Digital Lending Platform – Lending moves with the times
Digital Lending has been making life easier for both lenders and borrowers in recent times. Especially during the Covid19 pandemic when social distancing was the norm and it was difficult to do business as usual, the digital lending platform along with other fintech innovations like Unified Account Opening and Video KYC software made life easier for both borrowers and lenders. Customers had the freedom to select the loan product of their choice at the time and place of their convenience while lenders had the opportunity to reach new borrowers and widen their customer base.
The digital lending platform covers the entire lifecycle of a loan from origination to disbursement.
It changes the traditional lending landscape and replaces human assessment with algorithms. It provides a relatively risk-free platform for lenders to assess creditworthiness and a simple and convenient platform for the borrowers to raise money for their immediate needs. By eliminating physical interaction and manual paperwork, it widens the scope for both lenders and borrowers.
Celusion Technologies offer a loan origination software called the Digital Lending Platform that has the following features:
- The digital lending platform can be used across devices to enjoy paperless loan sourcing through digital forms, resulting in a delightful customer experience and speeds up the feedback cycle. The entire loan life cycle is optimized on this platform from start to finish with no paperwork or human interaction.
- This platform covers the entire spectrum of loan sourcing channels which makes it a perfect fit for your lending needs.
- The smart forms can be auto-populated by using OCR technology and data retrieved from regulatory databases, resulting in minimal and accurate data entry. This saves considerable time and minimizes human data entry errors.
- The platform sends automatic status updates about the loan application or requests additional information through real-time notifications through our loan origination software.
- The Digital lending Platform offers benefits from reduced costs in KYC, AML, and other verification checks and helps to achieve a faster loan processing time by collecting information about the applicant or collateral through digital channels
- The software retrieves credit scores from bureaus, authenticates PAN / GST / Aadhaar with regulators, analyses bank statements, and verifies bank accounts through online API.
- The backend conducts field investigation, legal verification, technical evaluation, personal discussion, fraud scrutiny checks and manages their report submissions through an online portal
- Using the digital lending platform helps in making faster credit decisions, data-driven assessments, and a structured credit decision framework results in a more secure risk profile.
- The platform has an inbuilt Rule engine to match loan file parameters with product policies to offer the right product to the customer.
- The software uses a Decision engine to suggest the rate of interest and maximum FOIR based on the risk profile of the customer.
- There is a Workflow engine designed to align organizational credit approval policies including deviation flows. The platform defines product policies that are matched against loan application parameters to confirm eligibility & identify deviations.
- The platform helps to increase the lead conversion ratio by monitoring the application form filling stages and proactively offering assistance.
- At every stage of the process, individual or group level tasks are presented for approvals/waiver requests to the relevant stakeholders.
- Marketing and verification agencies are given role-based access, bringing all stakeholders into one digital ecosystem
- The platform has EMI and Eligibility calculators that can be used by the customer or sales team to assess the case.
There are several benefits that Digital lending offers –
Optimization of Loan Life Cycle:
Digital Lending technology thrives on process speed. The entire digital lending process is set in motion when the digital loan application is submitted along with the uploading of relevant documents.
Easy capture of Applicant information:
A digital loan application eliminates geographical barriers and the need for physical movement. A borrower can originate a loan application at the time and place of his choice. All the borrower needs to do is to fill in his name and the specific loan he requires. He can just upload his identification documents and the platform can smart fill the application using Optical Character Recognition technology.
Quicker Decision Making:
The business environment is pretty dynamic and the digital revolution has ensured that everything including loans gets processed instantly. The digital lending platform allows lenders to automate the decision-making process to simplify the procedure.
Digital lending technology replaces human judgment with decision rules which lend consistency to the process. The software follows pre-set rules and applies loan rules and credit policies consistently.
Comfort across Devices:
Availability of the Digital Lending Platform on smartphones offers it the maximum reach. The new generation uses the mobile for all their activities and they prefer processing their financial transactions on it too. A good onboarding solution allows for such usage across devices.
Perfect for first-time borrowers:
First-time borrowers find it easier to use a digital lending platform. They are mostly youngsters who are tech-savvy and use their cell phone for all their transactions. The digital platform streamlines the entire lending process by offering user-friendly features that require minimal manual input.
Compliance with Rules and Regulations:
RBI’s regulations for Banks and NBFCs for Lending are to be met by the systems that handle these processes. The fintech companies must ensure that their systems are compliant with these regulations and help the lending companies focus on their business growth only.
Power of Analytics:
Analytics helps the lender to track customer behaviour and understand the market trends which can be analysed to provide detailed insight into the lending process. This insight helps lenders to plan and allocate appropriate underwriting resources to satisfy seasonal demands. It also gives the lender a reasonable grip about loan sources, demographics, credit tiers, and other data points that can drive market strategy.
Improvement in Business Efficiency:
Lender resources can be deployed towards looking at new opportunities while the loan process is completely automated. Over a while, digital lending platforms reduce overhead costs by 30-50%.The normal manual lending system of loan disbursement was painful for both parties – the lender and borrower, alike. It was dependent on human resources and involved direct human interaction at each stage. A digital lending platform is a win-win solution for both the lender and borrower as it results in considerable time and cost savings while not compromising on risk and quality of customer experience.
Rationalization of Loan Underwriting:
All lenders need to use underwriting efficiency and decision quality to optimize returns. Digital lending software allows borrowers to submit all information and evidence online which eliminates paperwork. The time can be better utilized to engage clients in relationship building activities that maintain the quality of customer service.
Digital lending software is equipped to synchronize data from KYC registries, credit bureaus, banks, etc. to ensure that all uploaded data and documents are authenticated. Decision rules and underwriting algorithms are then used to determine whether the loan application passes the checks and balances of risk. A combo of artificial intelligence and machine learning ensures that the digital lending software offers better underwriting expertise than human discretion.
Digital Lending Software has changed the lending landscape permanently. Lenders can implement a paperless loan origination process using the latest fintech offering. Simple application, quick approvals, compliant lending processes, and the ability to continually improve process efficiency are a must for an ideal lending platform. We, at Celusion Technologies have incorporated the latest features on our Digital Lending Platform which makes it a desirable product to have if you are in the lending business.
Visit us on www.celusion.com for more information, we will be happy to customize a lending solution to meet your needs.