An Introduction to Digital Lending Software: Making Lending Easy & Efficient

An Introduction to Digital Lending Software: Making Lending Easy & Efficient
An Introduction to Digital Lending Software: Making Lending Easy & Efficient

A lending business stepping towards the future of digital lending should be able to go paperless, agentless, contactless, and branchless with digital lending software

This is an exclusive interview conducted by the Editor Team of CIO News with Mani Parthasarathy, Co-Founder of Habile Technologies


With technological advancements in the financial industry, every service in the sector, from payments, investments, and banking to lending, is getting digitized. And, thus, the integration of software makes the customer experience seamless and better. Let me give a glimpse into defining digital lending software.

Digital Lending Software – A Simple Explanation

You can define digital lending software as a cloud-based platform that automates a lender’s entire lending process, from application to disbursement to closure. It helps financial institutions, such as banks, NBFCs, MFIs, and other FIs, manage their loan portfolios. This solution typically includes digital onboarding, loan origination, credit risk analysis, loan management, and loan repayment. It enables financial organisations to streamline lending operations, improve customer experience, and reduce manual errors and delays.

Challenges Traditional Lending Faces

  1. Needs to be more efficient in loan processing and underwriting, leading to long wait times for loan approval and disbursal.
  2. Heavily relying on manual processes increases the risk of errors and inconsistencies.
  3. Limited access to borrowers’ credit data makes it challenging to assess creditworthiness.
  4. High operational costs are due to manual processes and a large human resource.
  5. Rigid underwriting criteria can result in the rejection of otherwise creditworthy borrowers.
  6. Lack of flexibility in loan products and repayment terms makes it challenging to meet the unique needs of borrowers.
  7. Difficulty in reaching and serving underbanked or unbanked populations.

How Does Digital Lending Software Address the Above Challenges?

  1. Automating loan processing and underwriting results in faster loan approval and disbursement times.
  2. Access to a broader range of credit data allows for more informed lending decisions and a better assessment of borrowers’ creditworthiness.
  3. Reduced operational costs due to the automation of manual processes and a small human resource.
  4. Increased flexibility in loan products and repayment terms allows lenders to meet borrowers’ unique needs better.
  5. Increased reach and accessibility allow lenders to serve underbanked or unbanked populations effectively.
  6. Improved accuracy and consistency in loan processing, reducing the risk of errors.
  7. Increased transparency and accessibility for borrowers, improving the overall loan experience.

Introducing Cloudbankin – A New-Age Digital Lending Software

That Solves Every Challenge Faced by Financial Institutions…

Cloudbankin is THE software that perfectly fits the above-described definition of digital lending software!

Let’s dive into its features to know what makes it so unique.

Features of Cloudbankin

Digital Onboarding

This feature in the software ensures an effortless onboarding process for borrowers and lenders. It enables borrowers to apply for loans from anywhere and anytime, reducing the need to visit a financial institution physically. It ensures faster loan processing times by integrating APIs like PAN, Aadhar, Credit Bureau, Bank Statement Analyzer, etc., for data collection and verification. Cloudbankin also provides a user-friendly and accessible experience and the ability for lenders to reach a wider pool of customers, even borrowers in remote locations.

Loan Origination System

Cloudbankin’s loan origination system feature lets a lender to process and disburse loans with lightning speed, encompassing digital borrower onboarding, data collection, documentation, and eKYC. Its feature set includes some of the following:

  • Borrower Onboarding: A seamless onboarding is made possible by automated processes that simplify adding new clients.
  • Omni-channel Platform: Cloudbankin is the only player that provides a white-labelled mobile app to financial institutions and is portable across Android, iOS, and other top browsers.
  • eKYC: A fully digital e-KYC system makes it easier to collect the necessary documents for regulatory standards in software.
  • Credit Bureau Integrations: Evaluating customers’ credit scores is simple and painless, enabling quicker decision-making with Cloudbankin.
  • Bank Statement Analysis: The ability to analyse a borrower’s bank statements for the underwriting process is made possible.
  • Alternate Data Usage: The ability to use alternate data like the geolocation of a borrower or SMS transaction data in case additional data is required for underwriting is also made possible.
  • Decision Engine: Built-in credit rule engine with configurable parameters based on lending organizations’ credit policies and rules to make better and faster credit decisions.

Credit Rule Engine

The credit rule engine feature in Cloudbankin gives the best outcomes based on the rule that determines the credit policies of a lender’s business. Borrower data can be obtained from PAN, Aadhar, credit bureaus, bank statement analyzers, alternate data sources, etc. This no-code platform is able to configure 500 and more (if needed by lenders) data points based on the lender’s requirements. Hence, a lender can set parameters to evaluate borrower eligibility to take a loan and make real-time credit decisions within minutes.

Loan Management System

Cloudbankin’s loan management system feature allows complete freedom to manage loans after disbursement for digitally tracking repayment, loan servicing, and loan closure purposes. Its feature set should include some of the following:

  • Collect and track Repayments – Collect repayments from borrowers via auto-debit or manually. Ensure timely repayments by borrowers, update loan balances, calculate interest and principal components of each repayment, and minimise defaults. Cloudbankin also manages partial payments of loans, handles foreclosures of loans, waives charges and penalties, and writes off loans.
  • Rescheduling of Loans – Lenders can effortlessly adjust existing payment plans with flexible (reduce the number of instalments or amount of EMIs) rescheduling options.
  • NPA Management – Identify loans that are at risk of becoming non-performing, monitor their status regularly, send out early warnings in case loans are going to be NPAs, and work out a repayment plan with borrowers. In the event that a loan is not resolved, write it off or take any other action accordingly. The software is there to mitigate losses for the lenders very easily.
  • Advance EMI – Cloudbankin offers flexible payment options and rapid disbursement by incorporating advanced EMI.
  • Template Customisation – Easily customise templates for documentation like sanctions and agreements, which will be useful for alerts and notifications.
  • Interactive reports and dashboards – Improves a lender’s decision-making ability with reporting and exporting data options which help to submit weekly or biweekly reports to credit bureaus.
  • Alerts and Notifications – Provide timely reminders about due dates or essential events through customisable alerts.

Most Common Lending Products Utilizing Cloudbankin

Cloud banking is typically designed to respond to changing customer needs and provide greater flexibility and accessibility in financial solutions. Some popular and recent financial products that make use of digital lending software are as follows:

  1. Loan products such as personal loans, business loans, mortgage loans, vehicle loans, education loans, etc.
  2. Line of Credit (LOC)
  3. Acts as “buy now, pay later” software and its subsequent products.
  4. Embedded Lending
  5. Co-Lending

Parting Words

Overall, a lending business stepping towards the future of digital lending should be able to go paperless, agentless, contactless, and branchless with digital lending software. And that is only possible with cloud-based, technologically advanced, and comprehensive end-to-end platforms like Cloudbankin. To learn more about it, check out our website!

Hence, you, as a lender, should grab this opportunity for yourself. And discover how Cloudbankin can help you transform your lending business into a modern fintech!

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CIO News, a proprietary of Mercadeo, produces award-winning content and resources for IT leaders across any industry through print articles and recorded video interviews on topics in the technology sector such as Digital Transformation, Artificial Intelligence (AI), Machine Learning (ML), Cloud, Robotics, Cyber-security, Data, Analytics, SOC, SASE, among other technology topics