A solution for retail banking – Loan origination software

The business of loans has undergone significant change owing to the financial crisis and emergence of non-banking entities paving way for people’s money reaching borrowers at a much lower cost and with lesser hassles. Advancing technology and changing customer preferences are driving significant changes in Banking interactions. Banks need to continuously adapt and increasingly adopt technology to simplify lending to enhance reach and foster customer loyalty.

With the dynamic market conditions & ever changing regulatory compliances, a robust intuitive technology for retail lending has translated into a need. To gratify the need, financial institutions are seeking solutions with the most adaptable architecture, one which can be configured for today and can adapt in the future. A perfect loan origination software can be one of the ideal solution to make retail banking more efficient.

What is LOS and how it works best with retail banking

The Loan Origination System (LOS) is developed specially to support the loan application processing needs of banks and financial institutions. It employs workflow technology to control and monitor the various work steps in the loan processing and uses digital imaging technology to reduce the delays and inefficiencies in handling paper documents.

The most essential feature of LOS is its Loan Application Processing Workflow. Each loan application is monitored from the time it is entered into the system, and tracked through the various work steps of credit review and approval process. LOS allows these work steps to be performed in different locations while maintaining control of the flow and making sure no required steps are being missed. LOS helps banks become more agile to be competitive; it helps them meet service levels without compromise on cost, thus delivering substantial return-on-investment.

Key benefits

A perfectly built LOS can simplify the complete credit lifecycle across retail and commercial loans.

Lower Operating Costs:

  • Shorten origination processes through the use of automation, document management and workflow
  • Eliminate re-keying of data through an integrated, end-to-end origination process based upon a single system of record
  • Enforce underwriting rules, procedures and document requirements

Reporting:

  • Gain real-time access to relationship and loan information to increase transparency and visibility into the loan origination process.

Process Efficiency:

  • Increase process efficiency through product, entity and collateral specific automation, workflows, document management and scorecards.

Portfolio Management:

  • Manage customer during the life of the loan – covenants, annual reviews, manages changes in signatures, etc.

End-to-end Origination Solution:

  • Full end-to-end loan origination including application capture, credit approval, auto-decisioning, loan verification, funding, booking and loan administration

How Insight Consultants can help you to maintain a competitive advantage in the loan cycle management?

Achieving efficiency in loan life cycle management has been a challenge.  Insight Consultants sets a milestone in its journey of technological leadership by successfully developing a flagship Loan Origination Software CreditCore’, for its client 3530 Technologies. CreditCore is a full functioning, completely cloud hosted web based application which ensure a better experience to its users. CreditCore supports decisions across the entire retail lending lifecycle by automating origination and decisioning workflows, assesses credit risks, calculating pricings and manages the integration with third party data providers. CC is very much adaptable and responsive to the extent that organizations can independently run most of the changes without too much dependency on us.

We know that the Banking processes, as well as, the information needed are unique. Compliance is stringent and that the needs of bankers are different. We understand that one size does not fit all and each LOS brings with it, its own set of “quirks”. Each “Off the Shelf” solution will not fully meet the needs of the customer. So, we will collaborate on the best solution that will work best for your business.

The ever-changing, heavily-regulated, and competitive landscape of the mortgage sector demands solutions that are highly flexible and will provide organisations with the kind of operational agility required to not only achieve business objectives, but also ensure regulatory compliance. At Insight Consultants, we recognise and understand the challenges the mortgage industry faces, and we harness our technical expertise and industry experience to build and maintain next-generation lending platforms and business solutions across the mortgage lending life cycle. Our in-depth mortgage industry experience helps us to craft flexible solutions that keep up with industry trends and organisational objectives.

We have technical expertise in building cutting-edge software applications for both small mortgage lenders and medium financial product companies, which uniquely positions us to help deliver desired results.  We look at a client’s business problem in a systematic manner that eventually gives both, Insight Consultants and the client, a clear view of what’s required and why, what needs to be done about it, and how its impact in your organisation can be measured for success. We help you get a sense of your business, through Radical Rooting, our home-grown approach to help businesses place premium on the future value of a solution or idea before counting costs.

Reach out to us to maintain a competitive advantage in the loan cycle management.

Need for automation in Loan Origination System

Loan Origination is one of the core processes of financial firms to streamline their loan processing cycle.  An automated loan origination solution allows the lending organizations to close more qualified loans faster with improved operational efficiency. It virtually eliminates the tedious sorting of both paper and electronic files and dramatically minimizes the costly manual data entry.

