Many financial institutions are transitioning from their traditional lending processes to more digitized ones, thereby saving resources, increasing revenue, and, most importantly, providing their customers with seamless and satisfying experiences. Individuals now prefer using mobile applications or websites when applying for loans, rather than visiting a physical branch. The question arises: which institution is emerging as the leader in acquiring the most customers in the digital lending market? Undoubtedly, it’s the institutions that offer the most efficient and effective lending system, requiring minimal effort from customers while delivering maximum results. The key to enhancing competitive advantage lies in a robust loan origination and management system (LOS & LMS). Such a system provides not only efficient management and increased operational capacity, automating every aspect of the loan process from application to disbursement, but also analytical abilities that help businesses make data-driven decisions. looms emerges as the ultimate LOS and LMS, incorporating features like Intelligent Document Processing (IDP), automated credit scoring, and link API, among others.
In this blog, we delve into how looms’ distinctive features cater to specific use cases, such as Personal Lending, SME Lending, Buy Now Pay Later (BNPL), and Hire Purchase. To learn more about looms’ features, click here.
Personal Lending: Enhancing the customer experience, increasing the acquisition
For lenders concentrating on personal lending, looms functions as a comprehensive toolkit, streamlining the entire loan origination and management process. The efficient borrower portal and loan management system minimize the turnaround time by eliminating the need to physically visit a branch to submit a loan application. This reduction in loan processing time brings it down to just a few minutes, as opposed to the few hours or even days it takes in some cases. Such a substantial decrease in turnaround time results in a significant boost in customer acquisition. Our client demonstrated a 76% decrease in turnaround time and a 115% increase in customer acquisition. This increase in revenue and competitive advantage not only allows them to reallocate resources to other areas, such as market expansion activities, freeing them from being majorly focused on operations.
Ex: Now let’s see the personal lending use case in a practical example.
- Apply: Borrowers apply for loans through the white-label borrower portal (customizable to your company’s visibility). The process takes about a few minutes.
- Review: The application is submitted to the designated assignee in the backend portal. No paper documents, all review processes are digitized. If there’s some information missing in the application, looms lenders or the loan officers can notify the borrowers through their preferred method (email, pop up notification, SMS etc.)
- Approval: Once the review is done, the application is submitted for approval. Compared to emails or meetings, presenting all the documents of a borrower, the loan manager (approver) can log in to looms and see all the necessary documents being evaluated with already conducted credit scoring. The approver can make an instant data-driven decision based on loom’s analysis.
- Contract & Disbursal: Then the contract is signed either with a digital or wet signature (depending on your country’s customs and regulations) through the LMS. Finally loan disbursal is conducted to the borrower’s registered bank account.
- Repayment: After the disbursal , looms’ LMS helps you manage the repayments, notify the customers regarding their overdue payments and automatically categorizes the debt portfolios.
And et voilà! You have disbursed your loan to your client.
SME Lending: Efficient process, data-driven decision making
SME lending is a complex and arduous process, requiring numerous documents and constant communication with the borrower. Efficient operation (document processing, credit scoring) and effective Customer Relationship Management (CRM) are crucial to retain the customers. looms’ built-in IDP automates the document extraction and analysis process. IDP is a sophisticated tool that combines AI forms of Natural Language Processing (NLP) and AutoMachine Learning. It is able to draw analysis on the financial documents and recommend the best course of action on borrowers. Thus, you no longer have to deal with hundreds of pages of documents to conduct credit assessment.
looms’ analytical ability simplifies the processing of documents, giving you insightful information that helps you make a data-driven decision. While IDP helps you increase your efficiency, looms’ various communication methods assist you improve your CRM, and the collective management feature connects multiple stakeholders within the platform.
Also the borrower-portal allows your customers to change, update, delete any documents in mere seconds. In short, as a SME lender you do not need to spend hours or days to assess the credit risk of a client and your customers do not need to physically visit the branch to resubmit their documents. All steps will be automated and digitized, allowing you to make a data-driven decision within a few hours.
Buy Now Pay Later (Purchase Finance): Faster & Better
The most important aspect when offering customers BNPL financial services is unarguably the speed. Catering to customers’ urgency to make a prompt purchase will keep you afloat in the Purchase Finance market indefinitely. looms offers the following features that help you keep your competitive advantage:
- With its swift and cost-effective integration capabilities, looms seamlessly incorporates BNPL to e-commerce platforms.
- The rapid credit assessment feature aligns perfectly with customers’ urgency to make prompt purchases.
- The custom product engine provides tailored financial solutions that cater to your customer segments.
- Additionally, the integration of BNPL into Looms grants users convenient access to shipment details and real-time status updates, fostering transparency and customer satisfaction throughout the entire purchasing process.
looms guarantees the convenience for you and your customers, digitizing the arduous, paper-based processes and automating the analytical aspects required for swift BNPL service.
Your customers can now enjoy the speedy financial assistance while you enjoy the increased loyalty to your BNPL service.
Hire Purchase & Leasing: One Platform for All
looms fosters efficiency and collaboration by bringing financial institutions, dealers, and end-customers together on a single interface. With user-friendly web portals for each stakeholder, dealers effortlessly enroll new customers, inputting essential information directly into the looms platform. Customers enjoy a hassle-free experience as they upload necessary documents through the borrower portal. looms empowers both dealers and customers to actively track loan progress, thereby establishing transparency and facilitating seamless communication. In summary, “looms” revolutionizes the hire purchase and leasing process by enhancing accessibility, simplifying documentation, and creating an environment of trust and transparency.
looms is a dynamic and versatile solution that addresses the distinct needs of various lending segments. Its core features, such as an intuitive dashboard, streamlined decision flow, and flexible product engine, offer lenders a comprehensive platform for loan origination and management. However, it is looms’ specialized capabilities that truly differentiate it across use cases. Whether it’s the efficient borrower-portal for personal lending, data-driven decision making for SME lending, e-commerce platform integration for BNPL, or agent commission management for hire purchase, looms empowers lenders to optimize their operations and cater to the unique demands of their respective segments.
