DIGITAL LENDING SERVICES

Digital Lending Platform Solutions for
Banks and Financial Institutions

We provide end-to-end support for loan origination and booking processes to the BFSI companies via digital lending solution.

When the Traditional Lending Approach Is No Longer Suitable

Traditional lending has been the go-to option for corporations searching financial support. However, in the swiftly changing financial landscape, this traditional lending has constraints and disadvantages.

Necessity for a borrower to visit the branch

Stringent credit requirements

Likeliness of data entry errors

Complicated, lengthy loan approval process

Single Digital Lending Platform With Multiple Business Benefits

KMS’ digital lending solution enables financial institutions to streamline lending process and create a convenient digital loan experiences for customers.

Loan Application Efficiency

Saves time by allowing customers originate loan applications within seconds via digital devices. Enhances productivity and increases growth opportunities.

Efficient Scalability

Paperless, automated workflows that help process larger number of loan applications. Lending platform also minimize the number of systems involved in lending practices.

Error-Free Evaluation

Eliminate sources of human error by leveraging AI/ML evaluation for greater consistency in both the credit approval process and portfolio management.

Compliance-Driven Processes

Digital loan origination systems provide predictable, repeatable, auditable processes, keeping banks and credit unions in compliance with business lending regulations.

Transform Your Loan Products with Confidence

Release your Commercial Lending, Retail Lending, SMB Lending Products with different categories of lending solutions.

Digital Loan Application​

A well-designed Customer Journey using mobile apps for an excellent lending experience. From onboarding, servicing, and disbursement to collections, you rest assured that your process is automated with optimal efficiency and personalized experience.

Loan Origination System (LOS)

Enable centralized credit evaluation and approval for retail and corporate customers automatically in their loan origination cycle, spanning from application, scoring, approval, customer acceptance, and documentation, to final loan booking.

Loan Moratorium

Loan Moratorium serves as a resilient option in response to difficulties and challenges faced by borrowers in loan installment services, at the same time helping to control and manage non-performing loans for lenders.

Customer Lending

Cater to both consumer and wholesale lending needs, offering a diverse range of financial products to meet the unique requirements of individuals and businesses alike from Mortgages, Revolving Lines of Credit, Term Loans, Secured and Unsecured Loans, Installment Loans, and Syndicated Loans.

Delinquency Management

Oversee accounts throughout the debt recovery process, issuing timely reminders for overdue payments.

Restructure debt by rescheduling loan terms, adjusting interest rates, or modifying payment schedules to effectively manage troubled debts.

Collaterals/Limits Management

Integrate with and accept collateral data from all banking systems, including core banking, trade finance, and loan origination for real-time, management-level insight into risk exposure.

Monitor limits, automate alerts, and set up approval processes.

Advanced Digital Lending Services for Efficient Business Operation

Take confidence in your digital lending product with comprehensive offerings from KMS’ Bureau Lending Services

API integration

API Driven Integration with Other Systems

  • Employing robust and standardized APIs to seamlessly connect with third-party systems.
  • Ensuring compatibility with a variety of external platforms, such as credit bureaus and financial databases.
  • Facilitating data exchange in real-time, promoting efficiency and reducing manual intervention.
  • Providing secure authentication and authorization mechanisms for secure integration.
consolidating data in lending process

Consolidated View of Customer Relationships

  • Complete, Consistent, and Consolidated View of Customer Relationships via CRM system
  • Ensuring data consistency across all touchpoints to avoid discrepancies in customer information.
  • Consolidating data from various sources to provide a comprehensive overview of customer relationships.
  • Enabling easy access to historical interactions and transactions for a better understanding of customer behavior.
configurable and automated lending process

Highly Configurable and Automated

  • Offering a user-friendly interface that allows easy configuration
  • Incorporating automation tools to reduce manual effort and errors, with flexible workflow design for adapting to changing requirements.
  • Enabling customization without extensive coding, making the system adaptable to diverse business processes.
  • Flexible charging schemes based on growth volumes.

End-to-End Digital Lending Platform for Loan Origination and Booking Process

Loan Origination

  • Pre-approved offers
  • Loan calculator

Loan Application

  • Data Entry / Verification
  • Borrower / Co-Borrower
  • Credit Requests
  • Financials
  • Collaterals
  • Documents

Underwriting / Decision Making

  • Credit Scoring
  • Pricing
  • Re-payment schedule simulation
  • Credit Decision

Documentation

  • Offer Notification
  • Customer Acceptance
  • Credit Admin Check-list

Loan Booking

  • Straight Through Processing
  • Automatic Decisioning
  • Multi levels approvals

Disbursement

  • Loan activation
  • Collaterals registrations

FAQs about Digital Lending Services

What is a Digital Lending Platform?

Digital lending refers to the form of lending that is applied for, disbursed, and monitored by digital channels such as mobile apps or desktop apps. In digital lending, the FSPs leverage digital data to inform credit decisions and deliver customer-centric experiences.

In terms of output, digital lending is all about enhanced operational efficiency and faster turnaround time. Regarding the technicality behind the process, digital lending is the automation of one or some parts, or the entirety of the lending process—from acquisition and servicing to post-disbursement.

