Why Using A Credit Score From A Single Credit Bureau Isn’t Good Enough

Lending Lifecycle Management

When it comes to deciding the creditworthiness of a person applying for a loan, the credit score plays a very important role. Whether it’s for business, or major financial investments such as buying a house, or a car, most lending institutions consider the credit score as an eligibility criterion. Not just that – telecom/mobile companies are seeking a credit score for determining the credit limit for a postpaid mobile connection, while house rental agencies are looking at a prospective tenant’s credit score for renting an apartment!

Insurance companies in countries like the US and UK look at the credit score of an individual for fixing the insurance premiums, in addition to various other demographic factors. In fact, the RBI has mandated financial establishments to access the credit scores of all applicants for loans and credit cards to determine their creditworthiness. Thus, having a good credit score has become imperative today for enjoying many services.

There are various models for calculating credit scores and each time a lender requires a credit score, the credit scores are calculated on the scoring model of the lender’s choice. A good credit score helps small business owners negotiate for better terms with the lender.

Let’s take a look at some of the factors that affect credit scores…

Factors That Affect Credit Scores

Payment History: Payment history of credit cards, loans, etc., including timely payments as well as the number of late payments if any and severity of late payments. This helps in assuring lenders about how effective is one in repaying the loans on time.
Duration of the Credit History: When an individual has a long credit history, lenders are reassured that there is substantial and exhaustive information on the individual’s credit behavioural patterns and thereby they tend to give a better and higher credit score.
Number of Hard Pulls: Hard Pulls or hard enquiries are made when by a lender checks one’s credit (to approve a loan or some credit or service like a credit card) when an individual applies for a credit. Though a single hard enquiry may not have much impact on a credit score, multiple investigations (especially when one tends to take multiple loans) can have a negative effect. A hard pull remains on the credit report for a couple of years and may result in a drop of 5 to 10 points in a credit score.
Negative Issues: Issues like foreclosure; defaults in payments etc. can negatively impact the credit score and can restrict one from being eligible to obtain a loan.
Public Factors: Any known records such as bankruptcy, will definitely harm the credit score.
Other Factors: Factors like credit utilization rate, amount of debt, age of credit accounts and number of new credit accounts etc. have an impact on credit score.

The 4 Major Credit Bureaus In India

1. Experian

Experian PLC, a global consumer credit reporting company, headquartered in Ireland, has its branches in various countries including India. Experian is an independent entity that is licensed by the Reserve Bank of India (RBI).

2. TransUnion CIBIL

Credit Information Bureau (India) Limited, also known as CIBIL™, was India’s first Credit Bureau founded in 2000. Its technical partners are TransUnion International (a global credit Information Company) and Dun and Bradstreet (That provides credit information on a worldwide scale).

3. CRIF High Mark

CRIF High Mark is another credit bureau operating out of Mumbai and is an independent entity that is licensed by the Reserve Bank of India (RBI). High Mark caters to all borrower segments and has pioneered the building of India’s first Microfinance Bureau Database, which is also considered to be the world’s largest database for Microfinance.

4. Equifax

Equifax Credit Information Services Private Limited (ECIS), is a joint venture company between Equifax Inc., USA and seven other prominent financial institutions in India. Equifax is headquartered in Mumbai and is an independent entity that is licensed by the Reserve Bank of India (RBI).

Why Do Credit Scores Differ?

A credit score is generally made up of a three-digit number ranging from 300-900. Any score more than 750 is considered to be an excellent and creditworthy score by lenders. The closer one gets to the 900 range mark, the better is his/her chance of securing the loan.

Here are a few reasons why different lenders may get different credit scores for the same applicant…

1. Scores are calculated using different scoring models:

The scoring model of all the four credit bureaus differs slightly in their computation manner though all lie predominantly within the limits of 300-900. The difference in scoring model lies in the weight factors given to various aspects of an individual like credit history, settlements and write-offs, the income: loan proportion etc.

For instance, the three credit bureaus namely Experian, Equifax and TransUnion CIBIL that have global operations teamed up together in 2006 to create a new firm called VantageScore Solutions that recently came out with the latest scoring model Vantage Score 4.0, above its earlier version VantageScore 3.0.

Likewise, each credit bureau follows slightly different standards in computing the credit score.

2. The scores may belong to different dates:

Credit scores may change at any given time; hence, it is necessary to compare credit scores across the same date.

3. Scores may be calculated by using different credit reports:

While specific lenders are connected to all four major credit agencies, other lenders may report to just one or two reporting agencies. This results in the probability that the credit bureau may be missing out any piece of information that either helps or hurts one’s score.

Is It Good To Have Multiple Credit Scores?

A credit score from a single credit bureau Isn’t good enough. The reason being credit scores are similar to fingerprints; no two scores can be the same.