A well-tuned loan origination process can affect the firms in many positive ways. With the dynamic market conditions & ever changing regulatory compliances, a robust intuitive technology for retail lending has translated into a need.  Advancing technology and changing customer preferences are driving significant changes in interactions. Firms need to continuously adapt and increasingly adopt technology to simplify lending to enhance reach and foster customer loyalty.

Often the manual processing of loans challenges lenders, creating spiraling labor costs and backlogs of files preventing loans from closing on schedule. This translates into loss of business to competition. For this reason, many financial institutions are automating their lending processes, covering the entire loan life cycle – from loan origination through loan application process, risk assessment, decision-making, monitoring, and management control of approved loans.

Benefits of  an automated loan processing system

  • Provide a better user experience to improve the speed and accuracy of loan applications
  • Process a larger number of loan applications with existing resources
  • Eliminate sources of human error for faster, better-quality evaluation decisions
  • Establish predictable, repeatable, and auditable processes that support compliance
  • Reduce delays and costs associated with paper processes
  • Analyze process and loan performance with the goal of continually improving efficiency and profitability

Insight Consultants Loan Origination Solution

Insight Consultant’s, end-to-end loan origination solution offer a multitude of solution accelerators, which ensure faster reaction to complex market solutions. We successfully developed an end-to-end loan origination system for a financial sector start-up. Client was looking  a scalable, fully automated and integrated loan origination system in place in the shortest time. While there were scores of software products catering to businesses like this, they were all piecemeal and disparate. We developed a customized, cloud hosted, web based, highly configurable, cross platform loan origination system that helped our client set new standards of speed and cost efficiency in the sector.  

Benefits of our solution

  • Highly customizable
  • User friendly interface
  • Highly configurable admin section
  • Fully automated decision engine
  • Integrated to 3 major credit bureaus
  • Extensive configurable dashboard
  • Integrated with recommended -third party services
  • Integrated with doc prep system
  • Provides automatic and manual notification system
  • Automate the entirety of lending disclosure process
  • Provides a platform to help banks meet their SLAs on loan origination process

Our solution is entirely scalable and can be deployed in your existing system for meeting compliance requirements in a rapidly changing environment. It supports decisions across the entire retail lending life -cycle by automating origination and decisioning workflows, assesses credit risks, calculating pricing and manages the integration with third party data providers. Insight’s LOS architecture consists of highly parallelized, rules-driven mini workflows, interwoven with a Document Management System to specific activities in the business workflow. It has a rich interactive interface with real-time reporting dashboards, which provide instant data across regions, branches, divisions, and organizations.

Contact Us to  know  more about our loan origination solutions.

CreditCore, a compliance-ensuring Loan Origination Software – Case Study

 

loan origination softwareSuccessful  development of a compliance-ensuring  Loan Origination Software ‘CreditCore’, for client 3530 Technologies, to maintain a competitive advantage in the fast-moving corporate loan market.

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 Client Overview

3530 Technologies is a financial institution headquartered in Texas, United States provides integrated technological solutions and services to banks and financial institutions across US.

Problem

Looking for a Loan Origination Software to overcome the flaws in the existing loan origination system and to maintain a competitive advantage in the fast-moving corporate loan market

Solution

To develop a cloud hosted, web based, highly configurable, cross platform loan origination service provider that can fill the gap of the existing LOS flaws.

Result

Successful in developing a full functioning cloud hosted loan origination solution, ‘CREDITCORE’, which helped 3530 Technologies to raise the bar in their loan origination system.

Business Task:

Designing a loan origination solution that can fill the gap of the existing loan origination provider flaws.

 Business Solution:

Initially Insight Consultant started with an assessment of the client’s needs. After discussing with stakeholders and analyzing several other loan origination software, successful in identifying the right solution for 3530 Technologies. We identified the new system must reduce the time to complete the loan application while increasing the integrity of credit decision and loan disclosures.

 We decided, the new system should be:

  • Cloud hosted, for better productivity with less resources and reduced cost
  • Web based application to ensure better user experience
  • Readily deployable with a user-friendly platform
  • Total mobility-enabling users to access anytime anywhere from any device
  • Highly configurable admin section to configure all compliance related policies and bank specific policies.

