How to optimize the loan origination process?

Loan origination is one of the most complex and responsible processes in the financial area. When considering a loan application, lots of factors should be taken into account: applicant’s credit history, if the last loan was repaid on time, if there are any debts, the employment status, the assets, family status, and cosigners. This obligatory loan information should be structured in the form of an applicant profile, that could be used as a foundation for making decisions. In this case, the application consideration process should be individualized.

Among other obstacles the financial companies often have problems with:

• High risks of fraud
• Difficulties of recieving documents from the remote branches
• Extended periods of loan application consideration
• Lacking the unified tool for managing applications and documents
• Complicated search for documents in the paper archive

At the moment there are a lot of various software on the market, tailored especially for loan origination optimization, they are usually called “Loan Origination”. It’s not easy to get a grip on which software your company should purchase and use.

Our approach to developing banking software. Citeck EcoS Loan Origination.

We have closely analyzed different issues that banking companies encounter every day during loan application management. The result of it was the development of our own solution, that is tailored specifically for banks and other financial companies that are in need of automating and optimizing loan origination process.

The benefits that the financial company gets with the implementation of our solution:

• Reducing the period of application consideration process by 2-3 times
• Centralized client profiles
• Access to any client document in a matter of several mouse clicks
• Reviewing all client event history
• Transparent document and performer control system on all application consideration stages

In the core of our approach lies the concept of adaptive case management. Citeck EcoS Loan Origination solution is based on the notion that every client and his/her properties (financial solvency, cosigners, family status, assets) are a case that is to be solved. The financial company employees that make decisions on the case are also included, as well as the document package necessary to evaluate the case.

This approach allows to have access to all data necessary to make decisions, track client and employee activity, get all the data on the spot, and all in one win dow. This has a very positive effect on the loan origination optimization.

Besides that, Citeck EcoS Loan Origination features:

• Application consideration business process in the BPMN notation
• Branch financial limits management
• Unified win dow to work with application data, documents and tasks
• Drag’n’drop interface for uploading documents
• Obligatory documents availability control on every stage of the process
• Generating loan contracts and other documents by templates
• Integration with bank informational software
• Integration with credit bureau and scoring system (FICO)