Blogs
Smart Lending
Updated On : September 2017The word Smart once meant fashionable, stylish, chic, modish and so on. Normally it was used as an attribute to humans, and in some cases to pets.
"Smart" of late has outgrown its original definition. We have now, smart buildings, smart cities, smart phones etc., Business processes that involve a set of predefined actions or events automated in workflows also deserve a precursor "Smart". Smart solutions are not simply fancy statements. Applications on lending, trading, health care are being developed as a smart solution.
The BFSI sector is highly process driven and efforts have been put in place to address efficiency,accuracy and security of financial transactions, that demand very stringent regulatory controls and MIS through adopting Core Banking Solutions.
Core banking solutions, enabled customers to do smart banking. More customer centric approaches are required in the portfolios of borrowing and lending of banks. Now the banks are more focussed in lending to improve their spread. The actual lending process goes through a series of events. To cite a few, customer capture, credit appraisal, KYC norms, collateral management, inspection, disbursement, monitoring asset quality, repayment, recovery, and closure of accounts.
The lending systems in vogue are partly automated, controlled in disparate systems and partly manual. For years, lenders have employed relatively static, tedious and highly complex lending models that lacked focus on consumer interest, experience, preferences and priorities.
In this, context, smart lending is a natural corollary, given that core banking solutions and payment systems are already in place. Smarter, faster, agile commercial lending: the future is all-in-one
Smart lending solutions at the centre seems to be artificial intelligence based new software algorithms that price and rate individual as well as business credit. Moreover, thanks to digitalization, paperless (digital) processing seems to have eliminated the slow and tedious pushing of paper between retailer, borrower and lender.
Take a peek at the features of smart lending solutions.
Desirable high level requirements.
General features
Web-based platform- data centre or cloud hosted. Integration with CRM
Comprehensive data capture for all application types Tightly integrated single point of credit assessment Enable lenders to streamline and holistically improve their loan processing capability for all commercial loan segments, including
- Large Corporates
- Commercial and Industrial
- Small and Medium-sized Enterprises
Data flow- to and from core banking Query engine and report writer Integration with payment systems.
Desirable Modular components
Loan originating module
- Instant Duplicate Check
- Rules-driven Tailor-made Document Checklists
- Credit Reports and Eligibility check
- End-to-End Straight-Through Processing (STP)
Credit risk and limit management
- End-to-end workflow for credit requests and credit applications
- Flexibility to maintain View/Maintain borrower and Group
- Comprehensive Database for All Counterparties
- Parameter Maintenance
- Limit Allocation
Collateral & Limit management module
- Collateral Maintenance
- Complete Documentation Workflow
- Security Completion Certificate (SCC)
- Single View of Customer (SVC) Limits
- Data Warehouse Integration
Collection and recovery
- Queue Management
- Call Management
- Field Management
- Collateral Management
- Document Generator
- MIS Reports
- Performance and Incentives Management
- User Administration
- Collection & Recovery Integration
Stressed assets settlement
- Waivers and write off
- Suit file and follow up
- Securitisation
- Factorisation
The next challenge would be to address inclusiveness. Millions cannot reach credit owing to trust deficit created by lack of credit scores, no collaterals and no bank accounts. Recently, in Kenya, a mobile based credit lending application Mkopo Rahisi (Wall of Love) owned by InVenture,Kenya has made waves in micro lending. With the user's permission, InVenture collects data from the applicant's mobile device to verify identity, build financial, behavioural, and social characteristics for proprietary algorithm, and to customise the loan terms to his or her unique circumstances. So far, it has been downloaded over 130,000 times, has more than 50,000 active customers and has disbursed 120,000 loans to middle and low-income Kenyans.
Now that's smart!!
Refer : https://www.youtube.com/watch?v=kSR8G8mfp84
Leave Comments :
Latest Blog
-
How IoT is changing the world and influencing Banks and Financial InstitutionsUpdated On : April 2018 -
The Role of Design Thinking in Banking & Finance IndustryUpdated On : March 2018 -
The Drive for a Modern Data WarehousingUpdated On : March 2018 -
5 ways technology can help NBFCs growUpdated On : March 2018
CLIENT SPEAK
-
We have successfully made Nelito's Fincraft Software for NBFC live in early March for LOS,LMS and Sanjiv Khalkho, Arijit Chakraborty with his team have been very instrumental in making this software live . I would like to appreciate on the turnaround time during the go live phase of the team in getting some of our key requirements done and helping our users to use the software for recording and disbursing all the sales from the software.
In technology side I would like to praise Pramod Navale and Ganesh Khetmalis for in depth knowledge of the product and their technical skills is outstanding. Looking forward for the continued relationship for our next release and whole of 2018.
Prateek P Katyal | CTO
WheelsEMI Pvt. Ltd -
"For a Bank of our size, this system suffices and is very cost effective. Almost all of the bank’s activities run on the one system. Nelito constitutes a partner more than a supplier and the relationship includes provision of the bank’s underlying technology as well as its Fincraft range of applications."
