New technologies are reshaping the banking and finance sector. Lenders are expected to digitise their basic processes leading to an increase in digital approaches to credit administration. All of a sudden, lenders had to do a lot more with less due to the added complexity as consumers prefer digital interactions instead of physical ones. This disrupted many credit administration processes as credit administration is one of the most critical components in managing and supporting the overall credit process in a bank or financial institution. It also maintains the safety and soundness of a bank. Although credit administration is all about documentation, and documentation, and documentation, the credit administration process also requires ongoing monitoring, communications between third parties, and possibly reclassifying a borrower. Hence, the systems banks have for the ongoing administration of their various credit risk-bearing portfolios will determine the effectiveness of their loan disbursement.
Do More with Less in Your Credit Administration Process
The credit administration process varies from one organisation to the next. For most banks and financial institutions, the credit administration department will have to do the following:
- Obtain current financial information such as borrower financial statements, collateral appraisals, references, and other supporting data,
- Prepare documents and maintain credit files, including updated appraisals, loan covenant tracking, and reporting,
- Work with various third parties such as lawyers and valuers to coordinate credit analyses and risk rating to enable more effective credit decision-making, and more.
More often than not, banks and financial institutions may perform their very best to bring in new customers but falter at the end from the late disbursement of loans due to manual workflow processes. The PAIN of manual tracking and lodging of financing documentation, inaccuracy in documentation processes, and delays in processing drawdown requests will ultimately lead to poor customer experience and a low customer retention rate. Moreover, accompanied by the myriad of communication breakdowns between various parties in the credit administration process, a solution to end this nightmare might just be what you need!
In fact, maybe take a step back and examine the effectiveness of your credit processes closely. Are they centralised and streamlined? Centralisation – or the lack of it – becomes a prominent and increasingly important consideration in your credit administration process as your organisations grow. Therefore, it is important that banks and financial institutions automate not only the loan origination process but also the entire credit administration process. (To digitally transform your entire credit management process, read more here.)
Do more with less by providing a centralised platform for both internal and external parties involved in your credit administration process. Just imagine this with me, you can manage a panel of lawyers efficiently and automate all case assignments to these lawyers based on specific rules you have created. This will enable you to achieve full visibility of their performed actions which will greatly eliminate manual follow-ups between you and the lawyers. Furthermore, with this centralised platform, you are building a cohesive ecosystem with your partners (the lawyers for instance) in which you can embed escalation and chaser modules to raise alarms to relevant parties when process bottlenecks occur. With that, the relevant parties can trace and rectify overdue tasks which gives you greater operational transparency and efficiency. By just centralising your credit administration processes and everyone involved in the process, you are able to empower case tracking, reporting, and monitoring.
Quoting Hans Hofmann, “the ability to simplify means to eliminate the unnecessary so that the necessary may speak.”
Juris Credit, Credit Administration Made Easy for You
Juris Credit is a first-of-its-kind solution that is designed to increase the efficiency of the credit administration department several times over. Juris Credit is also possibly the only software solution of its kind to connect users with law firms and valuers within a single cohesive ecosystem for a smoother and easier collaboration. In addition, Juris Credit also ensures that the credit processes comply with the latest laws and regulations in the industry. JurisTech has been a major software solution provider in this industry for more than 25 years, trust us when we say we are experts in this field of knowledge. Of course, Juris Credit also seamlessly tracks the performance of every single party involved in the process because banks and financial institutions will need to have fast, consistent access to accurate, real-time data to make the best lending decision.
To awe you further, here are some very cool core functionalities of Juris Credit:
1. Multi-tenancy Workflow with JurisTech’s Workflow Engine
Create and deploy workflows with a robust end-to-end workflow engine where different flows can be created for each financing product and every step involved in a flow can be assigned to a specific group of users like credit administrators or lawyers. The multi-tenancy workflow extends the usability of Juris Credit to other departments and operations whereby the permission to access certain cases and steps in a flow can also be set to vary based on the user’s rank and department.
2. Snag Stages and Chaser Management
Get timely credit processes with task tracking functionalities by tracking turnaround time (TAT), eliminating obstacles or discrepancies, and having friendly nudges to chase pending actions. “Snag” stages are basically stages when business users can monitor the outstanding work and all the obstacles and discrepancies which will alert relevant parties of items/tasks needing attention. This will ensure that all discrepancies are eliminated before proceeding to the next stage. With the snag framework in place, all pending items can be easily traced and rectified. The chaser management on the other hand is friendly nudges that can be set in the system such as an email reminder on pending actions whenever the turnaround time of an action is not fulfilled.
3. JurisTech’s Checklist Management and Automated Document Generation
Manage your documents with ease with a set of document checklist items at each stage of a case. This ensures that the involved parties track and collect the required documents from customers before moving on to the next stage on top of facilitating financial institutions in standardising and strengthening the policy enforcement of completing tasks within the stipulated time. With pre-configured document templates, you can also easily generate auto-populated documents with customer information such as account holder name, address and other financing account information throughout the credit administration process.
With Juris Credit in place, inconveniences like missing mortgage applications, unknowable application status, and slow turnaround time are things of the past. Scale your credit process by digitising and streamlining your credit administration process. Hit us up for a free demo at email@example.com.
JurisTech (Juris Technologies) is a leading Malaysian-based fintech company, specialising in enterprise-class software solutions for banks, financial institutions, and telecommunications companies in Malaysia, Southeast Asia, and beyond.
It is time for credit administrators to play a vital role in solving problems in the banking industry. Juris Credit, the only credit administration platform that unifies the workflow of valuers, solicitors and financial institutions in a single platform.