Introduction:
With home loan market growing in tier-2, tier-3 cities and rural sectors in India, there was a need to digitize the complete home loan process. The company encountered significant challenges in home loan process being done manually which resulted in inaccurate customer assessment, increased costing, inefficient operational processes, delays in disbursement and loss of business.
Business Challenge:
Home loan processing requires lot on information collection from the customer and doing right verification and evaluation of all the provided details, based on which decision can be taken. Digitized process would help in increasing the turnaround time and reducing the risk which were the main objectives of the business. Affordable housing space is an unorganized sector and the people in that segment are not that tech-savvy, hence it was quite challenging to digitize the complete home loan journey.
Following were some of the business challenges faced -
- Digitize entire affordable housing loan application process.
- Be among the industry’s first Housing Finance Company having paperless loan application.
- Use advanced digital capabilities like KYC, Income Verification, Banking Verification, VKYC, eSign to automate loan origination process.
- Simplify file login & lead capture process for agents, DSAs.
- Automate Credit & Operations processes for faster TAT.
Solution:
Recognizing the need for a comprehensive solution, the division did an extensive process analysis. A structured approach was adopted, leveraging suitable tools, technologies, and processes. Below is the list of solutions provided.
- Complete digitized loan journey from application creation to credit approval and disbursal was created
- End to End Loan Origination System was developed which included digital capabilities like Bureau fetch, Digital KYC, Income & Bank Verification, Income assessment and Manual Verifications.
- Digital CRM/LOS – which enables Employees (Sales/Underwriters/ Operations team) to process loan applications.
- Loan Servicing for Service request and DIY Modules.
- Mobile App was developed for Customers, Employees and Partners.
Impact:
All the current manual processes were digitized which helped in achieving the objectives as required. Following were the advantages of providing the solution -
- One of the industry’s first Affordable housing loan application journey.
- Templatized Cash/Income Assessment Module.
- Verification Module for Personal Discussion, legal, technical, FI, RCU.
- Multi Bureau & 3rd party Integration capabilities for KYC.
- Rule based Credit Decisioning to minimize risk.
- End to end processing from Lead management to Origination to Loan management.
- Customized Origination journey with complete application tracking.
