Lending Solution in a Box
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A government-owned bank sought an online lending software solution for payday and microfinance lenders due to a lack of internal resources. The recommended system features a proprietary credit risk scorecard and automated decision-making for loan applications, enhancing risk assessment and operational efficiency. Additionally, it integrates with other programs and supports regulatory compliance, ultimately improving loan management and reducing non-performing loans.
Lending Solution in a Box
- 1. Context: A government-owned bank was searching for an online lending software with credit application processing and loan management for payday lenders, microfinance, and online lending businesses. This SME lacked the working capital and skills to develop their own lending solution. Recommended configuration included several key creations: • One of them is a proprietary credit risk scorecard, which includes performance indicators, such as social network behaviors. This system monitors activities that would impact the risk profile of these individuals. • It also includes creation of new loan application; monitoring system recommendations with ability to override decision rules, if necessary. This system was able to revise inputs, such as funds transfer information, notes on customer conversation and action plan. Lending solutions in a box Better mitigation and management of non- performing loans Improving risk assessment and credit decision accuracy Optimal resource allocation gives lean resources and limited time Digitally catering to regulatory and compliance needs in real time Adopting the right ready-made IT solutions Automated processing to gain efficiencies Around-the- clock tech support and fully managed solutions Proprietary credit risk scorecard for optimal risk assessment and pricing Timely updates in tandem with banking regulations Built-in triggers to keep out payment issues Fully managed solutions Challenges experienced by online lenders Case study Maximization of capital and operational budgets utility Client impact: • Brought customization to processes and workflow • Integrated easily with other programs • Enabled automation to processing systems • Developed a proprietary credit risk score-card for risk assessment of portfolios Functionality overview Loan origination • Automatic information processing and decisions • Loan underwriting Collection • Action planning • Payment receipt • Write-offs Servicing • Account management • Payment receipt Reporting • Portfolio reports • Risk ratings • Collection ratings Collateral management • Collateral type • Collateral valuation • Revaluation Front office - Loan application form - My account Customer information Decision Expert scorecard for automatic scoring Decision rules for automatic decisions Included in the solution: Payment processing services External services — online data storage and online customer relationship management (CRM) External databases Credit bureaus Information Varun Mittal Global Emerging Markets FinTech lead varun.mittal@sg.ey.com Contact us FinTech Hub www.ey.com/sg/FinTechHub