As the scores calculated by each agency may differ slightly having multiple credit scores helps to offset one lower score with another excellent rating, and hence one can bank on whichever score works well for the nature of loan required (credit card loan, car loan etc.)

As mentioned earlier, credit bureaus periodically update their credit scoring models (like the VantageScore 3.0 to 4.0 version) so there are multiple score versions. Each version features unique formulas that cater to, say, credit card issuers, lenders for mortgage loans or automobile salespeople, and each placing importance on different factors.

For instance when going for an auto loan, if one has missed a payment of an earlier car loan or has a car repossessed, then these factors may be given extra weightage in the auto score computation by a particular credit rating company. Factors like missed credit card payment may also be noted and accounted; however, these may be weighed on a different scale.

Therefore, a borrower will tend to get marginally different scores depending on what credit bureau score is opted, like the TransUnion CIBIL, Equifax or Experian Credit Score, as weight factor differs among these credit bureaus depending on the score model and the nature of the loan required.

Though the credit scores may vary, they primarily depend on the nature of information delivered by the credit-reporting agencies. So, focusing on one’s credit reports will significantly assist building one’s credit across the board.

With credit rating system being already on the anvil for online shoppers that encompasses online portals like Flipkart, Amazon, eBay etc., it thus becomes imperative for every company and individual to optimise the credit score, and also for lenders to switch to a better solution for analysing and computing various credit scores. Additionally, periodical checks on the credit score are necessary to safeguard and prevent identity theft and also correct errors in the credit report.

Finezza’s Comprehensive Credit Score Computation

Finezza’s Credit Analysis solution offers several reports, which evaluate many combinations of various data points that are taken from multiple credit bureaus. These reports help you gain detailed insights into the creditworthiness of an applicant. Not only will this help you get a more comprehensive credit score, but also help you cater to a wider range of clients that you had probably rejected by referring to a single credit score! It will also reduce the time taken to process a loan application, leading to faster disbursal, and improved efficiencies in the loan management process. To know more, head here.

While credit scores may differ across companies, they all primarily focus on how responsible one is concerning the loan borrowed. Hence it is advisable to exert caution in spending, repayment of bills as well as using multiple credit cards. In addition, having credit scores from different bureaus would definitely help in the long run.

5 Ways In Which AI Is Revolutionising The Lending Business In India

Lending Lifecycle Management

Interactive web-based connections have almost entirely taken over face-to-face communication. The impact of AI is all-pervasive in our day-to-day lives. All industries have now incorporated it into their operations, and lending businesses are no exception.

The financial deregulation led to a sea of changes in the banking and financial services industry with the mushrooming of many Internet-based financial and lending institutions. This, in turn, has led to the digitisation of financial transactions, including the entire process of lending, right from the initial loan application to the final disbursement, and all the stages after that too.

The ease of applying for loans, and the availability of truckloads of data related to the applicants, has led to a profusion of opportunities for lending institutions. It is now possible to get insights from this data, to make loan management simpler, with the help of sophisticated analytical tools thanks to AI!

Let’s take a look at some of the important conveniences that AI has provided to lending companies…

Here’s How Lending Businesses Have Benefited From AI…

1. KYC:

AI can help lending institutions know their clients better. For instance, customers making a call need not wait in the queue to be serviced by a customer service agent. Instead, AI-powered chatbots can deliver prompt service and also serve multiple customers at a time.

Further, by getting individual customer data, meta-analysis can be conducted to observe customer behaviour patterns and the loans can be specifically tailored to meet customer requirements. This will help in increasing profitability, and targeting a wider customer base.

2. Preliminary Screening:

Screening loan applications based on various credit models helps in minimising the enormous amounts of clerical efforts that make loan management a nightmare. With the operational tasks being taken over by AI, the company saves a tremendous amount of time, and teams can concentrate on the more critical aspects of the lending process.

3. Credit Scoring:

Lending companies depended on a single credit score to assess the repayment abilities of the loan applicants earlier. With the advent of AI, alternate credit scoring methods such as metadata analysis through a smartphone using AI and Machine Learning give an insight into consumer behaviour and their spending patterns, thereby giving an estimate about the person’s ability and earnestness to repay the loan. The turnaround time in processing loans has significantly reduced owing to the ease of decision-making, thanks to this feature.

Finezza, a complete loan origination and lending process management platform for fintechs, uses AI-enabled credit rating to assess a loan applicant’s creditworthiness. The software comes equipped with detailed credit analytics (integrated with 4 credit bureaus), KYC documentation & analysis, bank statement analysis and 360° loan eligibility assessment.

4. Fraud Detection:

Among various cyber crimes, loan stacking (customers taking multiple loans from multiple lenders) is a common phenomenon in the lending business. AI helps to identify suspicious and unusual behavioural patterns of the loan applicant, and thereby helps to identify fraudulent practices. For instance, if a customer has multiple loan apps installed from various lenders, AI can detect this and thereby flag the customer given his possibility for loan stacking.

