Working under tremendous pressure to support businesses, lenders are drowning amidst the high volume of work, lack of supporting technology, stretched resources to validate, process, and disburse loans, and the very real risk that many of these loans could be defaulted on, risking not just profitability but even the lender’s sustainability.
Intelligent automation to drive efficiency and speed in the SME lending process for lending institutions
Many UK lenders feel like they are stuck between a rock and a hard place. With the British Business Bank (BBB) issuing directives to lenders providing credit schemes on the one hand and businesses, both viable and not-so-viable, seeking financial support on the other, British lenders are feeling the squeeze.
Approval rates for emergency coronavirus support loans have been at 73% for BBLS and 51% for CBILS, with almost GBP 12 billion of the BBLS loan expected to be at a significant risk of default.
Working under tremendous pressure to support businesses, lenders are drowning amidst the high volume of work, lack of supporting technology, stretched resources to validate, process, and disburse loans, and the very real risk that many of these loans could be defaulted on, risking not just profitability but even the lender’s sustainability.
Recognising the challenges faced by large, traditional lenders, many smaller and nimble FinTechs have leaned on new technology solutions to improve processes around credit lending. Hence, six new FinTechs were added by BBB.
LatentBridge has created a 4-step approach to smarter credit lending leveraging intelligent automation that large, medium, and small lenders can easily adopt and implement.
Collaboration and communication
Online peer-to-peer collaboration tools enable a collaborative environment between functions like operations, finance, risk, and support teams for the exchange of data, documentation, decision support, and regulatory compliance.
Communication Channel Intelligence: Use existing customer communication channels to provide timely, context-rich information through regular emails, notifications, updates, and other communications.
Data as an intelligence driver
Real-Time Decision Analytics Dashboards: Dashboards that deliver a comprehensive view of credit analytics to support real-time decision-making based on available information.
Reliable Credit Insights: Integrate forensic intelligence into credit appraisals by doing a data deep-dive from multiple sources like borrower history, market feeds, 3rd party credit research inputs, industry and company performance, default rates, and others.
Workflow Acceleration
Automated Workflow Tools: Enable customers to quickly input, validate, and apply for loans with minimal manual intervention by using trusted data like audited financial information, accredited KYC-AML, directors checks, and other sources.
Intelligent Processes: Enable digitalisation across the lending cycle through smart workflows and entitlement-based activities.
Efficient regulation and delivery
Compliance Tools: Implementation of organisational credit limits, client-sectoral exposure, and similar firm-wide checks and balances at various stages of the lending cycle, from loan request to loan approval.
Pricing Engines for Credit Products: Integrated top-down pricing calculators that are fully integrated with back-end credit bureaus and permissions to the front office to enable speedy loan offers and manage customer expectations.
Lending institutions can leverage all or a combination of these steps and incorporate technologies such as AI, ML, and OCR tools alongside RPA bots and other digital elements to drive efficiency across the lending process. The data deep-dive can provide critical business and industry insights to help lenders manage these loans.
LatentBridge’s scalable, AI-based Intelligent Automation (IA) platform, albai, has helped accelerate a mid-sized lender’s credit assessment and decisioning process through AI and ML tools. The lender saw a 40% reduction in processing time, a 90% reduction in average response time, and a 60% reduction in cost.
In another situation, a bank’s loan authorisation process had a high propensity for human error. By modifying the workflow, the bank realised a 95% reduction in input errors, with over 90% of the process being automated.
Write to us at contact@latentbridge.com to get a free consultation with our expert on how we can help your business accelerate and scale its automation journey.
Empowering enterprises with intelligent automation solutions for streamlined operations and accelerated growth.