As mentioned earlier, automation of lending processes significantly simplifies all the steps of a loan lifecycle: from the formation of an application from a potential client to the issuing of a loan itself. How AI And Automation Fit Into Your Lending Process. Lenders can’t interact with customers the same way online as you do in retail lending. Meeting the needs of consumers has become increasingly difficult over the past few decades. An automated process then takes actions on behalf of your business based on the rules you set up. How Automation Improves the Debt Collection Process. As consumers demand more options from financial institutions, lenders must respond by providing more omnichannel lending options. For example, a credit card application can be approved within minutes, and even a mortgage application can be pre-approved within a few days. Guest Speakers: •Ronak Doshi, Vice President, Everest Group •Kriti Gupta, Senior Analyst, Everest Group. Key Takeaway for Lenders: Automation helps collectors to fine-tune their communication strategies, increase customer satisfaction, and provide fast follow-ups — an important part of the job. LENDING; SME; All companies make poor decisions from time to time. Create a Better Customer Experience in Online Lending with Your Decision Engine, How your Loan Management Software Creates a Better Online Lending Customer Experience, Benefits of Integrating your Decision Engine and Loan Management Software. Equip yourself with the technology driving the lending industry and start making any loan, any time, anywhere. This allows banks to enhance customer service, reduce costs, improve compliance, and generate revenue faster. Based on a decision waterfall built and refined by you, a decision can automatically occur approving a potential customer. Each document needs to be collected, carefully tracked and thoroughly reviewed against information provided on the loan application and from third-party sources. This boom period in lending has seen some of the bigger banks allocating as much as 35-40% commercial loans in their lending portfolio. But guess what. The solution is lending management automation. To cut a long story short, by growing the client portfolio with reasonable effort, automation allows lenders to make more money in less time. During origination, loan officers intake hundreds of documents a number of ways, including face-to-face interactions, email, fax, text, or documents uploaded through a site. Hyper-Automation for Small Business Loans in the US. The opportunities provided by automation for financial services are endless throughout the loan life cycle. With automation, the lending process can be streamlined to save time and reduce costs, resulting in quicker turnarounds that contribute not only to a healthier client base, but also customer satisfaction. As you may have guessed, the solution is automation. … This requires that you leverage other data sources to know your customer. A legit question arises: but what does it have in store for a lending company? Consumer lending automation helps banks transform today’s manual lending process to a truly digital process that meets the expectation of today’s customers. Even though the sector still relies on human judgments, automated debt collection software can improve both performance and productivity being non-intrusive in these hard times. We will address what automation is, and how it can massively benefit lenders who utilize it. 3rd party data sources present that data in a way that is optimized for automated computer analysis. Here at HES FinTech, as true advocates of loan automation, we use this technology in our projects and regularly cover it in our blog. SOLUTION OVERVIEW Challenges The consumer loan process is manual and paper-intensive: Manually processing … Slow lending decisions and frustrating loan application processes are among borrowers’ biggest gripes with traditional financial institutions vs competitors such as online or alternative lenders. According to the International Society of Automation, automation is “the technique of making an apparatus, a process, or a system operate automatically.”. To effectively serve the average consumer today, you need to have an online presence. Because necessary data need only be entered once – and even this part of the process can be partially automated – delays or inaccurate decisions due to missing or erroneously entered data can be all but eliminated. Based on the data from the credit bureaus, an automated lending platform checks the credit history of a potential client and discards bogus applications straight away. Automation reduces the cost and time of loan processing, improves credit accuracy, assists in the operations optimization and in enabling paperless transactions. An automated process then takes actions on behalf of your business based on the rules you set up. SoftWorks AI, an AI and computer vision-based mortgage automation firm, has entered a strategic alliance with Tavant, a Silicon Valley-based provider of AI-powered digital lending technologies, to provide organizations with an enhanced digital mortgage experience. It’s in the zeitgeist of our times: we live in a tech-influenced world and its impact gets more tangible with each year. When you embrace automation, you can set auto-approval and auto-rejection rules. Let’s sum up the benefits of an automated lending system, shall we? Deal with it, or — what’s better — embrace it. Contact us today and make automation a vital part of your lending business’s DNA. Our Securities Lending solution removes manual intervention in processing by automating repetitive tasks in the entire lifecycle of securities lending processing. It reduces costs through a better decision-making process, effectively manages problem debts, and increases compliance with corporate policies. This avoids wasting time sorting through loan applications that are an inevitable yes—or an inevitable no—and allows your lenders to focus on bigger loans, which require more hands-on attention. Often, a company’s refusal to embrace a disruptive technology in favor of tried-and-true traditional methods, doesn’t turn out well. Data is the foundation of the KYC/AML procedure. Customer management — it’s all about the automatically-collected data revealing the interactions between parties from A to Z. Generally speaking, loan automation systems help to get away from the long complex process of approving an application — something that’s been a major inconvenience for ages. Key Takeaway for Lenders: HES FinTech specialists can outline the best approaches in setting up the basics of the KYC/AML process: authority-matrix based operations, configurable workflows for various customers, maker-checker decision-making process and keeping registries of blacklisted individuals or companies. Automatic notifications on payments — borrowers receive alerts on upcoming and overdue payments in due course. Automation is the focus of intense interest in the global banking industry. With all that data, you need a way to accurately process all of the information to effectively lend online. Here at HES FinTech, we believe that the fear of integrations is exaggerated. Steve Allen. Using next-generation decisioning provided by true omnichannel lending software solutions will maximize the opportunities provided by automation. And, surely, the automation in loan servicing goes far beyond just keeping an eye on the timeliness of repayments. When lenders use automation, they are delegating the most repetitive tasks of your business to a system that will always do exactly as you instruct. Surely, it’s just the general idea. We next discuss digitisation, a key prerequisite for automation. We automate Securities Lending process using Robotic Process Automation (RBA). This frees up resources and reduces processing costs by 25-30%. Automation in securities lending post-trades processing is at an advanced state whereas repo participants are at various stages of transitioning from manual to electronic practices. How Automation Improves Compliance in Lending. Newgen’s Consumer Lending Automation Software is a one stop solution for your retail loan origination automation needs. They expect to be able to complete a loan application online. Watch now. As such, it is one of the greatest sources of risk to a bank’s safety and soundness. The report by Deloitte claims that 35% of participants already use automation while another 34% are actively experimenting with the technology. Customers can access anything they want online in every area of life. Lenders can set predefined business rules that automatically orders the relevant services. Analytical tools of the system provide lenders with an opportunity to offer better customer experience and improve efficiency and loan performance in the long term. Decision Maker . Posted: 4 months ago by Devin Parker. Within the lending industry, an automation system is typically set up through a series of rules in a loan management software. Omnichannel lending requires speed and efficiency in the underwriting process. This way, you’ll get a clear picture of the payment history for each client case and minimize the probability of data entry errors. With over 400 integrations under our hood, we help businesses to do integrations with 3rd parties such as AML lists, terrorist lists, PEP checks, Ministry of Interior data cross-checks, banks, and credit bureau data cross-checks. Automation can be leveraged to enhance the efficiency of your in-store lending team. Digital records — it’s 2020, and we’re living in an increasingly paperless world. Fill out the form below to stay in-the-know. You can enable automation to make more of your decisions more quickly. In other words, it makes out of an ordinary business a credit conveyor. This is a far cry from the rapid, automation-centric decisioning enjoyed in consumer lending for decades, enabling near-instant approvals for customers. 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