Digital Onboarding: Transforming Lending from Reactive to Proactive

Introduction

Today, financial services are seeking to provide end-to-end digital lending journeys experience that is personalized, simple and frictionless. This is in response to increasing ‘instant credit fulfilment’ demands of the customers both in retail lending and corporate lending through effective risk modelling system & risk rating platform.

Digital onboarding for account opening, loan origination system, card lending etc. delivers quicker credit cycles with efficient credit assessment, ingrain customers to business and unlocks tremendous customer value. After all, following the customers is the best route to profits.

Below are the five ways to make lending proactive to reactive through digital onboarding-

Eliminate multi-system hopping with a unified platform

Morale was low for traditional users in retail lending as well as corporate lending in financial services. Stumbling through complicated multiple systems, including the core, made reading Stephen Hawking’s ‘A brief history of time’ look like a walk in the park.

Digital onboarding through unified digital lending journeys platform, that integrates multiple systems through simple drag and drop interface, helps capture and display complete customer intelligence in a single window. Eliminating complex coding, pre built elements in visual designers creates faster and reliable connections between various systems for seamless and faster processing for loan origination system, card origination etc.

Faster Fulfillment with cost efficiency

Quick actionable links in customer 360 with straight through processing instantly fulfils simple customer request like profile updates, information request, new purchase applications related to account opening, loan origination system etc. with zero errors and reworks. Requests and welcome processes related to digital onboarding are automated for retail lending & corporate lending.

Reduce data errors with zero rework

Integrity or lending processes is directly proportional to integrity of customer data. Automated journeys executed by visual workflow designers captures the correct customer data in the first instance. This drastically reduces manual efforts through data field mapping & field data validation.
Enforcement of data validation rules through designed workflows helps to capture changes before saving mandatory details. Well defined attributes which constitutes the data with semantic rules get stored in the repository which can easily be fetched at real time.

Automated approvals with faster E-KYC

Self-service portals assists digital customers with E-documentation through multiple touch points with seamless omnichannel experience. Multiple data sources, both internal & external such as historical data, external credit rating agencies & data intelligence detects synthetic identities in real time along with efficient credit assessment process.
E-KYC is a key feature in digital onboarding with e-signatures reducing the sales reps efforts of regular follow ups with the customers resulting in doorstep verification. Lenders can automate applications through robotic underwriting based on predefined parameters, manage exception rules with relevant workflow routing through the data captured and verified with E-KYC.

Increase retention with AI driven analytics

Behavioural analysis with AI during digital onboarding help understand customer profile pattern for generating actionable insights with efficient risk modelling system & risk rating platform. Evaluating the delays involved in the completion of onboarding process or the later stage at which the customer abandoned the process with machine learning helps in understanding the process loopholes that allow continuous process improvements.

Seamless customer onboarding is an important aspect to kick start a successful lender-borrower relationship. Efficient digital processes in digital onboarding & credit assessment help lenders to stand out among the competition.

Digital onboarding processes should include continuous automation with robotic underwriting & process enhancement, paperless processing through E-KYC for seamless lending journeys.

ORIGINATIONNEXT, a unified platform, designed for digital lending journeys, delivers anything, anytime, anywhere service with automated yet simplified onboarding process with reduces operational costs further resulting in instant gratification along with efficient risk modelling system & risk rating platform.