08 October, 2020

The power of process automation in the microfinance sector

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?

If the system you're considering buying has at least the following features, you must proceed because it will streamline your business. 

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. 

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. 

No comments:

Post a Comment

About ESKADENIA Software

ESKADENIA® Software is a three-time MENA Award Winner & CMMI® level 3 certified company that is active in the design, development and deployment of a range of software products in the Telecom, Insurance, Enterprise, Education, Healthcare, and Internet application areas. The company is based in Jordan and has sales activities in Europe, the Middle East and Africa; more than 85% of its sales are exported to the global market. For more information, visit, or contact us at