Intense competition in the lending markets demands that all lenders streamline their processes and routines to service the growing demand for credit. Thus, financial lending companies like NBFCs and MFIs need to leverage time-saving technologies to optimise their operations.
For example, manual processes of legacy loan management systems often fail to match the massive amount of data processing that needs to be done, given the growing demand for loans. Further, manual processes are executed at a staggering speed, with limited scope for scalability and mounting costs. In such cases, automation is the perfect solution to streamline the lending process on the whole.
Modern, foresighted lenders are looking on a lookout for advanced, agile, yet cost-efficient lending solutions.
How Can Cloud Technology Transform Your NBFC?
Cloud computing has transformed the process of software development, delivery, consumption, and support. As a technology, it is fast revolutionising how financial lending companies conduct business with the numerous perks that it offers. More importantly, it can benefit both lenders as well as borrowers.
Cloud technology allows lenders to operate at a comparatively low cost for high volume, providing cost-effective scalability to businesses. Further, financial lending businesses welcome the prospects freeing themselves from the hassles of infrastructure maintenance, upgrades, backups, and disaster recovery. This leaves them to focus on their business innovation goals and build great customer experiences when they leverage cloud-based solutions.
Cloud computing in lending management can make it easier for lenders to connect with their customers and cater to business needs in a streamlined fashion within a limited budget.
Here we explain how cloud technology can transform your NBFC:
1. NBFCs can Slash Capital Expense with Cloud Technology-Based Solutions
Escalated capital expenses often plague the profitability of NBFCs that depend on manual processes and legacy systems. These expenses may include the cost of the server, storage hardware, physical space, and software licenses and cost heavily to lending businesses. Additionally, NBFCs may also incur IT expenses like equipment for disaster recovery, failover, and redundancy. Another big chunk of capital expenses constitutes the cost of licensed security software that are used to protect against increasing data breach threats.
Using a cloud-based loan management system, NBFCs can omit the outlandish expenses involved in selecting, procuring, and installing hardware components. Cloud-based loan management software subscriptions substantially slash down the cost for both hardware and software. Intelligently leveraging economies of scale, cloud-based loan management systems acquire, facilitate, and manage the equipment as well as software infrastructure in a cost-efficient manner as compared to on-premise solutions for loan management.
2. NBFCs can Significantly Lower their Operating Costs with Cloud Technology-based Solutions.
NBFCs that leverage legacy lending management solutions always end up paying for IT hardware and infrastructural cost as an ongoing basis. Operational costs for NBFCs that rely on legacy systems may include electricity, installation costs, maintenance, and updating costs for both hardware and software components.
Cloud-based loan management systems eliminate the cost involved in maintaining a large workforce to oversee IT operations. It leaves staff to use their skills and resources for activities of prime importance like customer acquisition and sales.
3. NBFCs can Streamline Operations with a Cloud-based Loan Management System.
NBFCs that use Cloud-based loan processing systems accomplish tasks in a streamlined manner as compared to manual loan processing systems. It becomes accessible to onboard customers with cloud-based lending management software. Even lenders do not need to download, install, and test them on local servers. They can conveniently dedicate hardware and software resources in the cloud, with solutions that are easy to deploy and configure. Lending companies use fully-configured cloud-based software to benefit from their instant availability and security. Especially in the case of geographically distributed remote teams, Cloud-based systems are a plus. These systems can ensure the instantaneous nature of functional improvements that benefit lending businesses.
4. NBFCs Enjoy Desirable Scalability with Cloud-based Loan Management System
As a business expands, it requires additional hardware, physical space, and electrical and cooling ware to support its growth. There are times when the company needs an upgrade to support growth. Cloud technology can aid NBFCs in scaling. It can fortify NBFCs with capabilities to add hardware and software resources to accommodate the increased demand for expansion of business operations. Further, NBFCs can easily and quickly deploy resources as and when needed. They can increase the capacity to meet a sudden rise in demand in case of an increase in the number of loan applications.
5. NBFCs Count on Reliability of Cloud-based Systems
There are times when NBFCs face occasional high demand and are met by crash downs of their management solutions. These crash downs can result from power failure, hardware failure, overload, or multiple crippling factors, etc. Using cloud services allows NBFCs to store data and other resources on a centralised server. The data is available 24*7 when it comes to cloud systems. The reliability is a result of storage hardware, backup generators, redundant hardware, failover clusters, and dedicated communication of the cloud servers.
6. NBFCs Benefit from the Data Services of Cloud-based Management System
A cloud-based loan management software can help NBFCs work with better quality lending decisions for all the loan applications that come their way. NBFCs can even enhance their underwriting productivity with cloud-based data sources and services. Most cloud-based lending management systems collectively use data sources like credit data, alternative data, identity data, and other risk evaluation resources to access applications. Loan underwriters at NBFCs then take the accurate applicant profile report at present to determine the creditworthiness of applicants who have no credit history.
NBFCs can improve their applicant onboarding processes, loan origination, and even disbursal with cloud technology. Cloud backed solutions help NBFCs cater to a broader range of clients, lowering processing costs, and improving productivity and profitability. They even help create a better experience for the customers by making the process simple and thus helps NBFCs achieve their goals.
Finezza’s NBFC software is a robust cloud-based loan management system that flawlessly integrates with the existing lending ecosystems. It is a highly customisable system that syncs with credit data sources and services to help NBFCs make better quality decisions and reduce the overall application processing costs associated with an increase in volumes.