The analysation of the finances of a business along with a reason of borrowing by a banker or a lender is known as commercial loan underwriting.
But the question arises how can the mundane manual process be deciphered into a reliable automated one, and can the loan process be automated to give a better and reliable output for the business?
The traditional lending practise required examining the borrowers background and financial state manually which was a root cause of many mishappenings in the loan disbursement.
But a lending software application helps in the loan origination and credit assessment requirement of the lenders to thereby increase the efficiency, decision making speed and productivity.
What is Decipher Underwriting Software?
Decipher Underwriting helps to ease down the manual underwriting process by automating every step to make better credit decisions and reduce risks.
The main focus is to increase productivity by reducing the manual work in all the areas of underwriting and viewing all information to increase the productivity. The prospectus gains a full view by the credit officers in context of making better decisions.
Facts on integrating the Commercial loan Software:
Lending for Commercial businesses is about producing the economic benefit by funding the enterprises, ensuring that the lender can make the profit and sustain the share value in the process. The manual tools for the same can result in poor underwriting standards, increased cost and inefficient time management.
The banks still use old manual paper based loan approval procedures that are now faulty due to enlarged customer base. This results in a faulty internal data management system, even spreadsheet results in cumbersome output for the most commonly used underwriting method since it was not designed for the same.
Loan decision mechanism:
The important step in loan decision making is the collection of the financial and business related information from the customer and manual entry and reentry of the documents into the lender’s document can increase the chances of inaccurate data being recorded.
Thus Automation and introduction of Loan Decisioning software mitigates the inconsistency of collection of financial data and other related information. Application program interfaces (APIs) can help in digital onboarding of new client base and existing customer data straight to the lender’s loan origination platform.
Thus to mitigate the risk and improve the turnaround by automating credit risk results, the automated loan system software uses the same technique to apply the same criterion everytime and spots issues faster.