Operational and Transactional excellence in Lending to drive down operational costs and achieve regulatory compliance.

Current climate of increased regulation, combined with a global economic slowdown, is challenging the profitability of retail banking operations around the world. Driving down operational cost while complying to regulations are moving up in the priority list of the banks. The most successful banks will be those that have transformed their business models to achieve greater efficiency across the operational value chain.

Objective is to Enhance Operational Efficiency

As the existing systems leave little or no room for further IT intervention, there is an obvious increase in renewed demand flexible FinTech product that drive down operational cost and allow transformation. As most of these transformations require manual workarounds outside the system, these changes take time in transferring data between functional areas, as the data no longer exists within the system.

Traditionally, banks practised adopting to the lending module, as a part of its core banking system and then came the Point systems based on the functional and business needs–resulting in a heterogeneous application mix of applications. Varied technologies and capabilities of this kind often create chasms between business processes across the disparate systems, leading to numerous hand-offs between departments or functional units. These numerous hand-offs increase the transaction turnaround time, and even fail to provide the unified view and timely notifications and escalation that are very critical in the digital era.

FinTech platforms that can bring all stakeholders inside the solution is critical
In order to enhance the operational efficiency across the value chain, banks need to adapt FinTech that offers the capabilities and features which can bring all the stakeholders of lending ecosystem inside the solution. Secondly, these technological advancements must be able to build or procure a componentised and flexible solution with high level of configurability.

More importantly, banks need to abandon the redundant technology-driven approach and instead adapt the business-process driven approach in order to achieve excellent user experience. Change in approach can simply given better business activity monitoring, with event driven or rule based notifications and escalations while providing comprehensive and unified view into entire lending portfolio.

Business driven and process centric platform based FinTech solutions are the need of the hour

Apt FinTech advancements can help banks in combining rule based validations, rule based accounting and standard BPM capabilities powered by the enterprise class workflow mechanism. Combining these factors can bring all stakeholders of the ecosystem including product team, policy and process team, Credit Team, operations team well inside the solution. Through this everyone can get detailed insights, as per their role in the form of performance metrics and dashboards across the lending supply chain. This greatly reduces transaction turnaround time and enhances operational efficiency while achieving complete control over the procedure.

It is highly critical for the banks to identify the right-fit business driven technology solution with a high-level of configurability and componentization that offers sophisticated operational capabilities in several key areas to successfully meet the heightened demands of today’s regulatory and operational environment.

Digital Lending System to Deliver Superior Customer Experience