{"id":22774,"date":"2021-04-29T09:22:00","date_gmt":"2021-04-29T09:22:00","guid":{"rendered":"https:\/\/www.experfy.com\/blog\/how-automation-maximizes-efficiency-of-lending\/"},"modified":"2023-08-23T04:22:52","modified_gmt":"2023-08-23T04:22:52","slug":"how-automation-maximizes-efficiency-of-lending","status":"publish","type":"post","link":"https:\/\/www.experfy.com\/blog\/fintech\/how-automation-maximizes-efficiency-of-lending\/","title":{"rendered":"How Automation Maximizes The Efficiency Of Lending"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"22774\" class=\"elementor elementor-22774\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-b191c1a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b191c1a\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a9f6984\" data-id=\"a9f6984\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4477bc9 elementor-widget elementor-widget-text-editor\" data-id=\"4477bc9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Automation is omnipresent in the industry of finance to the point some business owners consider it just a marketing buzzword. If you ask our opinion, well, we couldn\u2019t disagree more. A legit question arises: but what does it have in store for a lending company? Generally speaking, <a href=\"https:\/\/www.experfy.com\/blog\/fintech\/digital-loan-origination-process-integrity-automation\/\" target=\"_blank\" rel=\"noreferrer noopener\">loan automation systems<\/a> help to get away from the long complex process of approving an application \u2014 something that\u2019s been a major inconvenience for ages. It offers speed to the processing of borrowers\u2019 applications and increases the number of loans issued. Based on the data from the credit bureaus, an automated lending platform checks the credit history of a potential client and discards bogus applications straight away. In other words, it makes out of an ordinary business a credit conveyor.<\/p>\n\n<p>To cut a long story short, by growing the client portfolio with reasonable effort, automation allows lenders to make more money in less time. Surely, it\u2019s just the general idea. In reality, lenders can automate any loan-related steps from A to Z. Here at HES FinTech, as true advocates of loan automation, we use this technology in our projects and regularly cover it in our blog.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a308f85 elementor-widget elementor-widget-heading\" data-id=\"a308f85\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">So what steps of lending can we automate for you?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-37cc7fa elementor-widget elementor-widget-text-editor\" data-id=\"37cc7fa\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><a href=\"https:\/\/hesfintech.com\/blog\/digital-loan-origination\/\" target=\"_blank\" rel=\"noreferrer noopener\">Digital Loan Origination Process: Integrity and Automation<\/a><\/p>\n\n<p><strong>Key Takeaway for Lenders:<\/strong> Data-driven loan origination systems (aka LOSs) are risk officers\u2019 best friends. Through automation, a <a href=\"https:\/\/hesfintech.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">loan management software<\/a> of that type eliminates manual tasks and assists in overcoming a number of traditional lending challenges. Analytical tools of the system provide lenders with an opportunity to offer better customer experience and improve efficiency and loan performance in the long term.<\/p>\n\n<p>The presence of automation at the stage of a loan origination results in:<\/p>\n\n<ul><li>Full compliance with lending regulations<\/li><li>Reduced loan approval time<\/li><li>Elimination of manual loan processes<\/li><li>A faster and more accurate underwriting process<\/li><li>Better customer relationship management<\/li><li>Fraud detection<\/li><li>Diminished risks of data compromise<\/li><\/ul>\n\n<p>Surely, the introduction of an automated loan origination workflow is challenging. It takes time and dedication from both senior management and employees, not to mention it\u2019s costly. But guess what. The competition in the market is tough, and an effective software deployment strategy provides you with an upper hand over your competitors. Sounds interesting? <a href=\"https:\/\/hesfintech.com\/loan-origination-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">Visit our page<\/a> to get the details.<\/p>\n\n<p><a href=\"https:\/\/hesfintech.com\/blog\/how-automation-improves-debt-collection\/\" target=\"_blank\" rel=\"noreferrer noopener\">How Automation Improves the Debt Collection Process<\/a><\/p>\n\n<p><strong>Key Takeaway for Lenders:<\/strong> Automation helps collectors to fine-tune their communication strategies, increase customer satisfaction, and provide fast follow-ups \u2014 an important part of the job. It reduces costs through a better decision-making process, effectively manages problem debts, and increases compliance with corporate policies. In total, the debt collection solution by HES FinTech increases profitability and reduces the collection of overdue debts.<\/p>\n\n<p>The global pandemic demands for <a href=\"https:\/\/www.linkedin.com\/pulse\/ai-debt-collection-calling-mr-innovation-dmitri-koteshov\/\" target=\"_blank\" rel=\"noreferrer noopener\">new approaches<\/a> in the collection industry. Even though the sector still relies on human judgments, automated debt collection software can improve both performance and productivity being non-intrusive in these hard times.<\/p>\n\n<p><a href=\"https:\/\/hesfintech.com\/blog\/how-automation-improves-compliance-in-lending\/\" target=\"_blank\" rel=\"noreferrer noopener\">How Automation Improves Compliance in Lending<\/a><\/p>\n\n<p><strong>Key Takeaway for Lenders:<\/strong> HES FinTech specialists can outline the best approaches in setting up the basics of the KYC\/AML process: authority-matrix-based operations, configurable workflows for various customers, maker-checker decision-making process, and keeping registries of blacklisted individuals or companies.<\/p>\n\n<p>There\u2019s a recurring topic within the lending community: the integration problems with third-party services is the definition of pain. Here at HES FinTech, we believe that the fear of integrations is exaggerated. With over 400 integrations under our hood, we help businesses to do integrations with 3rd parties such as AML lists, terrorist lists, PEP checks, Ministry of Interior data cross-checks, banks, and credit bureau data cross-checks.