle.
Configure your lead to loan turnaround time and measure KPIs to persistently monitor your progress. This will enable you to increase the loan lifecycle value so that you can retain and gain profitable customers.
Why Is Finezza Unique?
Finezza offers a comprehensive credit assessment tool that goes further than just taking the credit score into account. Our credit assessment algorithm runs through several credit bureaus, bank statements, KYC information and other behavioural and demographic factors. All this data is gathered in a matter of seconds to help you automate your loan decision approval.
You can be rest assured that your decision is precise by doing away with possibilities of false positives, NPAs or credit going bad. Define your calculations and analytics to thoroughly analyse an applicant’s creditworthiness.
Finezza is built in an iterative fashion by a team that is well-versed in this domain with a deep understanding of modern technologies and business processes. We understand that reports should not be mere tables that depict what has happened. It should rather bridge the gap between data and performance by identifying trends, foreseeing opportunities and removing bottlenecks.
All the insights gained from the analytics should be fed back to your operations to improve your loan lifecycle and credit assessment processes. That is why we believe that analytics should run vertically alongside the process and form the very foundation of your lending process.
Last, but not least, Finezza incorporates data security measures to make sure that all information is protected. Our cloud-based platform ensures that your software system is scalable and able to meet the demand. It grows as you grow.
One-Stop Solution For All Your Lending Needs
With Finezza, you can find the right solution for your company for a wide range of loan products. Here are the type of products it supports:
1. Consumer Lending
Consumers today have busy schedules, and look for quick solutions. Applying for a loan and getting it approved is something that is commonly viewed as an unpleasant experience. The last thing that consumers want to deal with is a long cumbersome process that leaves them fuming.
Instead, create a fast, simple and convenient loan process with a digital loan management solution. Finezza streamlines the entire process for capturing direct and indirect retail loans to help you grow your loan volumes and add value to your customers.
2. Commercial Lending
Whether you are looking to grow your commercial lending portfolio, overall customer experience, reduce operational costs or automate compliance, Finezza has end to end loan management software solutions you can trust.
Grow and evolve your lending business confidently with our focus on the full loan lifecycle and best-in-class technologies. From simple to complex operating lines, asset-based lending and small business loans, we have got it all covered for you.
3. Collateral Based Lending
An integrated collateral and loan management software for fintech companies, Finezza offers a comprehensive solution that helps you reduce operational risks associated with collateral-based lending. For efficient collateral-based lending, companies need up to date accounting and asset performance information. A unified dashboard helps monitor assets effectively.
4. All-in-one Lending
If you have multiple needs for multiple loan products, our lending software solution covers all aspects of lending. It creates a common 360-degree view of your business and connects loan origination, credit assessment and loan servicing across multiple loan products in a single integrated lending software system.
With all lending lines unified and consolidated through your loan lifecycle process, our solutions provide you with an ultimate route towards operational efficiency. Reduce redundancies in your process and achieve positive growth in your business.
Choose Finezza for End to End Support, Cost Reduction and Speedier Lead to Loan TurnAround
If you are cruising along changing customer demands, volatile business processes and multiple legacy systems, it’s time you make a change to stabilise your stand and deliver excellence. Finezza is a one-vendor solution that redefines the narrative of lending businesses.
With no complexity and uncertainty, Finezza automates your loan lifecycle in a straightforward way and connects the dots of business agility and operational efficiency.
It is devised to fit its unique fragments of technology into your business needs and can be customised to match your requirements. Be it paperless loan processing or complying with regulations, Finezza’s simple and intuitive user interface transforms customer experience like never before.
Setting up automated lending solution, mobile-friendly platforms and data capturing systems is like tailoring a win-win situation for you and your customers. Explore Finezza’s next-generation comprehensive and customisable loan management solution today!
Get in touch with Santosh at +91 98450 76647, or Krishnan at +91 90046 89536, to know how Finezza can be used to optimise your lending lifecycle!