LoanApp

LoanAppis developed specifically to support loan application processing needs for both banks and financial institutions. The application consists of a complete framework for the loan origination processes, which is personalized for each bank from the configuration layer. All sales and risk policies are implemented at this level, from product pricing, sales distribution channels, eligibility and risk evaluation procedures.

Additional information is collected and sent through the integration layer, which allows the interconnection with external systems and databases (Credit Bureau, Application Scoring Engine, Fraud applications) and the bank’s core system.

MAIN FEATURES

ORIGINATION CHANNELS

LoanApp allows the loan origination to be conducted from both the Intranet (Bank Branches) and Internet (retailers, dealers, real estate companies, direct sales agents).

DATA CAPTURING

The application allows the collection of all the information required from the loan applicants in order to conduct the processing, analysis and approval of their request. First, general information is collected about the applicant, its co-debtors and bailors (addresses, employer information, identity card information).

Information on the requested loan is shown in the Loan Screen: the product, type of product, offer, requested sum, tenure and commissions linked to the product. The scoring information is then input, with the needed information being dynamically published from the application, depending on the product type and associated scorecard.

In addition, optional information is collected, such as associated guarantees, life insurance, refinancing, marketing information, client litigations history, etc.

SUPPORTED LOAN PRODUCTS

The main loan products that can be processed using LoanApp are:

• Unsecured loans: Consumer loans, Personal needs loans, Credit cards
• Secured loans: Mortgage, PNL with mortgage, Car loans

Loan products are defined and administered entirely in LoanApp, using a dedicated product administration module that allows the creation and editing of all product characteristics.

Product Manager: For each product, the administrator will define the product parameters, that include the forms and contracts necessary for opening the loan and the customer documents required. Pricing as well as risk policies can be configured at product level, by the definition of interest, fees and commissions, discount limits, scorecards and risk parameters used to evaluate the requests on the associated product.
LoanApp’s product management allows the association of the new loan product with existing promotional offers of the bank, such as a 6 months grace period or a 50% reduction of the analysis commission.

The products can be further assigned to specific sales channels, sustaining the deployment of a targeted sales campaign (for example, a specific partner network can be authorized to sell only a co-branded credit card product).

PROCESS MANAGER – LOAN PROCESSING WORKFLOW

Each loan application is monitored from the time it is entered into the system, and is tracked through all the steps of the credit review and approval process. Due to its web-based interface, LoanApp allows the steps of loan origination, first approval, analysis and final approval to be performed in different locations (branch/partner, head office).

RULES ENGINE

LoanApp can perform the automated calculations of scoring and credit rules necessary in the approval process. It uses a risk matrix to combine all the results obtained from internal (algorithms, internal scorecards, eligibility calculations) or external decision tools (Scoring Engine, Black list, Credit Bureau, Fraud tool) in order to reach the final Resolution on the loan application (approval or rejection).
Internal

• Algorithms and custom formulas (advance conditions, tenure conditions)
• Internal Scorecards
• Eligibility calculations (maximum debt ratio, warranties)
• Knock-out criteria (age, months at current employer etc)

External

• External Scorecards (behavior scoring, credit risk scoring)
• Credit Bureau
• Black lists queries
• Fraud tool

For customers who do not meet all needed criteria for obtaining the desired amount, the application offers alternative financing possibilities, displaying the maximum amount that can be obtained for a certain tenure.

DOCUMENT MANAGEMENT

Document management within LoanApp includes document generating, printing, signing, scanning and uploading. The automated generation of documents allows the fast definition of document form and content, flexible implementation options and a high degree of customization based on user options. The documents are configured by an administrator, using a document model, which represents the association between the document type, the template and the assigned data sources.

REPORTING

Business Analytics and Dashboard Reporting are made available through the use of a report generator and an Activity Monitor.

IT USER RIGHTS

LoanApp allows the administration of rights at User, Units and Workgroups level. The application allows access to different actions according to the rights a user possesses, each user being individually associated with an employee through username and password. For each user, personal data is stored and competences and restrictions are set by the application administrator, based on their role and profile. Also, for a greater flexibility, users can be organized in workgroups.

INTERFACE WITH EXTERNAL SYSTEMS

LoanApp is interfaced through Web Services with various external systems for purposes such as:

• Credit checking (Buffer and Credit Bureau)
  LoanApp contains a Buffer which registers the result of interrogations previously sent to the Credit Bureau, with the purpose of eliminating redundant interrogations. The credit applicants are first verified in the application Buffer and then directly to the Credit Bureau, if necessary.
• Fraud detection
  The application is interconnected with Fraud Management Tools in order to obtain a fraud risk resolution for the loan application. LoanApp is interfaced with Black lists for individuals and legal entities.
• Credit disbursement
  The application automatically opens the loan account once the final approval of the loan is achieved. For Non-bank financial institutions, LoanApp is interfaced with LAM, a Loan Account Management system developed by Ingenio in order to deliver the functionalities of the bank core.