  • Loan Marketplaces These platforms enable users to compare loan offerings from multiple banks and financial institutions. Advanced algorithms match borrowers with suitable lenders, exemplified by platforms like Bank Bazaar and Paisa Bazaar.
  • Online and Mobile Lending Platforms These digital solutions provide end-to-end automated loan services through mobile or web-based interfaces. The entire loan lifecycle—from customer acquisition to distribution—is digitally managed, offering streamlined and efficient lending experiences.
  • Peer-to-Peer (P2P) Lending P2P lending platforms connect individual lenders or small lending businesses directly with potential borrowers. By leveraging sophisticated data analysis and customer profiling, these platforms typically offer more competitive rates compared to traditional financial institutions. Notable platforms include Faircent and i2ifunding.
  • Supply Chain Financing Non-banking financial companies (NBFCs) provide lending services to wholesalers and marketplaces, targeting a large network of merchants and facilitating financial support within supply chains.
  • Line of Credit A revolving credit model allowing borrowers to draw and repay funds flexibly. Platforms like MoneyTap offer interest rates between 15-17% with maturity periods ranging from two to 36 months.
  • SME Lending Specialized digital lending products designed for small and medium enterprises, addressing various operational challenges such as product launches, relocation, recruitment, and marketing. Examples include Farmart and Flexiloans.
  • Invoice Financing A short-term working capital solution for micro, small, and medium enterprises based on unpaid customer invoices. This model helps businesses accelerate accounts receivables and manage short-term liquidity needs.
  • Alternative Credit Scoring An advanced lending approach using algorithmic analysis of diverse factors like payment history and spending habits to assess borrower creditworthiness, moving beyond traditional credit evaluation methods

Digital lending platforms offer several key benefits:

1. Enhanced Customer Experience

  • Apply for loans quickly through mobile apps
  • Access loan services anytime, anywhere
  • Eliminate multiple branch visits

2. Rapid Loan Disbursement

  • Nearly 100% automated process
  • Significantly reduces processing time
  • Minimizes human errors
  • Improves overall business efficiency

3. Minimal Documentation

  • Eliminates extensive paperwork
  • Simplifies loan application process
  • Reduces customer burden of filling multiple forms

4. Inclusive Lending

  • Enables first-time borrowers to access loans
  • Provides opportunities for individuals without previous loan history
  • Uses alternative data for credit assessment
  • Banks have many reasons to upgrade their digital lending services, as they perceive the great benefits of a digital lending platform. Nevertheless, the top reason is customer experience. Branch visits by banking clients had been progressively falling even before social distance regulations were implemented in the aftermath of the COVID-19 outbreak.
  • Banks should expect these trends to go upward as their customer segments become younger, now mostly gen Z and Millenials. They are digital-first users and will continue to determine the way banks deliver their services. While there are customers who still prefer branch visits, banks need to introduce more digital channels for loan applications.
  • In addition to these remarkable trends, there are additional arguments in support of adopting a digital lending platform, such as lower costs, faster loan processing, lower default rates, improved risk management efficiency, and stimulating growth in lendable and non-lendable company prospects. Another key advantage and tremendous economic benefit for a bank is the potential to offer a single application for various loan products that can be completely underwritten at the same time.

Digital lending is transforming how financial services are provided, shifting traditional in-person processes to seamless, tech-enabled systems. At its core, digital lending refers to the online process where customers can apply for, receive, and manage loans entirely through digital platforms. Here is the Digital Lending Process:

  • 1. Loan Application: The process begins when a borrower submits an online application through a digital lending platform. These platforms can range from traditional banks’ online portals to mobile-first fintech apps. The digital interface ensures that applicants can provide all necessary documentation online, including proof of income, identification, and bank details, eliminating the need for physical paperwork.
  • 2. Data Collection and Verification: After the application is submitted, the lender uses various digital tools to verify the information. This includes the use of APIs that connect to external databases, allowing for real-time verification of identity, employment, credit history, and other critical data points. Automation plays a significant role here, reducing manual errors and accelerating the approval process.
  • 3. Credit Scoring: One key differentiator of digital lending is the use of alternative credit scoring methods. Traditional credit scores like FICO might be supplemented by additional data sources such as utility bill payments, social media activity, and spending behavior. These alternative methods help increase financial inclusion, allowing individuals with little or no credit history to qualify for loans.
  • 4. Loan Approval and Terms: Once the data is verified and creditworthiness assessed, the lender decides whether to approve the loan. This step is automated for many digital lending platforms, using pre-set algorithms to evaluate risk based on the gathered data. If approved, the borrower is presented with loan terms such as the interest rate, repayment period, and any additional fees. The transparency of digital lending ensures that borrowers can review and compare multiple offers before accepting one.
  • 5. Fund Disbursement: If the borrower accepts the terms, funds are disbursed directly into their bank account. Digital lending platforms can transfer these funds quickly—sometimes within minutes—making this process far more efficient than traditional lending, which may take days or even weeks. For businesses, such speed can be crucial in managing working capital.
  • 6. Repayment Management: Repayment in digital lending is typically automated. Borrowers can set up direct debits from their accounts, ensuring that payments are made on time without manual intervention. Many platforms also offer apps or online dashboards where borrowers can track their payments, view outstanding balances, and even apply for loan restructuring if necessary.

Transform Your Lending Process with Advanced Digital Lending Software & Services

Explore possibilities in delivering greater business and operations results with our next-gen digital lending solutions.

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A Comprehensive Guide to Digital Lending in Australia

A Comprehensive Guide to Digital Lending in Australia

Exploring the Impact of Peer-to-Peer Lending in Australia’s Digital Era

Exploring the Impact of Peer-to-Peer Lending in Australia’s Digital Era

Most Popular Digital Lending Business Models

Most Popular Digital Lending Business Models