Why a Full-fledged Loan Origination System is essential for Co-operative Banks?
In almost all banking applications used by co-operative banks, Lending Process starts with Loan Account Opening. A good ‘Loan Origination System’ with end-to-end automation solution to automate the Loan Origination Process which results into approval of loans is not yet available to co-operative banks.
Today, the co-operative banks are ample funds for lending BUT the biggest challenge is to find a genuine loan customer. The financial position of bank is greatly affected turning of loans into bad loans. The inability of bank to screen out bad customers is mostly due to un-organised and non-automated loan approval process.
A good ‘Loan Origination System’ shall ensure uniformity and operational efficiency in Loan Approval Process. It shall facilitate:
- Automation of Credit Department Process; Correct documentation of every loan case.
- Online & centralized access to Core Teams with Graphical User Interface and Dashboards.
- Calculation of Credit score for each loan application.
- Quick responses to loan applications for approvals.
- Uniform credit appraisal techniques and processes across all credit officers.
- Centralised configuration of Loan Schemes And checklists of documents.
- Scanning, storage and quick retrieval of Loan Case related documents.
- Loan Applicant can track the Loan Application Online on PC or Smartphone.
- Standardisation of Templates for Sanction Letter, Agreements.
- Online role based access to external agencies like valuer, lawyer, architect for quick responses.
- If Loans are approved with exceptions, the exceptions are documented.
- Complete work flow of hierarchical authorisations.
- Online Integration with CIBIL system and e-Kyc system for identifying online credit score and online KYC of the applicant.
- Useful for appointing dealerships with online access for dealership to Bank's LOS system
- Uniformity in applying of the Loan Appraisal related Charges.
- Integration with CBS to avoid duplication of entries.
- MIS, Dashboards to management for the Product wise status of loan applications.
LOS shall ensure business benefits to bank by reducing TAT which is essential for acquiring better loan applicants AND reducing the risk of bad loans and better recovery prospects.
Trust Systems & Software offers full-fledged online, browser based Loan Origination System assuring all above technology, operational and business benefits to the co-operative banks. For online demonstration and pricing of TrustLOS system, pls request a call back with TrustBankCBS Presales team.