Within the next five years, digital lending is expected to be valued at $1 billion in consumer lending alone. This growing trend can be attributed to the shift towards digital banking, the pressure of losing wallet share to fintech counterparts, and the lingering effects of the epidemic. As a result, the banking industry has been gradually adopting digital lending to adapt
One strategy for banks to “digitize” their lending process is by using pre-built platforms from a third party. This tactic offers the best of both worlds. On the one hand, banks can save time developing new products because most commercial solutions are “plug-and-play”, meaning they are ready for use immediately after deployment. Second, having platform-based nature, they often come with a configurable architecture and integration capabilities, on top of which banks can build new lending products.
However, with so many applications in the market, choosing one can be hard. The following article will recommend the 5 most popular digital lending solutions and the technology behind them for banks to consider.
1. Axe Credit Portal
Axe Credit Portal (ACP) is an end-to-end loan origination software powered by axefinance, a global market-leading software provider concentrated on credit automation for lenders.
As a highly flexible Artificial Intelligence (AI)-based credit process automation platform, it covers the entire credit lifecycle, including KYC and Onboarding, Credit Origination and Scoring, Approval & Automatic Decision, Limits and Collateral management, Collection, Post-disbursement, and Loan Services.
ACP is available as a locally hosted or cloud-based solution that simplifies the lending process and gives borrowers transparency, resulting in substantial time savings and boosted likelihood of successful loan approval. Moroever, this solution also offers a seamless omnichannel financing journey while maximizing operational efficiency and adjusting to ever-changing regulations.
By adopting ACP, banks can speed up loan application and processing by 66% and from that, gaining competitive advantages through enhanced customer service & response time.
Discover more about Axe Credit Portal
2. Lend.In
Lend.In is the flag-ship product of Kuliza, a leading banking solution provider from India.
Unlike many products on the market that only support one or a few types of loan, Lend.In is essentially an end-to-end platform integrating a variety of digital lending solutions. This includes many of the most popular types of loans today, such as Commercial Loans, Consumer Loans, and SME Loans.
Lend.In especially stands out with its extensive automation capabilities. There is the Omnichannel Workflow Manager that allows banks to design and deploy new loan products in just a few hours without having to write any line of code. Moreover, the Integration Broker can automatically aggregate customer data from various channels to improve the accuracy of credit operations and predict portfolio equity.
Lend.In’s customers reported that it took them only 3 weeks on average to launch a new loan product. In addition, application processing and approval time has been reduced by 800%, thereby improving the efficiency of disbursement up to 7 times.
Banks wishing to experience how Lend.In works in action can turn to KMS Solutions, the only and official partner of Kuliza in Vietnam.
Learn more about Lend.In.
3. Temenos Infinity Loan Origination
Many banks in Vietnam may have been familiar with Temenos as this is the creator behind the T24 Core Banking system (now renamed Temenos Transact). Temenos may not be so prominent in the digital lending arena. But as a leading financial solution provider, their products are another candidate to consider.
Temenos currently offers only Temenos Infinity Loan Origination. Similar to Lend.In, Temenos’ loan origination system has large customization capabilities. For one, it allows banks to set up an automatic workflow for application approval based on inputs such as loan policy, tolerance, and many other parameters. The available workflows can also be configured or developed to work in accordance with different lending products.
Thanks to Temenos Infinity Loan Origination, bank will longer worry about authentication and data security as it supports electronic signatures on mobile applications, and the ability to encrypt documents each time they are delivered to customers. Management is also ensured because the software can monitor and record the loan process in real-time. In addition, employees can easily report their work thanks to the integration with Microsoft® SQL Server Reporting Services that allows the export of popular files such as Microsoft® Excel®, HTML, XML, PDF.
However, this lending solution will be more suitable for existing Temenos customers, due to the high compatibility available between their solutions that otherwise cannot work so well with products from other vendors.
Learn more about Temenos Infinity Loan Origination.
4. Finastra Digital Lending Solutions
Finastra is a leading financial technology provider from the UK, known for its cloud-based banking solutions. In Vietnam, Finastra is a partner of many major banks such as Shinhan, Vietcombank, and HSBC.
Particularly in the digital lending niche, Finastra is well known for its rich product portfolio, which is constantly updated with new lending solutions such as Loan Origination, Syndicated Loans, Mortgage Loans, Commercial Loan, …. Along with them are value-added systems such as Cash & Liquidity Management, or Collateral Asset Management.
In terms of users, Finastra’s digital lending solutions can all be provided via mobile platforms, helping banks to reach and engage users through multiple channels and multiple media. Cloud architecture and high integration with modern API protocols will also simplify banks’ legacy systems.
Learn more about Finastra Digital Lending Solutions.
5. FIS Commercial Lending
Developed by FIS – a Fortune 500 enterprise, FIS Commercial Lending is also built as a digital platform, where there is a series of modules that take on different functions such as loan origination, underwriting, servicing, monitoring, and reporting.
With FIS Commercial Lending, banks can choose to deploy on-premises if they are not ready to store data in the cloud.
FIS Commercial Lending can digitize lending both front- and back-office. In addition to the ability to automatically approve loan applications when predefined eligibility criteria are met, FIS Commercial Lending also provides an online portal on mobile applications, allowing customers to easily search and retrieve data. In terms of operations, the platform offers a workflow designer for banks to speed up the time it takes to process applications. Information management and data processing will be simpler than ever because all processes, products, and systems are tightly connected via a single platform.
However, the platform is currently limited to commercial lending only. When compared with the solutions mentioned above, FIS Commercial Lending may not be enough for banks to expand their portfolio of digital lending products.
Learn more about FIS Commercial Lending.
6. Mambu SME Lending
Mambu’s digital lending platform is designed primarily for the SME niche. Basically, this product is a loan management technology. Features such as web-based customer identification, credit checking, and loan origination are integrated and provided by partners of Mambu, also leading financial technology companies. Mambu’s loan product supports many different types of loans such as Short-Term Loans, Interest-Free Loans, Revolving Credit, etc.
Mambu’s SME Lending system supports almost every stage of lending from loan origination, disbursement, to debt collection. The solution also provides the ability to adjust lending conditions and policies for banks to support businesses that are facing financial difficulties. This flexibility helps banks better serve small and medium enterprise clients.
Tide, an online bank, chose Mambu to expand its lending products. Taking just 3 months to test and deploy, the service is currently being used by 250,000 enterprise customers.
Learn more about Mambu’s SME Lending.
Recently, KMS Solutions has partnered with axefinance to introduce Axe Credit Portal digital lending platform to Vietnam. Stay connected with us to see how we can help not only Vietnam corporations but also global ones deal with digital lending needs.