<\/p>\n\n<p>Data is the foundation of the KYC\/AML procedure. At HES FinTech we firmly believe that data protection is an integral part of the KYC process. We strictly follow globally accepted standards for data protection and assist in meeting local legislative requirements like storing data in the country of operation.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e07e8e6 elementor-widget elementor-widget-heading\" data-id=\"e07e8e6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">What Else?<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1e050de elementor-widget elementor-widget-text-editor\" data-id=\"1e050de\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>As mentioned earlier, automation of lending processes significantly simplifies all the steps of a loan lifecycle: from the formation of an application from a potential client to the issuing of a loan itself. Apart from three cornerstones of a loan mentioned above, HES FinTech may assist you in automating loan servicing \u2014 a crucial part of lending in its own right.<\/p>\n\n<p>By its nature, this part of the lending businesses begs to be automated. And, surely, the automation in loan servicing goes far beyond just keeping an eye on the timeliness of repayments.<\/p>\n\n<p><strong>The status of borrowers <\/strong>\u2014 to keep your database in order, the personal info of borrowers automatically changes according to users\u2019 status updates. This way, you\u2019ll get a clear picture of the payment history for each client case and minimize the probability of data entry errors.<\/p>\n\n<p><strong>Customer management<\/strong> \u2014 it\u2019s all about the automatically-collected data revealing the interactions between parties from A to Z. When logged and stored properly, it\u2019s easy to recover any piece of data in no time. Thus, it gets much easier to improve communication strategies and the collection of debts.<\/p>\n\n<p><strong>Digital records <\/strong>\u2014 it\u2019s 2020, and we\u2019re living in an increasingly paperless world. If your business is located online, why papers, agreements, credit files, and other important documents shouldn\u2019t?<\/p>\n\n<p><strong>Updates from credit bureaus <\/strong>\u2014 credit process automation puts the data from credit bureaus at the fingertips of risk officers, so they have all the data updates on customers when they need it.<\/p>\n\n<p><strong>Automatic notifications on payments <\/strong>\u2014 borrowers receive alerts on upcoming and overdue payments in due course.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-88f15f4 elementor-widget elementor-widget-heading\" data-id=\"88f15f4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">To Sum Up<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6298f56 elementor-widget elementor-widget-text-editor\" data-id=\"6298f56\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The lending industry might not be the sexiest thing on Earth, but technology, when applied wisely, certainly is. It\u2019s in the zeitgeist of our times: we live in a tech-influenced world and its impact gets more tangible with each year. Deal with it, or \u2014 what\u2019s better \u2014 embrace it. After all, in lending, the use of technology via credit automation translates into higher profits and efficiency for a credit organization. Let\u2019s sum up the benefits of an automated lending system, shall we? That\u2019s what automation brings to the lending table.<\/p>\n\n<ol><li>Improved client interactions and support<\/li><li>No more obsolete manual tasks<\/li><li>Fast (and right) decisions at all stages of loan origination<\/li><li>The integrity of data<\/li><li>High accuracy and fast access to data insights<\/li><li>A 360-degree view of the loan portfolio<\/li><\/ol>\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/hesfintech.com\/blog\/how-automation-maximizes-the-efficiency-of-lending\/\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/hesfintech.com\/blog\/how-automation-maximizes-the-efficiency-of-lending<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Loan automation systems help to get away from the long complex process of approving an application \u2014 something that\u2019s been a major inconvenience for ages. It offers speed to the processing of borrowers\u2019 applications and increases the number of loans issued.<\/p>\n","protected":false},"author":1109,"featured_media":19266,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[192],"tags":[116,99,1528],"ppma_author":[3662],"class_list":["post-22774","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fintech","tag-automation","tag-fintech","tag-lending"],"authors":[{"term_id":3662,"user_id":1109,"is_guest":0,"slug":"dolgorukov","display_name":"Dmitry Dolgorukov","avatar_url":"https:\/\/www.experfy.com\/blog\/wp-content\/uploads\/2021\/05\/Dmitry-Dolgorukov-150x150.jpeg","user_url":"https:\/\/hesfintech.com\/","last_name":"Dolgorukov","first_name":"Dmitry","job_title":"","description":"Dmitry Dolgorukov is a Co-Founder and a CRO of <a href=\"https:\/\/hesfintech.com\/\" target=\"_blank\" rel=\"noopener\">HES FinTech<\/a>,and CEO at <a href=\"https:\/\/ginimachine.com\/\" target=\"_blank\" rel=\"noopener\">GiniMachine<\/a>- an AI-driven platform that solves traditional credit scoring challenges with machine learning algorithms. He is a member of the Forbes Finance Council since 2020. He was ranked as one of the most influential AI leaders in Eastern Europe in 2019, and as one of the top 200 Fintech leaders in Europe in 2018."}],"_links":{"self":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/22774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/users\/1109"}],"replies":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/comments?post=22774"}],"version-history":[{"count":4,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/22774\/revisions"}],"predecessor-version":[{"id":31152,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/posts\/22774\/revisions\/31152"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media\/19266"}],"wp:attachment":[{"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/media?parent=22774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/categories?post=22774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/tags?post=22774"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.experfy.com\/blog\/wp-json\/wp\/v2\/ppma_author?post=22774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}