In the banking industry, one area where automation can really prove its worth is in the loan processing system which is highly time-consuming and prone to human error. Commercial lending for banks is more than what meets the eye. The aim is to generate economic benefits keeping in mind the factors like creating shareholder value, managing risks, etc. To achieve this aim, banks need a process which is faster as well as error-free. The Loan processing system in banks has seen its share of digital innovation over the years.

While it is easy for big banks to include automation in their loan processing system, the actual challenge is for the small and medium banks. However, the bright side is that small and medium banks have an open platform to innovate rather than just shifting to a digital platform.

USA’s CARES ACT

To help the smaller business and employees continue their business smoothly amidst the pandemic, the US government passed the Coronavirus Aid, Relief, and Economic Security Act also called CARES. This act is divided into four categories:

Assistance for American Workers and Families

The CARES act is launching a web-based portal for American households whose income is less than $99,000 or ($198,000 for joint filers,) so that they can fill in their financial details. Based on this, they will be receiving timely payments of up to $1,200 for adults and $500 per child.

Assistance for Small Businesses

The Paycheck Protection Program under CARES act is established to help small businesses, NGO’s, tribal businesses, etc., by providing funds up to $659 billion mainly prioritizing employees of small businesses. It covers 8 weeks of payroll costs, interest on mortgages, rent, and other essential utilities.

Preserving Jobs for American Industry

Many businesses are/were on the verge of closure due to the pandemic. This category is specific to those businesses that need economic assistance. Amongst many aids like employee retention, excuse for delay in employee tax payment, payroll support, CARES act concentrates on a loan program to provide liquidity which can compensate for the losses due to coronavirus.

Assistance for State, Local, and Tribal Governments

This category explains about the situations under which the funds according to CARES Act can be used which include emergency expenses, expenses that were not accounted for the State government (T&C applied), expenses incurred between March 1, 2020 and December 30, 2020.

Loan processing journey using Hyper-automation

Let’s look into how Hyper-automation can affect the loan processing system:

  • Loan application

Manually, banks use papers and static PDFs as application but using Hyper-automation, one can apply online with E-signatures and E-forms

  • Customer information

In manual process, banks get the customer information in a paper, but hyper-automation can automatically import the data with its smart ability to scan the data from images and other forms of data representation

  • Communication

Banks using manual process communicates with the customers using telephone or email, whereas using hyper-automation, bots and intelligent agents take over the job

  • Document processing time

Manual operation and workflow tasks are highly time-consuming while hyper-automation completes in minutes or hours

  • Data entry

Manually process like KYC expects customers to personally provide the information while with hyper-automation, fully partnered ecosystem integration does it in a much smarter way

  • Compliance

Manual document and records are not just time consuming but prone to errors. Fully automated records are faster with fewer/no errors

  • Analytics

Manually, analytics is done using ad-hoc reporting while automated reports provide fully customized analytics which leads to longer customer retention

Aspire’s automation process

Aspire’s technical expertise helps customers lead in the technical advancements and innovations all the time. Aspire’s technical group understands that this can be achieved only with different skill-sets and they work continuously to keep up with the skills. The same is applicable in case of  Hyper-automation as well. Here are Aspire’s offerings:

  • Process Analysis and Identification

Aspire identifies maximum opportunities where automation can be effectively implemented before laying out the roadmap

  • Process Documentation and Enhancements

Aspire discovers process deviations beyond Happy path and optimizes the processes for RPA

  • RPA Strategy

Aspire defines the key roles and structure for RPA and also builds the strategy for Parallel Tracks

  • Customer RPA Model

As part of the Customer RPA model, Aspire provides small-scale automation PoC (Proof of Concept) to show its ROI potential and to determine the optimum model for execution

  • Build and Deploy

By merging AI, ML, Cognitive Automation and other technologies, Aspire builds efficient software bots with minimum efforts

  • Enablement and Training

Aspire’s technical team undergo several internal training with respect to sustainable and scalable RPA technologies

  • Engagement and Execution Model

All the above features are integrated with a proper execution model which consists of automation objectives, CoE (Center of Excellence) development and scalability, 24/7 operations, and quick service delivery

Conclusively, automation has already impressed enterprises with its wide range of functions and Hyper-automation is a step up for these enterprises. With COVID19 affecting the businesses and forcing them to adapt to a new process, this is the right time to get proactive and innovate the business process digitally.

Hyper-automation in Lending

 

Aishwarya Iyyengar

Aishwarya was once a Quality Assurance Engineer then moved to Oracle SQL Development. But her love for writing shifted her to the world of Content Marketing and she hasn’t looked back since then. Her interest ranges from food topics to trending technologies. She loves reading books and her favourite genre is Mythological Fiction. Apart from that, she is a South Indian filter coffee lover.