A lending management solution is a must for all financial institutions to provide a seamless borrower experience and streamline the end-to-end process of the lending cycle. From origination, underwriting, assessing creditworthiness to loan servicing and repayment, a single open-architecture solution can make lending a painless process.
Whether you want to provide loans to commercial entities or individual customers, a singular platform with multi-integration capabilities can reduce the complexity and costs associated with managing multiple systems.
10 Must-Have Integrations for Your Loan Management System
Here are 10 must-have integrations for loan management software:
1. eKYC Seamless Integration
As you are onboarding new customers, you will require an immediate verification and registration process so that you can move on to the next phase of the lending process. Integration with a full-stack eKYC platform to verify user identity is key to maintain 100% compliance with regulations.
Authenticating important ID proofs including Pan Card, Aadhar, Voter’s ID, and Driver’s license without the need for physical checkpoints can help save high overhead costs and seamlessly onboard customers from even remote locations.
2. Integration with Credit Bureau
After onboarding and initiation of the loan application process, it’s essential to run credit checks and verify the credit profile of the borrowers to make the right decision. Fetching credit reports from multiple credit bureaus will ensure to comprehensively assess the creditworthiness of the applicant and perform an all-round check.
Simple and efficient integration to primary credit bureaus like CIBIL, Equifax, Crif, Experian, etc. will help make credit inquiries and payment history on credit accounts.
3. GSTN Verification
When assessing the creditworthiness of SMEs and large-scale enterprises, it’s vital to move from traditional asset-based lending to data-based lending. Financial institutions can simplify their credit assessments with consented GST data aggregate.
The utilisation of GST data can cross-verify real-time information to ascertain the cash flow and turnover details of the commercial entity. This can in turn help to bring down NPAs and the cost of processing credit assessments.
As several financial institutions are adopting a paperless lending process with online application, approval, and loan disbursal schemes, digital signatures are now the need of the hour.
This way applicants can electronically sign documents from anywhere through the authenticated methodology and digital signature token. Numerous forms like sanction letters, consent forms, mandate forms, and agreements that require the signature of the applicant can be performed and integrated into your loan management system using UBS token-based signature solution and APIs.
5. Digital Payments
With the increasing demand for digital payment and going cashless, it only makes sense for banks and financial institutions to adapt to the norm in their loan management software. Payment integration with popular credit/debit cards, e-wallet, bank transfer of NEFT, IMPS, RTGS, UPI, etc, are a must-have to leverage the convenience of making mobile payments anytime and anywhere.
When collecting loan payments through recurring EMIs, you can integrate with NACH or National Automated Clearing House. The National Payment Corporation of India has launched NACH as an enhancement for the existing Electronic Clearing System and in a move to consolidate multiple ECS systems across the country.
A loan management software can provide integrations via APIs to a comprehensive NACH solution to automatically collect payment debits and mandate NPCI compliance for corporate and banks.
7. Integration with Current MIS or ERP Systems
Financial institutions may be having a need to connect to the legacy system and exercise greater flexibility of having a unified system for their business process. ERP and MIS Integration to tools like Tally or OpenGL can enable automatic data transfer and result in better decision making.
Instead of manually entering all the details which can cause a huge drain of resources and even manual errors, businesses can leverage integration to move data efficiently and save from the hassle of making a manual entry.
8. SMS, Email and Whatsapp Communication Integration
It’s critical for all financial institutions to maintain communication with customers along the lending journey and provide an engaging customer experience at all touchpoints. From keeping the customer informed about their loan application, credit assessment checks, loan disbursal to delivering push notifications for remainders of loan payments, communication integration with SMS, emails and Whatsapp are key to provide trusted customer care. A loan management solution with custom integration to communication modules will help to aid marketing initiatives and stay ahead of the competition.
9. Cloud Telephony
Another tool the institutions use to augment marketing efforts and streamline business communication is using a cloud telephony service. It is a unified communication model that is hosted on the cloud and moves phone calls, video meetings, messaging, CRM, and business processes to a central system. This way you can gain full control of customer relationships and also integrate them with your loan management software to obtain a holistic outlook and make better decisions.
10. Hosting Infrastructure Solution
All institutions need to manage all services including the website, servers, database, email, software solutions with a singular hosting provider. Thus the solution you choose should be compatible with the hosting infrastructure service provider. With several cloud services like AWS, AliCloud, and more, they may help to speed up the performance and reliability of your hosted services with improved security.
Online and digital lending has evolved in recent times with customer-centric processes to make the lending process reliable, convenient, and efficient. Besides digital lending, robust loan management software provides several opportunities for integrations to provide a comprehensive solution from start to finish. Thus all the processes of loan origination, loan servicing, debt collection, and reporting can be undertaken from a single system without any data silos.
Moreover, integrations enable the automatic transfer of data through APIs that ends up saving your resources and prevents manual intervention. A loan management software that provides the scope for multi-system integrations to various entities is essential to cater to a lag-free and transparent system.
Thus, when looking for the right loan management solution, it’s best to opt for a versatile solution that comes with integration capabilities to fully digitize your processes and enhance productivity.
Finezza is a modern loan management solution that offers easy to integrate APIs for a complete digital transformation of your lending lifecycle.
Contact us today to know more about our services and how we can help your business grow.