 The whole development process was divided into 5 parts

  • All the broad features of CreditCore where grouped into releases based on associations between features and need of the market.
  • We had extensive discussions with experts in the field of each feature to chalk out the details of those features. (These discussions helped us in identifying -Processes that they do manually which could be automated in CreditCore and which allows the faster closure of qualified loans with improved operational efficiency and areas of assistance which is still not served by any of the existing loan origination systems
  • Further to the discussions, we detailed out the features by way of prototypes
  • We also created a development and release schedule for each of the releases
  • After each release, the actual features in the loan origination software were vetted by experts in the loan departments of banks and financial institutions

During these process, we also made sure recent developments and new compliance rules for eg: Loan Estimate from CFPB in loan origination were included in the new system. Finally, the flagship loan origination software,” CreditCore” was handed over to 3530 Technologies to maintain a competitive advantage in the fast-moving corporate loan market. Insight Consultants serves as the technology partner in providing continuous support to 3530 Technologies in implementing the future phases of CreditCore

 Benefits of Credit Core (CC):

  • CC is a highly customizable, that helps mortgage lenders streamline their business processes and increase efficiency
  • An intuitive, user-friendly interface simplify the application process and making it easy to train new employees
  • It’s highly configurable admin section allows to configure all compliance related policies and bank specific policies
  • The fully automated decision engine enables the automatic approval/rejection of applications
  • Maintain rigid standards for compliance with customizable controls
  • Recommender System-CC will recommend, and the user can take the decision
  • CC is integrated to all the three major credit bureaus (Experian, Equifax, Transunion), which helps to retrieve the credit history of the applicant
  • CC inherently automate the entirety of lending disclosure process while adhering to the CFPB regulations and document formats.
  • Integration with recommended third-party services for certain disclosures.
  • CC helps in depth analysis of credit reports using various financial characteristics defined in Credit Core.
  • Integration with doc prep systems to enable generation of post approval legal disclosures
  • CC provides automatic and manual notification system to users associated with a loan request
  • CC provides a platform to help banks meet their SLAs on loan origination process
  • CC provides an extensive and configurable dashboard.

Insight Consultant LOS Solution

Achieving efficiency in loan life cycle management has been a challenge and our loan origination software (LOS) addresses it by automating and streamlining the entire origination process.

Our technology solutions offer a multitude of solution accelerators, which ensure faster reaction to complex market solutions. The loan origination system is entirely scalable and can be deployed in your existing system for meeting compliance requirements in a rapidly changing environment. Insight’s LOS architecture consists of highly parallelized, rules-driven mini workflows, interwoven with a Document Management System to specific activities in the business workflow. It has a rich interactive interface with real-time reporting dashboards, which provide instant data across regions, branches, divisions, and organizations.

 About Insight Consultants

Insight Consultants (subsidiary of Stylus Systems) is in the business of transforming enterprises and impacting lives through information technology based solutions and by delivering services ethically. We have achieved expertise in developing and using internet based technologies and solutions to bring the advantages of the global marketplace to small and medium business enterprises worldwide, thereby helping them take their offerings to market faster, and operate better, smarter, and more profitably.

The ever-changing, heavily-regulated, and competitive landscape of the mortgage sector demands solutions that are highly flexible and will provide organizations with the kind of operational agility required to not only achieve business objectives, but also ensure regulatory compliance. At Insight Consultants, we recognize and understand the challenges the mortgage industry faces, and we harness our technical expertise and industry experience to build and maintain next-generation lending platforms and business solutions across the mortgage lending life cycle. Our in-depth mortgage industry experience helps us to craft flexible solutions that keep up with industry trends and organizational objectives.

We have technical expertise in building innovative software applications for both small mortgage lenders and medium financial product companies, which uniquely positions us to help deliver desired results.  We look at a client’s business problem in a systematic manner that eventually gives both, Insight Consultants and the client, a clear view of what’s required and why, what needs to be done about it, and how its impact in your organization can be measured for success. We help you get a sense of your business, through Radical Rooting, our home-grown approach to help businesses place premium on the future value of a solution or idea before counting costs.

Testimonial:    

Troy Anderson (CEO 3530 Technologies)

3530 has had a relationship with Insight Consultants for over 2 years and does not consider them a “vendor” or “contractor” as they are much, much more than that. Insight Consultants is a group of highly-valued colleagues working towards the same common goals as 3530 which can only be achieved through mutual trust, hard work and getting out of our respective comfort zones to learn new things. Any concerns we initially had with outsourcing a major, on-going project were quickly alleviated after witnessing the Insight group’s passion, work ethic and attention to detail. I would strongly recommend Insight to anyone considering any size of development project.                                                                              

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