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While assessing any business’ creditworthiness can be challenging, automated financial spreading makes it easier than ever before to understand your customers. The automation tools available today improve underwriting standards, ensure timely approval, optimise pricing, and mitigate any unpredictable losses.

In the current loan market, many software application options are available to lenders. These tools aim to meet the automation needs for loan origination and credit assessment. Using automation can significantly increase efficiency, productivity, and decision speed, enhancing customer experience.

Loan Origination Process

How does automation improve loan origination?

Loan origination is when a borrower applies for a loan, and the lender disburses the loan. Since the multiple steps may differ from loan to loan, mortgage loans typically have a separate origination process.

Many lenders today continue using manual, paper-based loan processes that clash with the digital revolution. Physical documentation slows decision time, prolonging the approval process, leaving customers dissatisfied. Since banks usually need a borrower’s financial statements for commercial loans, automated financial spreading can make this process much faster.

We can see the greater impact of automation by moving through the loan origination process’ stages.

Customer Management

Since the first step of the loan process is taking your customer’s financial details, automating it here simplifies the remaining process. Automation in customer management processes achieve the following:

  •       Information inconsistencies and delay mitigation
  •       Differentiation between complete and incomplete applications
  •       Pre-filling information fields
  •       Seamless CRM integration
  •       Secure database for all customer information

Keeping customer information in one place leads to sophisticated automated financial spreading. Digitizing and automating this way increases convenience and, consequently, customer satisfaction.

Credit Analysis

Automated loan origination software today allows lenders to access any relevant financial data to assess credit risk from accounting software, tax returns, and other documents. The automation further ensures accuracy and efficiency in tabulating the borrower’s financial details for analysis and maps relevant data onto charts. Therefore, risk assessment is much easier with visual data representation and easier interpretation.

Presenting and Determining Credit

After analysis, most lenders have a fair understanding of their lending appetite. If positive, they can create a credit presentation. This credit application becomes much easier through automation, combining elements from customer management and risk assessment for a holistic overview of loan ability.

Monitoring

Managing the asset and monitoring risk after the loan origination process is required annually, quarterly or even monthly. Automated covenant solutions enable high-quality data analysis with accurate information provided promptly. As an extension of automated financial spreading, it ensures you are on track and minimise risk effectively.

Portfolio Risk Management

Having an accurate portfolio reporting tool makes understanding portfolio exposures much easier. Automation proves to be a cost-effective way to measure a loan portfolio in terms of capital usage accurately. It can also efficiently analyse and give you a holistic risk assessment by reconciling portfolio data.

Therefore, automated financial spreading and loan origination processes minimise risk significantly while giving you a comprehensive overview of your customers. You gain key business insights through the powerful tools available today that can improve efficiency and precision manifold!

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