Below you'll find a list of all posts that have been categorized as “defi INSIGHT”
Business process automation (BPA) replaces inconsistently-executed manual activities with consistently-executed workflows and decisions. The result for financial services providers: Lower processing costs. Banks evaluating business process automation companies should look for the following capabilities to improve lending efficiency.
According to the American Bankers Association, only half of large banks and 38% of small banks currently use an online or digital loan origination channel. Commercial lending software makes it easy to quickly calculate loan periods, track collateral, and estimate cash flow.
Big data has transformed businesses in every industry. Banks now use data acquired from nearly every step of the loan origination process. The reward: Detailed insight that can be applied to continuously improve lending efficiency and profitability.
Business process automation has helped the banking industry bring efficiency to high-volume processes. It brings speed and accuracy to account openings and closures, credit card applications, and loan originations. Recent fintech innovations are transforming the loan origination process with lower processing costs, better quality, and consistency in lending decisions—and lower risk.
It’s an exciting time to be in the lending industry. Major technological advances in loan origination system software have made it easier than ever to process loan applications and automate decisioning. Computers are now doing most of the tedious work, saving organizations hours of potentially wasted time and countless resources.
Lenders looking for an LOS often start by checking loan origination system market share. That can reveal industry leaders and niche players. You’ll get a high-level overview of software functionality and capabilities, and you might get some insight into each vendor’s market strategy and focus. It’s not a bad approach, but it does have some pros and cons.
The lending industry is evolving. Quickly.
Innovative new loan origination system (LOS) features are helping lenders stay ahead, even in competitive industries like auto and real estate lending. Sophisticated technology takes the guesswork out of the loan structuring process, so lenders can make better decisions and assess risk accurately.
Mentioned in the context of a technology discussion, disruption invariably means innovation. The world of finance is undergoing disruption, and as financial services organizations evaluate and adopt the latest fintech innovations, both the organizations and their customers are realizing the benefits.
For many lenders, credit risk management depends on years of experience. Their credit risk expertise is a mix of shrewd loan portfolio analysis and an innate intuition about borrower risk. While that may have worked in the past, credit risk management is shifting from human judgment to automated, data-driven lending decisions that assess credit risk far more accurately.
Advancements in fintech are transforming loan origination into an increasingly-automated process. Loan applications are now often turned into booked loans with little to no intervention from an underwriter. Underlying this automation is a set of loan origination business rules.
Automation is continually improving auto lending process efficiency, along with the quality and consistency of lending decisions. Replacing manual, mundane tasks and decisions with workflows and rules accelerates loan origination and enforces consistent decisions. Automation lets underwriters focus on activities that truly require their expertise.
Fraud has many faces. Auto dealer loan fraud isn’t as frequent as income, employment, or identity fraud by individuals and fraud cartels. Still, an application from a less-than-honest dealer can show up in the underwriting queue anytime.