On the other hand, lending companies can also take steps to keep the applicant’s data safe and prevent security breaches, using AI-enabled solutions.

5. Lowers Due-Diligence Costs:

AI is capable of comprehending billions of data in seconds and at the same time, keeps updating the data as well. This feature enables lending firms to minimise their due diligence expenditure significantly. Firms would otherwise have to manually sweep through numerous records starting from the prospective borrower’s credit history, his employment and his source of income, payment of taxes, assets, and so on to arrive at a decision as to whether he will be eligible for the loan, and whether he has the capacity to repay the loan installments on time.

Furthermore, such data needs to be updated at regular intervals if the loan is sanctioned, to track the buyer at all stages right from application to disbursement. Forecasting and updating such borrower behaviour manually is an extremely time-consuming and cumbersome process and prone to human error.

Finezza uses AI to offer access to data and insights across all stages of the lending lifecycle to all stakeholders. With Finezza, data can be processed in seconds and updated in real-time, leading to more effective loan management. Further, they are designed to enable easy integration with legacy and existing systems via APIs and customisable data export.

AI also helps to minimise the underwriting costs greatly. Additional benefits of AI include lesser write-offs and enhanced risk adjustment margin.

Here’s how Finezza helped Gromor Finance, a lending company, optimise their loan management process!

How AI Helps Both, The Lender And The Borrower…

Various AI-based solutions help to map the lender’s profile with that of the borrowers’ requisites, thereby eliminating the need for a detailed application process to be made by the borrower with various lenders. This helps in accelerating the entire process of loan disbursal.

Further, with the emergence of various smart lending applications, the lenders feel less burdened as the process of background checks, and credit monitoring is entirely digitised, and the borrower is also able to find his / her credit score in minutes and connect with a lender immediately.

From a lender’s perspective, AI-enabled smart tools help to verify the borrower’s data simultaneously across various online platforms and help the lenders in decision-making, while from the borrower’s point of view, it helps in submitting forms online and easy online verification, thereby facilitating loan disbursements in a couple of days.

Finezza utilises its exclusive AI technology to offer customised analytical solutions that enable better decision-making with respect to loans, and minimise the lead-to-loan TAT and also evaluate creditworthiness effectively, making it easier for borrowers to get loans without much delay.

Artificial Intelligence (AI) is undoubtedly here to stay, especially when it comes to the lending companies. With benefits like cost reduction and better-streamlined operating procedures, AI will only lead to better lending outcomes!

To know more about Finezza, CLICK HERE.

How Finezza Helped Gromor Improve Their Loan Management Process

Lending Lifecycle Management

Gromor Finance is a leading fintech company set up with a vision to make small business owners sustain financially. For their lending management solution, they relied on Finezza. Here’s how Gromor benefited by automating their disparate processes and improve its loan processing efficiency, using Finezza. It also enabled improved customer experience.

Introduction

Gromor Finance is a lending company specialising in unsecured small business loans for businesses that have been active for at least one year.

Small businesses are integral to the growth of Indian economy, adding up to 45% of the total Indian manufacturing output.

For any small business, funding is often a crucial need to turn their dreams to reality and Gromor, plays a pivotal part to nourish the small business ecosystem of India. It aims to empower small businesses to grow, by helping them with instant funds to purchase new premises, upgrade technology, hire more people, or simply meet their working capital requirements.

What differentiates Gromor Finance from the other lenders? Let’s take a look at some of the factors that make them stand out.

Simple Online Application Process – Just head to their website, and fill in the application form.
Affordable interest rates.
Transparent assessment of business loan applications.
Data security and confidentiality.
Faster processing of loan applications.

The Challenges

The main idea behind Gromor Finance was to encourage small businesses to focus on growth, and not let the lack of funds or inaccessibility to funds become a hurdle in their path.

However, they found that to be able to meet the need for quick funding, they had to work on their lead-to-disbursement TAT. There were still a number of inadvertent inefficiencies that stopped them from achieving the optimal lending lifecycle.

For one, the loan origination and loan management systems were disconnected from each other. As a result, it widened the knowledge gap between the various teams, making it tedious to reconcile information and ensure quick evaluation and disbursement.

They also realised that the data flowing into the system wasn’t being utilised. This was because of the lack of a centralised system that every team along the lifecycle could access and thereafter, make informed decisions. In addition to this, Gromor was dependent on a uni-dimensional credit assessment system. Their credit assessment was largely based on traditional CIBIL scores.

Let’s take a quick look at all the issues Gromor was facing with lending lifecycle management.

