In the lending scenario, the lending team uses a digital platform for loan management. Evidence gathering and validation, documentation processing, and interpretation are all automated. For borrowers, at this level, issuing has been digitised, with digital signatures for documents and online payments for loan drawdown. However, loan assessment is still done by a human.
At Level 2 of loan automation, the gathering of information around four or five of the five Cs of Credit can be automated, but lending decisions are still made by a human. The borrower’s user experience is digitised at this stage, however the lending team is busy filling gaps in the system and processes in the background.
Create a flow chart of your loan assessment and underwriting procedures in-place today
2. Implement a digital system that standardises the underwriting process