Why Do Lenders Need Digital Lending Platform?

June 27, 2022 Admin
Digital Lending digital lending platformDigital lending platforms in India digital lending software

Digital lending involves the digitisation of the entire loan disbursement process, from approval of credit to its recovery. Financial institutions have seen a substantive rise in productivity and profits with the help of digital lending platform. It allows for speedier service delivery at the point of sale, and the use of digitised data also ensures accurate assessment crucial to making the right credit decisions. Further, Digital Lending Platforms help build intelligent customer engagement.  

 

The borrowers benefit from it in terms of the freedom to choose a loan product suited to their needs; access to financial assistance, remotely and on time; and the availability of optimised credit free from the hassles of paperwork. It also enhances the customer experience, shortens the feedback cycle, and offers a wide range of loan sourcing options.

 

 

How Digital Lending platform Improve the Lending Experience?

 

  • Digital Lending platform enables paperless loan sourcing processes through digital forms, which can be accessed through any internet device. With no paperwork or human interaction, the full loan life cycle is streamlined on the platform from beginning to end.
  • Optical Character Recognition (OCR) technology and information retrieved from regulatory databases can be used to auto-fill the smart forms, requiring little data entry and producing accurate results. This cuts down on human data entry errors and reduces turnaround time.
  • By obtaining information about the applicant or collateral through digital channels, the software offers additional advantages such as lower costs in KYC, AML, and other verification checks and helps to achieve a faster loan processing time.
  • The programme gathers credit ratings from bureaus, PAN, GST, and Aadhaar authentication from regulators, bank statement analysis, and bank account verification through online APIs.
  • The backend organises their report submissions through an internet portal and conducts field investigation, legal verification, technological evaluation, personal conversation, and fraud scrutiny checks.

 

The software not only improves the speed, accessibility, accuracy, and ease of the loan lifecycle but also makes it simpler for fintech companies to abide by the RBI's lending requirements for banks and NBFCs, allowing them to focus on the growth of their businesses.

 

The software uses analytics to track customer behaviour and understand market trends, both of which may be examined to provide an in-depth understanding of the loan process. This information enables lenders to assign appropriate underwriting resources to fulfil seasonal demands. Additionally, it provides the lender with a solid understanding of the sources of loans, demographics, credit tiers, and other data factors that might help shape market strategy. Digital Lending Platforms in India, like Scoreme Solutions, can leverage technology to add value to the lending ecosystem of fintech companies.

 

 

Open Credit Enablement Network

The Open Credit Enablement Network, which was launched in July 2020, aims to change how credit is distributed to end-users by creating new touch-points for providing financial services. India Stack was responsible for the first paradigm shift in the Indian FinTech business. Its disruptive innovations now provide open APIs as public digital infrastructure for UPI, Aadhar, AEPS, eKYC, BharatPay, BBPS, eSign, DigiLocker, FASTag, and GSTN platform. Open Credit Enablement Network is the most recent development in the IndiaStack saga. It is an effort to enhance lending and enable the development of specialised organisations, each of which focuses on a distinct facet of the job.

 

Additionally, OCEN makes it simpler and less expensive for lenders to find and analyse new clients. The framework helps users integrate a variety of data sources with the Account Aggregator platform in order to shift the emphasis of lending away from balance sheets and toward a cash flow-based strategy.

 

 

Best Digital Lending platform for Lenders

ScoreMe Solutions offers a digital lending platform, besides other digitized financial services that assist lenders with easier loan disbursement, acquiring applicant details, quick decision making, improved lending consistency, and reaching more NTC customers.

 

The following are some digital lenders, besides several others, that Scoreme Solutions regularly works with

 

1. Online and Mobile Lending Platforms

A host of mobile or web-based platforms provides end-to-end digital lending products. Every aspect of borrowing and lending, including loan application, approval, and repayment, is done online or through mobile apps.

 

2. P2P Lenders (Peer to Peer lending)

Peer-to-peer lending commonly referred to as P2P lending is a way of providing credit to individuals or organisations using websites that connect lenders and borrowers. To connect borrowers and lenders, these lenders leverage profiles and data. In contrast to traditional financial institutions, peer-to-peer firms typically offer their services online and at a lower cost.

 

3. Loan Marketplace platforms

These websites assist consumers in comparing loans offered by various banks and non-bank organisations. In this case, unique algorithms are employed to match the lenders and borrowers.

 

4. SME Lenders

Fintechs use cutting-edge technology to cut down market inefficiencies and give MSMEs access to more flexible, inexpensive, and contextual funding. Some of the choices for SMEs include revenue-based financing platforms, supply chain financing platforms (SCF), embedded finance solutions, and credit underwriting platforms.

 

For banks, NBFCs, and online lenders, ScoreMe has created an end-to-end cloud-based lending solution. The platform is backed by ScoreMe APIs and makes use of cutting-edge technologies to assist in loan origination. The digital financing platform uses financial statement analysis to determine loan eligibility, allowing users to receive an in-principle approval in less than 30 minutes.

 

Some of the unique offerings by ScoreMe include a consent-based architecture for pulling out customer data. It leverages ScoreMe APIs across bank statements, ITR, GSTR and financial statement analysis for determining loan eligibility.

 

Other features of the digital lending software from SoreMe include --

 

  • Tailor-made reports as per bank credit policy
  • Suitable for numerous loan types including home loans, personal loans, business loans and MSME Lending
  • Provision for e-signing and loan acceptance
  • Existing integration with twelve loan management systems
  • Offerings for Co-Lending.

Digital lending platforms in India relieve applicants from the inconvenience of a protracted waiting period for credit decisions, have a shorter response time, and are thoroughly transparent. For lenders, it reduces the cost of managing loans and the time spent on underwriting. The platform empowers lenders to process more loans and provide faster approval and funding to borrowers, improving their experience.

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