How Loan Automation Maximizes the Efficiency of Lending Process

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


Fintech made lending accessible to everyone, not just banks. A loan automation system helps get away from the long complex process of approving an application — something that’s been a major inconvenience for ages. With affordable loan automation, alternative lenders gain a competitive advantage over banks and make loan decisions within hours. So here’s the question — what does an automated loan processing system can?

The credit process automation 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.


By growing the client portfolio with reasonable effort, automation allows lenders to make more money in less time. Lenders can automate any loan-related steps. Here at HES FinTech, as true advocates of loan automation, we use this technology in our projects and regularly cover it in our blog.

Loan Processing Steps that Should be Automated

According to McKinsey, about 45% of business activities can be automated by today’s technologies, an equivalent of $ 2 trillion in total annual wages. Here at HES FinTech, we can automate every step of the loan process and helps you save money. The HES team cares about the following lending steps:

  • Loan origination and customer onboarding
  • Risk management and decision-making
  • Collateral management
  • Loan servicing and management
  • Reporting and statistics
  • Document management and data validation
  • Debt collection
  • Customer and user notification, and many more

Loan Originating Software Tasks to Automate

A data-driven loan origination system or LOS is a tech-salvation for risk officers. Credit process automation eliminates manual tasks and assists in overcoming some traditional lending challenges. Analytical tools of the system allow lenders to offer a 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 by days
  • Elimination of manual loan processes
  • A faster and more accurate automated loan underwriting
  • Better customer relationship management
  • Fraud detection
  • Diminished risks of data compromise

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 an effective loan originating software deployment strategy provides you with an upper hand over your competitors.

Customer onboarding and application processing

The development of loyal relationships with customers from the first contact is the basis of business success. By automating the customer onboarding process, you can rest assured that every user is able to choose a preferred communication channel and can easily navigate your services and web pages. While application processing and automated loan approval cover every stage between application submitting to funds distribution or the decline of a loan. So now the work of a great team of originators can be done by intelligent algorithms saving your money and time.

Debt collection

Credit process automation helps collectors to fine-tune their communication strategies, increase customer satisfaction, and provide fast follow-ups. 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 demanded 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 by being non-intrusive in these hard times.

Compliance and regulatory

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.

Online document management and reporting

Statistically, loan officers need 18 minutes on average to locate a document manually — up to 40% of their time. An automated loan processing system can manage your agreements, offers, contracts notes, and other system documents. Automation allows reducing the time employees spend managing business documentation and concentrate on more significant tasks. Besides, HES can visualize the dynamics of your business indicators, such as credit portfolio statistics, current balance disbursed and repaid loans, key business indicators, loan applications, overdue contracts, and more.

Loan Processing Software: What Else to Automate?

As mentioned earlier, credit automation 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. Apart from the 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 business begs to be automated. And, surely, the loan process automation in credit 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 cover to cover. 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 collect debts.

The business ecosystem moves to an increasingly paperless experience. 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

Automation might not be the easiest thing to apply in lending, but the appropriate technology implementation can level up the business. The use of an automated lending platform translates into higher profits and efficiency for a credit organization. Let’s sum up the benefits of loan processing automation:

  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 and make automation a vital part of your lending business.