No one likes waiting for long, especially when it’s something that is life-changing.
Everything begins when a Sacco member manually applies for a loan. What follows is a dozen pieces of paperwork to facilitate the entire process. This means credit officers must also manually collect information about the applicant.
Then enter credit scoring. It’s a screening process that requires approvers, relationship managers, and credit analysts to get additional documentation to support decisions to approve or decline the request.
If the loan is approved, the process doesn’t end there. There’s another mountain of paperwork needed to close on that loan. Whatever mechanisms that may be deployed are none of the borrower’s concern; their only wish is to complete the process as soon as possible.
Essentially, the sight of piles of pending loan forms in the credit department isn’t pleasing.
Why? The task of entering data for more than one client multiple times is tiresome. Add that to manually checking eligibility. The result is a costly, error-prone, and extremely time-consuming process, which delays decision-making by weeks. And most members will abandon the Sacco for this reason.
Without a proper mechanism to detect the borrower’s likelihood to pay back or default, this is risk-based lending.
“Talking digital” isn’t “acting digital.”
Dissatisfied customers will tell you that manual loan processing is a critical pain point in the cooperative industry. Perhaps the situation is even a perfect foundation for an automated process. Loan officers shouldn’t spend hours verifying or analyzing time-consuming information.
That’s why NLS Tech Solutions is keen on providing a loan origination system — the Tera Credit Management System.
How Can Tera CMS Break the Cycle of Manual Loan Processing?
From day one to the end of the cycle: the system supports the entire lending process, from on-boarding to activating the loan account, with streamlined, automated processing.
Loan Process Flow: this allows real-time monitoring of each loan application, capturing all the applicant’s information such as biodata, collateral security income details, automatic document upload, and workload handling.
Most importantly, the system facilitates the integration of internal risk scoring as well as external credit scores to provide intelligence on a customer’s probability of loan default.
Another benefit is that the system supports multiple loan products: it allows the addition of any loan process workflow, including hire purchase, personal loan, education loan, mortgage, emergency loan, salary advance, mobile loans etc.
One last but the unique benefit is the system’s ability to support workflows that facilitate loan applications from mobile and internet banking systems, thus offering more convenience.
Aligning with customer preferences gives banks and lenders the three-fold benefits of more productivity, greater profitability, and less risk.
to provide intelligence on a customer’s probability of loan default.
Another benefit is that the system supports multiple loan products: allows addition of any loan process workflow, including hire purchase, personal loan, education loan, mortgage, emergency loan, salary advance, mobile loans etc.
One last but unique benefit is the system’s ability to support workflows that facilitate loan applications from mobile and internet banking systems, thus offering more convenience.
Aligning with customer preferences gives banks and lenders the three-fold benefits of more productivity, greater profitability, and less risk.
Article by NLS Tech Solutions Limited
About NLS
NLS Tech Solutions is a Nairobi-based, next-generation global technology company delivering holistic technology services across banking industry verticals, Microfinance institutions and Saccos in Kenya and beyond. NLS revolutionizes the world of technology with unique software solutions — on-premise and cloud-native API led Integration, counter Fraud management systems, Credit Scoring engine, loan origination, Reconciliation and Omni-channel-based applications — built on over a decade of innovation.
To learn more about NLS, visit www.nlsbanking.com
