Digital Lending Report, November 2018, by the Boston Consulting Group (BCG) projects that with the introduction and penetration of India Stack (UPI) within the banking industry, 50% of the loan seekers with internet access tend to shop for loans online. In fact, out of the entire population, there are about 55% of consumers with a digital footprint out of which an astonishing 23% purchase retail loans digitally today. Loan ticket sizes influenced digitally are found to be marginally higher by 4% within the case of SMEs. In short, the report concludes that Indian Digital Lending may be a $1 Trillion Opportunity over subsequent 5 years!
One of the main factors that facilitate such humongous growth is that technology has allowed for a discount of your time in processing loans. People not need to await months to urge credit. The report studies lending models of varied companies, and therefore the average time of processing an application and disbursing loans, when everything is completed digitally, in only 10 minutes!
With such concrete data, it becomes absolute that each lending company must go digital. It all starts with identifying a reliable loan management software partner which will understand the nuances of your business, and blend in seamlessly together with your existing operations.
Here are a couple of filters that any software you're considering for your business must undergo -
Though technology has become sophisticated, one shoe size cannot fit all. The software should be ready to customize itself to cater to the peculiar requirements of your business operations, and moreover the precise needs of all of your consumer segments.
The software should command the smallest amount coding expertise from your end. It must encompass modern tech-stack like API gateway, SOA Enabling, etc. and possess a cloud-based infrastructure for utmost cybersecurity. It should be ready to accommodate futuristic technology like open-bank architecture and update itself without hampering existing operations.
It should be ready to pilot new products/services during a relaxed environment. There has got to be an outlined structure of introducing and implementing new products, services, or processes with minimal effort and time.
The software should be legally-compliant in the least stages of the lending cycle. Implementing appropriate taxes, interest rates, invoice discounting, and other norms as directed by the RBI should be automated.
an honest loan management software with all its high-end integrations at the back-end, shouldn’t be complicated to be employed by the workers and therefore the consumers. A neat lag-free and easy-to-understand user experience and interface are what the software should provide.
The software should be ready to fulfil not just current business requirements i.e. the short term goals, but also help the business work upon their future vision with data-backed reporting and intelligent analysis.
The software should deploy AI to automate the bulk of the manual tasks at a lower cost. Automation will make the whole lending cycle secure by eliminating the scope of errors and frauds. The AI-backed analysis will help the corporate understand its current and future growth prospects.
Even though automation will lookout of maximum manual processes, you continue to need people to handle the general management. The software should be ready to easily introduce, modify, or change the hierarchy and permit for a confusion-free automated delegation of responsibility at each stage of the cycle.
Accounting has always been a tedious affair. However, with improved lending operations, if the software offers automated accounting solutions, and permit for seamless integration of other accounting services that a corporation might use, it might cause a transparent and error-free accounting process.
The software must offer scope to implement automated rules for individual products, services, and stages of the lending cycle through a rule engine which will cause a risk-free efficient workflow without the necessity to constantly monitor the operations.
Though debt recovery and collection is that the end of a lending cycle, it involves various sub-processes in itself which will be completely automated. From sending personalized reminders to customers about due dates to geo tagging to accepting payments digitally and raising receipts, everything should be automated and controlled by a loan management software.
Even with all its merits, the software might face issues and you would possibly need assistance with it. The software company should have a talented and able customer service that's quick to reply to your queries and resolve them.
Now once you start trying to find a reliable loan management software partner, we hope it passes through all the filters we laid out. By the way, we in the least Cloud offer a comprehensive full-suite lending solution that delivers on all of the above features and far more.
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