Automatically check whether all the required “blanks” have been filled,.Loan processing software leverages IA to: Manually going over these details – to approve the advancement of the loan application onto the next round – can be time-consuming and error-prone. Or if the name of the loanee on the application document and the one on their ID does not match, follow-ups should be made to authenticate the applicant. Loan application processing is the bank’s employees making sure the documents they’ve received are complete, accurate, and up-to-date.įor instance, a bank statement from three years ago is not relevant to a loan being extended today. So the initial stage of a loan application, which is document submission, can be made more efficient and streamlined. Then, RPA will copy-paste the data onto the bank’s systematized format. On the lender side, technology such as OCR can read through the document and look for the specifics and extract them. Figure 2: Smartphones’ “share” functionality leverage API and allow users to share documents with other applications without leaving the original application. Or through API, the applicant can share their documents from one application with another instantly via the “Share” button (see Figure 2). For instance, the applicant can submit their recurring bank statement to the loan provider online by downloading it in PDF format. On the part of the applicant, loan applications can be completed online, and supporting papers can be collected from sources and uploaded digitally on the banking portal. Image source: Pinterestĥ6% of bankers claim that their biggest challenge when initiating the loan process is manual data collection and the back-and-forth with the applicant. To fill out the loan application, the borrower should provide the lender with their:įigure 1: A typical loan application template. Loan processing is a series of steps the lending institution takes to assess a loan application and reach a decision to either extend or reject the loan. In this article, we will explain what loan processing (as a whole is), go over the six steps of loan processing, and explain how automation technologies, such as RPA and OCR, can be used at every step of the way to make for a more accurate procedure. Whether from the borrower’s side or from the lender’s, manual completion of these steps can slow down the loans’ processing time, contribute to errors, and needlessly take up everyone’s time.īanks, credit unions, and other financial lenders can leverage automation to streamline their loan application processing and run a more efficient lending practice. 1 The end to end procedure consists of roughly six steps: The average loan processing procedure takes 52 days to complete.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |