How Automation Maximizes the Efficiency of Lending

July 7, 2020  By HES FinTech
How Automation Maximizes the Efficiency of Lending


Automation is omnipresent in the industry of finance to the point some business owners consider it just a marketing buzzword. If you ask our opinion, well, we couldn’t disagree more. A legit question arises: but what does it have in store for a lending company? Generally speaking, loan automation systems help to get away from the long complex process of approving an application — something that’s been a major inconvenience for ages. It offers speed to the processing of borrowers’ applications and increases the number of loans issued. Based on the data from the credit bureaus, an automated lending platform checks the credit history of a potential client and discards bogus applications straight away. In other words, it makes out of an ordinary business a credit conveyor.

To cut a long story short, by growing the client portfolio with reasonable effort, automation allows lenders to make more money in less time. Surely, it’s just the general idea. In reality, lenders can automate any loan-related steps from A to Z. Here at HES FinTech, as true advocates of loan automation, we use this technology in our projects and regularly cover it in our blog.

So what steps of lending can we automate for you?

Digital Loan Origination Process: Integrity and Automation

Key Takeaway for Lenders: Data-driven loan origination systems (aka LOSs) are risk officers’ best friends. Through automation, a loan management software of that type eliminates manual tasks and assists in overcoming a number of traditional lending challenges. Analytical tools of the system provide lenders with an opportunity to offer better customer experience and improve efficiency and loan performance in the long term.

The presence of automation at the stage of a loan origination results in:


  • Full compliance with lending regulations
  • Reduced loan approval time
  • Elimination of manual loan processes
  • A faster and more accurate underwriting process
  • Better customer relationship management
  • Fraud detection
  • Diminished risks of data compromise

Surely, the introduction of an automated loan origination workflow is challenging. It takes time and dedication from both senior management and employees, not to mention it’s costly. But guess what. The competition in the market is tough, and an effective software deployment strategy provides you with an upper hand over your competitors. Sounds interesting? Visit our page to get the details.

How Automation Improves the Debt Collection Process

Key Takeaway for Lenders: Automation helps collectors to fine-tune their communication strategies, increase customer satisfaction, and provide fast follow-ups — an important part of the job. It reduces costs through a better decision-making process, effectively manages problem debts, and increases compliance with corporate policies. In total, the debt collection solution by HES FinTech increases profitability and reduces the collection of overdue debts.

The global pandemic demands for new approaches in the collection industry. Even though the sector still relies on human judgments, automated debt collection software can improve both performance and productivity being non-intrusive in these hard times.

How Automation Improves Compliance in Lending

Key Takeaway for Lenders: HES FinTech specialists can outline the best approaches in setting up the basics of the KYC/AML process: authority-matrix based operations, configurable workflows for various customers, maker-checker decision-making process and keeping registries of blacklisted individuals or companies.

There’s a recurring topic within the lending community: the integration problems with third-party services is the definition of pain. Here at HES FinTech, we believe that the fear of integrations is exaggerated. With over 400 integrations under our hood, we help businesses to do integrations with 3rd parties such as AML lists, terrorist lists, PEP checks, Ministry of Interior data cross-checks, banks, and credit bureau data cross-checks.

Data is the foundation of the KYC/AML procedure. At HES FinTech we firmly believe that data protection is an integral part of the KYC process. We strictly follow globally-accepted standards for data protection and assist in meeting local legislative requirements like storing data in the country of operation.

What Else?

As mentioned earlier, automation of lending processes significantly simplifies all the steps of a loan lifecycle: from the formation of an application from a potential client to the issuing of a loan itself. Apart from three cornerstones of a loan mentioned above, HES FinTech may assist you in automating loan servicing — a crucial part of lending in its own right.

By its nature, this part of the lending businesses begs to be automated. And, surely, the automation in loan servicing goes far beyond just keeping an eye on the timeliness of repayments.

The status of borrowers — to keep your database in order, the personal info of borrowers automatically changes according to users’ status updates. This way, you’ll get a clear picture of the payment history for each client case and minimize the probability of data entry errors.

Customer management — it’s all about the automatically-collected data revealing the interactions between parties from A to Z. When logged and stored properly, it’s easy to recover any piece of data in no time. Thus, it gets much easier to improve communication strategies and the collection of debts.

Digital records — it’s 2020, and we’re living in an increasingly paperless world. If your business is located online, why papers, agreements, credit files, and other important documents shouldn’t?

Updates from credit bureaus — credit process automation puts the data from credit bureaus at the fingertips of risk officers, so they have all the data updates on customers when they need it.

Automatic notifications on payments — borrowers receive alerts on upcoming and overdue payments in due course.

To Sum Up

The lending industry might not be the sexiest thing on Earth, but technology, when applied wisely, certainly is. It’s in the zeitgeist of our times: we live in a tech-influenced world and its impact gets more tangible with each year. Deal with it, or — what’s better — embrace it. After all, in lending, the use of technology via credit automation translates into higher profits and efficiency for a credit organization. Let’s sum up the benefits of an automated lending system, shall we? That’s what automation brings to the lending table.

  1. Improved client interactions and support
  2. No more obsolete manual tasks
  3. Fast (and right) decisions at all stages of loan origination
  4. The integrity of data
  5. High accuracy and fast access to data insights
  6. A 360-degree view of the loan portfolio

Interested in going in full automated mode? Contact us today and make automation a vital part of your lending business’s DNA.