Chairman
The Nainital Bank Ltd. -
"The best mix of functionality and technological support and our vision of “Cash Less and Paper Less” work environment for Sonata has come true with our technological partner Nelito. I highly recommend FinCraft Core Microfinance platform and especially integrations with a number of third party services."
IT Head
Sonata Finance Pvt. Ltd. -
"Nelito has successfully deployed the Online Reporting and Management Information System (ORMIS), which has streamlined the reporting process and their analysis. Its team is responsive, provided satisfactory support and has sound expertise to deliver time sensitive & critical projects. Exemplary team work."
Deputy General Manager (IT Department)
National Housing Bank -
CBS
"We are happy to use FinCraft Data Archival & Retrieval solution from Nelito Systems; it has given huge ROI in terms of saving revenue by retiring legacy applications. We get all desired reports in a timely manner from the solution."
Assistant General Manager (CBS)
United Bank of India -
CBS
"Nelito is known for its exemplary services to the users at all times. Your team provides excellent service and they are pro-active in providing solutions."
Chief Manager (SWIFT)
Indian Overseas Bank -
CBS
"On the whole a professional and capable and competent team. Providing solutions adapted to clientele updated on technology front."
Principal secretary Department of Labour
Govt. of Sikkim -
Custom Application Development testimonial
"Proactive & professionally supportive, technically skilled team."
General Manager
Federal Bank -
CBS
"Fincraft CBS software & Doorstep Banking Solution helps our society’s functionality towards digitalization & paperless working. It reduces our manpower requirement and workload, also gives us fast reporting for our institution as and when required."
Chairman
Mahavir credit coop society -
CBS
Exemplary relationship set by Nelito’s PCS team which helps project to grow vertically. We have always been very impressed with the quality of service we have received from Nelito. They are reliable efficient professional and above all truthful. This alone sets them out from much of their competition.
Project Director
TCS -
CBS
"E-district Manipur project was undertaken and successfully implemented by Nelito in a record time. The online services offered under this project has made a marked difference in the quality of life of the citizens and is taking the state towards a digital Manipur."
Additional Director (IT)
Govt. of Manipur -
DGM
"On 20th of November 2016 our bank data was migrated to FinCraft and we have completed one year successfully in FinCraft. So we thank all the team members of both IFTAS and Nelito for your great co-operation in this success. We expect more & more co-operation in implementing new technologies in banking sector from your side in future."
M V Kumar | CEO
Kempegowda Bank -
DGM
"My bank is working with Nelito from the last about 9 Years and the services provided by the company may prolong our association."
Sikander Gupta | CEO
The Jammu Central Co-op Bank Ltd. -
DGM
"The Bank is associated with M/S Nelito since 2002. M/S Nelito Systems Ltd has been our CBS vendor since 2009. The Products, quality of service offered by them are excellent. They have a very good support team and are trained enough for handling any type of situation."
D K Kandpal | Vice President (IT)
Nainital Bank -
DGM
"We appreciate your local team who continuously supported & assisted our team to meet the goal."
Nagendra Nath Sinha | Principal Secretary IT
Government of Jharkhand, Ranchi -
DGM
"Knowledge and service provided to the bank is beyond expectation. And we would definitely engage and recommend solution to others."
Rachelle F. Rivas | IT Project Manager (Senior Manager)
Bank of the Philippine Islands (BPI) -
DGM
"As Vendor strict adherence to process & procedures. Risk Mitigates in Place. Flexible to customer requirements."
Dinesh Negi | VP (Clg)
DCB Bank Ltd -
DGM
"Bank has implemented CBS of Nelito Ltd in the year 2008-09 in phase manner. Also integrated RTGS/NEFT, CTS, MMS etc. which help us in smooth automation of banking operation."
K.T. Wadia | CEO
The Sutex Co-op Bank Ltd -
DGM
"Experience during development of Rating Engine Module has been good in the context of commitment to meet timelines & lot of hard work has been put by Nelito's team."
Ashutosh Satsangi | VP-Operations
SMERA -
DGM
"Everything was successfully implemented and tested. The implementation was professionally done in a very efficient and cooperative manner. Migration was very smooth."
Frithjof Ramb | Vice President
SBI- Frankfurt, Germany -
DGM
"Nelito and its team has always been supportive and efficient in achieving the tasks set up by the Dept. Apps developed by the software engineers for the Public Health Dept. have proved to be excellent among the top competitors and have been acclaimed for its effective service delivery to the end user at the grass root level which is the foremost object of any Govt. organization. Many thanks for the sincere efforts."
Sanjay Kamlakar | Under Secretary to GoM
Government of Maharashtra -
DGM
"We appreciate Nelito team who were always on time and responsive to our needs and changing ideas. They worked efficiently from the project inception to its completion in a timely and professional manner. Their understanding of this space has been invaluable to the success and launch of 'PMAY CLSS' app."
Susanta K. Padhi | DGM
National Housing Bank
"Nelito has Good knowledge of industry. Good customer orientation. They were Flexible and Open to new ideas and suggestions."
Comments :