Leveraging Data and Technology for underwriting

11th April 2023

Meet Prachi, a loan credit manager at a lending institution in India. Prachi has been working in the banking industry for over a decade, and she has seen first-hand how tedious and time-consuming the manual loan processing system can be. She starts her day by checking her inbox, which is flooded with loan applications that need to be processed. Each application is accompanied by a bundle of documents, which Prachi must manually verify and validate before approving the loan. The documents include identity proof, address proof, income proof, bank statements, and business plans, among others.

Prachi spends hours sifting through each application, ensuring that all the documents are in order and that there are no discrepancies. Even the smallest mistake or inconsistency can lead to rejection of the loan application. She must be extra careful because she is responsible for assessing the creditworthiness of each applicant. To add to her workload, she must conduct a comprehensive credit check and analyse the credit history, employment status, and income of each applicant. This means she must gather data from various sources, including credit bureaus, income tax departments, and employer databases, among others. All their information needs to be manually entered into the loan processing system, making the process even more tedious.

Prachi also must deal with physical documents, which means that any error in document management can lead to delays in processing or even loss of important documents. This often happens due to human errors, such as misplacement or mishandling of documents. The manual loan processing system not only consumes a lot of time and resources but also increases the chances of errors and fraud. Prachi has seen many cases where applicants have submitted fake or doctored documents, leading to a loss for the bank.

Despite these challenges, Prachi remains dedicated to her job and strives to provide the best service to her customers. However, she often feels overwhelmed by the sheer volume of applications and the tedious nature of the process. She wonders if there could be a better, more efficient way of underwriting loans. As Prachi finishes another long day at work, she hopes that the bank will soon adopt newer technologies, such as credit processing automation, to make the loan processing system faster, more efficient, and more secure.

One day, Prachi receives an email from the IT department announcing the implementation of Perfios CAM (Credit Assessment and Memo) automation product to help the credit managers. Intrigued, she decides to explore the product and its capabilities. Prachi learns that Perfios CAM automates the entire loan underwriting cycle, from individual documents analysis to cross analysis. The product uses AI and ML algorithms to analyse the data entered and documents uploaded by the bank or customer and generate reports, reducing the need for manual intervention. It also automates the credit check process, reducing the time and effort required to analyse the creditworthiness of each applicant.

Excited about the potential of Perfios CAM, Prachi decides to give it a try. She uploads a few loan applications documents onto the platform and is amazed at the speed and accuracy of the system. Perfios CAM digitises the documents, extracts relevant data, and categorises them automatically. The Perfios CAM system goes the extra mile by cross verifying the information provided by the applicant with multiple external sources such as EPFO, multiple KYC databases, MCA, litigation, GST, Income tax, etc. This ensures that the data and documents entered are accurate, and any errors or discrepancies are promptly identified and highlighted for correction.

Prachi can monitor the entire loan processing cycle on the Perfios CAM dashboard, which gives her a real-time status update of each application. In addition, the system generates deep insights and risk triggers that allow Prachi to identify potential issues with loan applications on an overall basis. The CAM product lists all triggers in the report, drawn from multiple data sources, giving Prachi a comprehensive view of each applicant's creditworthiness. Moreover, the platform flags any discrepancies or missing documents, allowing Prachi to rectify them immediately.

The impact of Perfios CAM on Prachi's workload is evident. She can now process loan applications ten times faster than before, with minimal errors or discrepancies. The platform has also reduced the chances of fraud or fake documents, giving Prachi more confidence in her decision-making. Moreover, she is now free to focus on providing better customer service and building stronger relationships with clients. She can use the time saved to address customer queries and concerns and guide them through the loan application process.

Overall, Perfios CAM has transformed her work experience and made her job more rewarding. She is grateful for the technology and hopes that other banks will adopt similar solutions to improve the loan processing experience for their employees and customers alike.

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