Read, how a commercial vehicle financing company using a loan origination and credit appraisal portal speed up the process by 70%.
Our client is a subsidiary of a global leader in the commercial and premium passenger vehicle manufacturing industry. As a commercial vehicle financing company, they provide loans and lease products that are customized to meet the unique needs of their customers for truck finance, equipment finance, and insurance. Their financial solutions are available in over 50 markets spanning Asia/Pacific, Europe, the Middle East/Africa, North America, and South America.
The sales and credit team hand-operated the entire loan process, including loan origination and underwriting. They used to go on-site visits for processes such as customer verification and document collection, which required face-to-face interaction with customers.
However, this process was time-consuming and could take days or even weeks, which caused delays in subsequent processes. Additionally, communication between the field team and the in-house team during the field investigation was inefficient.
The client's sales and credit team faced various challenges because of manual loan origination and processing.
• Duplicated efforts were being made due to the lack of automation, leading to inefficiencies.
• The paper-based and time-consuming KYC process added further delays to the loan processing timeline.
• Bureau reports took longer to be processed and analyzed, affecting the overall efficiency of the credit evaluation process.
• Increased risk of errors and inaccuracies in credit evaluation, posing potential risks to the business.
• Ineffective communication during in-person credit verification with the sales team, thus creating hurdles in the loan processing workflow.
It was clear that a more streamlined and automated approach was needed to address these challenges and optimize the loan processing operations.
Softude’s complete loan origination solution transformed this commercial vehicle financing company. The solution has AI/ML capabilities which cut down the several man-hours of sales and credit teams and also streamlined the different stages of vehicle financing process at one single platform.
Our solution automated the following stages of loan credit workflow, thus saving a lot of time for the client’s team.
1. Collection of information and supporting documents of loan applicants, co-applicants, and their guarantors.
2. Sharing the gathered information with the sales and credit team for further process.
3. Verifying the applicants’ documents through third-party APIs, checking their credit history, and fetching credit bureau reports
4. Documenting the applicants’ information in several formats such as PDF
Dashboard: A sophisticated digital dashboard for valuable insights on leads and cases for informed decision-making.
Smooth onboarding: The onboarding process for loan applicants, co-applicants, and guarantors is made seamless with the portal.
Digital KYC: Know Your Customer (KYC) of applicants’ documents is done with instant validation through third-party APIs.
Automatic credit evaluation system: A technology-driven solution that utilizes credit scoring, machine learning algorithms, and data analysis to assess the creditworthiness of loan applicants, providing quick and accurate credit evaluations without human intervention.
Integration with credit bureaus: The portal is integrated with the CIBIL and CRIF and uses AI/ML algorithms to get information about an individual's credit accounts, payment history, outstanding balances, credit inquiries, public records (such as bankruptcies or tax liens), and other relevant financial information.
Built-in chat: To facilitate effective communication between the sales and credit team, a chat feature is incorporated where they can communicate regarding the cases. The feature also gives access to the chat history related to a particular case, thus keeping everyone in the loop.
The loan origination portal was made keeping in mind that the end-users face no challenges while accessing it. Thus, we used the most popular open-source JavaScript framework that has responsible designing capabilities to build dynamic and interactive user interfaces without using bulky codes. It also supports virtual DOM updates enabling efficient rendering and performance optimizations.
React.JS real-time form validation, input handling, and conditional rendering capabilities ensure a smoother user experience in loan application forms.
We utilized Lumen, a PHP micro-framework, in the backend of our loan origination system for faster communications between the various modular components. Its compatibility with React.Js and MySQL for database operations, also made it a preferable option for us. Lumen also has good routing and API handling capabilities that eased the handling of HTTP requests generated at the front end of the portal.
MySQL was our preferred choice for managing the huge database of the client’s customers. It is a very reliable and stable relational database management system and supports ACID (Atomicity, Consistency, Isolation, Durability) properties ensuring there is data integrity and consistency. Another reason to use MySQL is its robust security features that helped secure the sensitive data of applicants.
Implementing our loan origination solution brought significant outcomes for the client.
• 30-40% faster turnaround time in capturing loan inquiries
• 70% faster loan processing than before
• 50% less turnaround time from Pre-lead to the agreement signing stage
• Digital KYC verification on the fly
• Accurate risk assessment of borrowers through AI/ML
• Automated summary with trigger points to detect high-risk customer profiles
• Zero human intervention because of the self-service feature
• Enhanced lead generation, allowing the client to reach out and generate more business
• Improved decision-making on the leads and cases
The automation revolution is reshaping the landscape of modern businesses, offering a plethora of opportunities for growth and success. With the advent of cutting-edge automation software, companies across diverse industries can harness the power of advanced technologies to streamline their operations, drive innovation, and gain a competitive edge.
If your business is still going the traditional way or needs to boost business operations, it's time to upgrade with the technology. Softude is here to help you at every stage of this new journey using emerging technologies to keep you ahead in both, the business and technology landscape. Feel free to connect with us and discuss your business requirements.
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