Disparate legacy systems for loan origination and loan management, making lending lifecycle management a disjointed, complicated process.
Lack of analytical abilities to gather insights from the truckloads of data flowing into the system.
Fractured decision-making owing to the lack of centralised profiles of small business owners and their borrowing histories.
Incompatibility with the different formats of bank statements submitted by applicants.
Uni-dimensional credit assessment system that was primarily dependent on CIBIL scores. Considering that the small business industry is largely unorganised, this proved to be an incomplete and ineffective way to assess the creditworthiness of a business owner.
Problems and errors during assimilation of data by collection agents and traveling salesperson which eventually created major backlogs and hurdles in achieving a simple, seamless and largely automated lending process.

What Gromor Finance Needed

Essentially, what Gromor Finance needed was a unified loan management system, to make the entire process fair, transparent and visible to all stakeholders across the lending lifecycle, at any given time.

They needed a centralised database that could give all involved teams a 360° view of the customers and their companies.

Additionally, since their credit assessment system did not take into account multiple sources of credit information, and they also weren’t utilising the data flowing into the system, they couldn’t make quicker and more effective decisions. They needed sophisticated analytics and a more comprehensive credit score to be able to assess loan applications accurately.

The Solution – Finezza Lending Lifecycle Management Software

We worked extensively with Gromor Finance to understand and map their processes while identifying the gaps and bottlenecks. We customised Finezza to meet their requirements and delivered a loan management solution to optimise the lending management lifecycle, and also make the most of all the data that was flowing into the system.

Finezza’s comprehensive loan management solution combines all the processes including loan origination, loan management, the credit assessment, servicing and collection into a single system. It followed an agile and iterative implementation assisting Gromor at every phase to replace their old fragmented systems with Finezza’s single cohesive unit.

Loan Lifecycle Management

Finezza’s intuitive solution for lending lifecycle management offers an integrated platform that combines all aspects of loan origination and loan management, thereby making the process and data transparent to all the teams involved.

Finezza also integrates information from the 4 main credit bureaus (namely CIBIL, CRIF, Experian, and Equifax), and helps create a more comprehensive credit score that Gromor can depend on to check the creditworthiness of the customer. With this detailed credit analysis, combined with updated KYC information, compatibility with varied formats of bank statements, GST analytics, and an effective loan eligibility estimator, they were able to make decisions faster to facilitate quicker loan processing.

In a highly volatile small business market sector, it helped Gromor Finance to do away with false positives and ensure reliable assessments.

Once the loan was disbursed, the system also took care of loan repayments and post-loan collection workflows helping to service the customers with an insight-driven experience. Finezza offered a unique mobile ecosystem that included a customer app, an FoS app, and a collections app that provided transparent and quick access of information to all key stakeholders from a central repository.

Vertical Solutions for Decisioning

In the previous system of Gromor, there was no scope for decision making even if abundant data was available. There was not an effective way to make well-informed and predictive decisions. But with Finezza’s sophisticated analytics suite, Gromor was able to access decision-making reports that helped to improve their process, set a loan turnaround time, and make sure that they adhered to it.

Finezza offers preloaded reports of special functions and insights using top of the edge machine learning and big data technologies. With continued use of the product, Gromor was able to generate custom reports with minimal development intervention and make several operational decisions that helped to improve their customer service.

Results Delivered

1. From Uni-dimensional to Multidimensional Credit Assessment

Instead of following a uni-dimensional approach to assessing the creditworthiness of an individual, Finezza helped Gromor to consider multiple sources of assessment that go beyond the CIBIL scores.

Finezza’s loan eligibility estimator takes into account several inputs ranging from bank statements, previous loan history, multi-credit bureau integration, GST information and more. This helped Gromor to predict the potential success of loan repayment and do away with false positives, which was not possible with the earlier approach.

2. Avoiding the Data Silos

The earlier systems of Gromor relied on fragmented and separated systems across the several stages of the loan lifecycle. But it was Finezza that powered Gromor with a centralised view of the entire loan lifecycle. There were no knowledge gaps and everybody was able to access the information they needed in real time and pass on feedback throughout the system.

Additionally, the analytical capabilities offered by Finezza helped Gromor Finance take informed decisions about the eligibility of an applicant.

3. Mobile Ecosystem

Finezza’s mobile ecosystem provides an intuitive suite of apps designed for all the stakeholders, that helped to reduce the loan turnaround time, automate customer notifications, and make key decisions.

Overall, Gromor Finance was able to ensure that the customer’s journey from application to disbursal was short and sweet.

With Finezza, they managed to streamline their lending lifecycle management process, and increase the client base owing to the time saved.

We are happy that Finezza helped make Gromor Finance a more effective, and successful lender!

Finezza: The Unique Lending Lifecycle Management Tool Your Business Needs!

Lending Lifecycle Management

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!