7x Faster Loan Application Process Through a Custom Suite of Business Applications
Our client was struggling with its outdated loan application process, which required customers to go to their loan broker and fill out paper-based forms.
million business users
faster loan application process
faster customer onboarding
Background and Problem
Our client was struggling with its outdated loan application process, which required customers to go to their loan broker and fill out paper-based forms. This process was prone to manual errors, time consuming, and logistics-heavy, requiring the brokers to print out all the required forms, and send completed forms to the back office for verification.
The client wanted to redesign their loan onboarding process to make it more efficient, reliable, and secure. Their goal was to replace this manual operation with a digitalized one that reduced the points of interaction, lowered potential for human error, and prevented unnecessary delays. Moreover, they wanted to provide their brokers with the additional flexibility of proactively approaching potential leads, rather than waiting for customers to come to them.
Adastra had a strong reputation in the financial services industry and a track record of delivering successful, innovative solutions for over 20+ years. Based on our expertise, the client selected Adastra as their partner of choice for the digital transformation of their loan application process.
Adastra’s Solution: A Customized Suite of Apps
The Adastra team spent some time understanding the client’s requirements and pain points, and based on those, recommended a customized suite of apps, including:
Image: Package offer dashboard
The client had started placing their loan brokers in high-end department stores, offering the stores’ customers the option to take a loan for their purchase and pay monthly installments rather than a lump-sum amount.
With the Sales App, the brokers could proactively approach potential leads in the store and offer loans. The application process itself was simplified and the brokers could help customers fill out a digital form on a tablet and scan their documents via OCR to pre-fill their basic information. The app automatically validates the details, which speeds up the loan disbursement process. Key functionalities of the app include:
- Data validation and calculation
Customers can input their information, such as name, income, employment details, address, etc., and the application validates the details in parallel. The broker can then offer a loan plan, enter the loan amount and payment term, and the in-built calculation algorithm simultaneously calculates the monthly installment amount.
- OCR integration
The solution allows customers to scan their ID cards and uses OCR technology to auto-fill their personal information into the form. This increases the efficiency of the process and reduces the possibility of errors and typos.
- User authentication
To confirm the applicant’s identity, the security system uses a 6-digit SMS verification code, an e-signature, ID and bank cards, and a photograph, which then gets validated through a national database. The app uses high-tech features such as facial recognition and face liveness detection to improve the customer verification process. Brokers, too, have to use their credentials to log into the system for security purposes.
Loan brokers have access to a dashboard where they can review their current and historical sales performance and compare it with that of the top 10% performers.
Image: Client identification dashboard
The Client App is an extension to the Sales app, where customers who availed loans for their purchases can log in to find detailed information about their loans and repayment history. The app has a built-in payment wallet, which allows customers to make payments easily and conveniently. In addition, they can also receive personalized promotional offers based on their earlier purchases, which they can buy using an additional loan, all delivered as push notifications.
The Service App is used by the client’s employees to register merchants to their internal system. The app provides a digital, paperless alternative to simplify and streamline the merchant application process. Registered merchants can then download the Seller App to promote their products and offers to the client’s customers.
Registered sellers/merchants can use this app to manage their branch profiles (including employee name, phone number, opening hours, etc.), create coupons and discount promotions for each branch, and view the transaction history of each branch store. In addition, the app allows them to process and accept mobile payments made using QR codes or barcodes.
Onboarding time reduced by 50%
- Increased profitability
- 7x faster loan approval process
- Ecofriendly paperless process
- Higher customer satisfaction rates
The suite of apps has been used by over 11 million users so far, including the client’s employees, customers, and merchants. It has made it possible for the client to proactively sell to prospects, and offer both their customers and merchants a seamless, efficient experience.
- Efficient Application Process
The robust platform has helped streamline the application process to increase the efficiency and productivity of loan brokers. Over 60 thousand brokers benefit from the app, and it has cut the customer onboarding time by 50%, allowing brokers to complete more loan applications and merchant registrations in a day. The built-in validation checks and simplified form have also been instrumental in reducing back-office involvement in the underwriting process.
- Cost Savings and Increased Profitability
The digitalized process is cost-effective, both in terms of logistics and human resource time savings. In addition, brokers can complete more applications than ever before, which results in increased profitability for the client.
- Environment-friendly, Paperless Process
The app has eliminated the need for multiple paper applications, consent forms, and contracts, and has drastically reduced the client’s paper consumption. As a result, they no longer need dedicated storage space in their back-office to store applications.
- Satisfied Customers
The entire loan application process can now be completed in just a few minutes, which means customers can quick get loan approvals and disbursals. By providing their customers with an easy and speedy experience and giving them the option of tracking their repayment process and making payments using a dedicated app, the client has seen an increase in overall customer satisfaction.
- In-built Flexibility
The solution can be easily adapted to other markets, with provisions for local data protection and loaning regulation compliance.