By: Lana Bawaneh
Handling financial lending processes can be way more
complicated than what you may think, while managing them manually may slow down
the process. Institutions, especially financial ones are competing in offering
their services quickly as well as improving their profits while avoiding any
errors.
Having a digitally-driven system that provides a full
cycle of lending management helps a lot. It enables microfinance organizations
to facilitate the process of their borrowers to get money. Many financial
institutions are moving toward becoming digitalised, but upon considering such
a big step for your organization, you must think of how an automated lending
process will benefit your organization?
Loan Management
By having a system for defining the loan type and the
applicable taxes, fees management will be easier than before. In addition,
using flexible forms, entering borrowers’ data and managing loans approval can
be a whole lot simpler.
Online Access
Having a digital portal for potential and current
customers can be very valuable. Such portals can provide functionalities
allowing people to submit loan requests, check their existing loans, and review
other loan details such as interest rates.
Loan Calculator
One important feature that should be included in any
microfinance system is enabling customers to calculate the loan and the
interest rates before requesting one. This feature can filter out the
incomplete requests which in turn could save microfinance institutions time and
resources in reviewing these requests.
Flexible Loan Restructuring
A good system can create flexible repayment schedules according
to borrowers’ ability and the financing organization’s requirements. It can
also be managed in terms of increasing or decreasing the repayment amounts and
duration.
Notifications
Creating and sending different types of notifications
for certain events is an added value for the system. These notifications can be
reminders for payments when extra fees are applicable, instalments are due, and
more.
Document Management
Since the lending process requires so many documents
from borrowers, they need to be organized and archived properly.
Dynamic Reporting
Using an automated microfinance system, generating
reports that suit the business need is such a great feature that helps in
providing the full image of the business.
At the end, it seems clear that technology has a great
impact on every industry, including the financial ones; it reduces expenses and
improves customer’s satisfaction.
Check out ESKA Microfinance from ESKADENIA Software
for an example of a well-developed loan management system.
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