9 basic steps to automate the credit process in a few clicks

Nowadays, the complexity of the lending process is one of the most debatable issues in the banking sector with high customer preferences and rising compliance standards.

On the one hand, customers always want fast and smooth access to a variety of loan services at any comfortable time and place.  On the other hand, banks compete for emerging technologies to meet market needs and satisfy their clients. The automation of business processes has a positive effect due to the multiple accelerations of processes within the bank, which reduces operating costs. Noticeably, the positive effects of automation processes can be observed within the loan pipeline. Before automation, the lending process could take one or two weeks, however, when the automation introduced crediting takes about 30 minutes from the client’s appeal through various service channels to the issuing of a loan. A similar condition occurs with a statement of account status for a client. Before automation, data was collected manually for about three days, after time an automation system has implied the process of data collection takes a few minutes. 

We know how to simplify and improve the manual credit process by replacing it with an automated one: no more paperwork, calls, physical visits, cash transactions. 

Consider seven basic steps how the automation of bank loans works: 

  1. Registration 

Digital registration forms on mobile apps promote the rapid acquisition of data from users including the scans of documents, biometric data, and connection with third-party services. 

  1. Verification 

Use of APIs for authentication and one-time verification process provide customers with fast access to all of the banking services including loans. 

  1. Application of loans 

A simple and easy way to apply for a loan is through the mobile application, website or USSD request. 

  1. Loan assessment 

Automated credit scoring is achieved through the analysis of data points and digital models; therefore, the results of assessment predict scenarios based on risk analysis. Moreover, the system could be complemented with third-party tools. 

  1. Credit approval 

The system of automatic approvals is available at any time 24/7. Furthermore, the program allows manual credit confirmation for special cases. 

  1. Loan issuance 

The loan amount is credited to the client’s account automatically after the bank’s confirmation. The deal closes instantly by wire transfer. It is important to note that credit can be issued through individual settings for special cases. 

  1. Credit tracking 

The system automatically updates the data and sends notifications and alerts to clients. Banks can create custom chains of messages such as debt reporting or loan updates. 

  1. Loan repayment 

Transactions pass through a fast web or mobile application. 

  1. Loan recovery 

The system reconciles payment info automatically. As a result, customer loan is restored at the same time. By adopting OutSystems app development, any financial institution benefits from: 

  • Boosting efficiency through the integration of multiple banking systems into one with real-time updates;
  • Increasing productivity of workers by using the fast functionality to focus on the client’s needs;
  • Controlling business risks with timely system reports and alerts;
  • Enhanced flexibility by rapid adaptation to the growing compliance and customer preferences;
  • Increasing outcome by getting high client satisfaction and empowering the company’s managers to focus on selling services; 
  • Higher competitiveness by fast and smooth operations and implementation of the newest technological solutions. 

Technology lies in a low-code platform that allows our customers to get not only flexible custom development but also the full-fledged individual platform. The platform is based on the latest machine learning algorithms and open source technologies allowing not to rent a solution, but to completely own it. 

Our team uses only the best and proven international practices in the work. Whereas, OutSystems experts help institutions to solve current issues as well as plan further business development. As a result, automation of lending processes will significantly simplify and speed up its processes from the submitting application of a potential client to the final issuing a loan. Consequently, automation would lead to an increase in the number of loans issued and, therefore, to the growth of banking profits. 

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Suggested bySergei Artimenia - Solutions Director

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