HOW CAN FINANCE ELEARNING AID BANKS IN LOAN ORIGINATION?
The banks are keenly trying to get more customers on board for themselves. These institutions are devising loan products for customers, but, when it comes to technology they are stuck. But now there have been revolutions in LMS in banking like the invention of the loan origination system (LOS).
The loan origination system has been prepared to make sure that banks don’t face any issues while giving loans. As far as a LOS is concerned, it provides leads about loan applicants to banks because it’s amalgamated with the website loan application form. So, this software ensures that the banks can integrate all the information about the borrower and even check their credibility and documents. A conventional LOS checks all the requirements which are crucial for a bank while giving loans. The LOS also sends an autoresponder email to the prospective borrower when the bank either approves or rejects the loan. This kind of banking software reduces the need for banking executives to use third-party applications in the loan appraisal process because they are integrated with it. Such software saves a bank a lot of manpower.
Permanent storage of customer information
The banks can make sure that the customer document files are not lost when they are stored in a LOS. Hence the customer documents complemented with an e-signature are stored in a LOS. As soon as a customer document is uploaded to an LMS, the verification workflow starts, and the third-party confirmation is started. The prospective borrowers are then given scorecards about their credibility prospects in the LOS.
When the customer data is stored online, it can be accessed in the future also.
No need for manual verification
A LOS is a feasible option for banks that don’t have time to install heavy third-party applications. When the banks have fast systems for assessing customer eligibility for loans, they can get a faster entry into the lending market. With a LOS that’s installed on a web server, there’s no need to get an in-house server.
But there is a need for finance e-learning so that bank employees can access such software from their homes and learn about new loan applications. This kind of elearning is useful for employees so that they don’t have any dearth of knowledge but using systems such as LOS.
Easy accessibility of data
Since the data in a LOS hosted on a cloud-based server is accessible anywhere, it eases up the process for bank employees. It ensures that they don’t have to conduct manual verification, which is also relaxing for customers because they get a speedy response to their loan applications. With this LOS, where everything is automated including document management, loan verification, the bank employees don’t have access to third-party websites for processes such as identity verification, employment background check, and fill up their website forms.
How can finance e-learning be useful?
Scanning and uploading documents
Finance eLearning can be used by bank employees to use such software for document uploading and informing the managers about any document discrepancy. They can also search for the documents easily because LOS stores them in a database management system and hence they are searchable through the primary keys attached to each customer record.
Later, when the customer asks about where his loan processing is, they can send the status updates to him after assessing the LOS. If a customer is late in document submission, the banking employees can also initiate a chat with him through the LOS to know the reasons for the delay.
Since the phone numbers of the customers are stored in the LOS, they can be scheduled to receive automatic SMS about the status of their loan application. Any change in bank policies, holidays, and interest rates can also be relayed. All the SMS details of the customers are stored in this software to ensure that the banks have all their history with them.
Know about interest payments
The banking employees also learn about loan servicing through this software via finance e-learning. The software sends automatic emails to banking employees and borrowers when the interest payment is due.
So, if a borrower does not meet his interest obligations, in time, they can inform the bank manager about it and hence downgrade his creditworthiness. The banking employees must also know how to check whether a customer has sent a wire transfer for meeting his due interest.
If the customer is behind schedule on his interest payments, the bank executives receive all the information about the late payment fees through the LOS. Interest payments can also be expedited when there are customer portals established for them. They can be integrated with the bank LOS and enabled through finance e-learning, banking employees can guide customers about using such portals. Even chatbots can be used for customer interaction.
The critical aspect of finance e-learning is that it’s useful for banking managers also because they can decide the portfolio of such institutions. When you get reports about cash flows of different kinds of borrowers, from retail to individual, they can analyze what kind of profits are made by them. Any kind of misbehavior can also be recorded for future lending purposes.
Originally published at https://creativtechnologies.com on September 8, 2021.
