Newgen Software

Business Rules Management System (BRMS)

Enterprise Content Management allows businesses to streamline their content and organisational information through effective and reliable automation. It keeps up with the rapidly changing nature of data and procures strategies, tools, and methodologies to preserve, store, and manage it effectively. 

The benefits of deploying an ECM system are immense. Let’s have a look at some of them 

Benefits of Enterprise Content Management 

1. Enhanced Security

The digital world is always engaged in a battle between preservers and hackers. Files and critical information are no longer safe in a virtual space. 

In such a climate, the arrival of ECM is a godsend. All the information preserved by such a system is stored in a digital repository immune to all external threats. Only authorised users can access the content stored in the ECM. 

2. Compliance with Government Regulations 

The government is more active than ever in imposing its own as well as industrial regulations on different organisations. Failing to comply with such standards can lead to staggering penalties, ill repute, and loss of productivity. 

Unlike in the traditional days, compliance now needs to be proved based on the usage of information in the right way.With ECM, the company will have all the records, activity history, and every detail needed to ensure compliance to the laws mandated by the government. 

3. Increased Productivity 

ECM stores content and information in a well-organized, easily accessible manner. Authorised end users can therefore streamline their approach to using organisational content, and focus their attention on other, more productive tasks that require their attention. 

4. Reduced Expenses 

The deployment of a thorough Enterprise Content Management system eliminates the cost of using and managing paper documents. 

Moreover, it also reduces the need for a large workforce required to sift through vast webs of organisational information. The entire process becomes automated, reducing the overall costs required for the same job. 

Conclusion 

Loan origination is the process in which a borrower asks for a loan, and a lender either approves or rejects the application. The application process, from submission to funds disbursement or application rejection, is all involved in the origination process. Clearly, the loan origination system fundamentally explains the procedure for automating and controlling the application and disbursal operations.

Mentioned below are all stages in detail that a loan origination system follows –

1. Pre-qualification

This is the first step of the loan origination process, where the borrower must submit certain documents to the lender for review and approval. These documents can include ID proof, bank statement, credit score, etc. 

2. Loan Application

In this phase, the applicant fills out and applies. Usually, this application is paper-based, but in modern times, lenders believe in a paperless environment, so everything is shifting to electronic banking software.

3. Processing of Application

At this point, the credit department has received the application, so now their task is to check it for accuracy and genuineness. The loan origination system plays a pivotal role in helping lenders assess the reliability of the borrowers. 

A good loan origination system can help a loaner set up workflows for processing loans. It automatically identifies files lacking necessary fields, notifies the borrowers, and suggests updating the sales/credit department.

4. Underwriting

Once the application process is complete, and the borrower has provided all relevant data, the lender continues with the underwriting process. Lenders can check all data, including CIBIL scores, through a fully automated loan origination system. 

5. Credit Decision

The credit decision is the outcome of underwriting. At this point, the lender decides whether to approve or deny the application. Lenders nowadays make this decision with the help of loan origination systems. With AI-powered software, it is simple to evaluate various risk factors and ratings quickly.

6. Quality Check

This is the final stage of the application process, where the lender checks if the process is compliant and error-free. The application is verified one more time before making the final decision. 

7. Financing

The borrower receives the loan after the whole application process is smoothly approved. Loan origination systems can monitor funds and ensure that the appropriate papers are signed before and along with funding.

Conclusion

Recently, the demand for a loan origination system (LOS) among banks and credit unions has increased. The end-to-end method of the loan process, including the application, underwriting, approval, paperwork, pricing, funding, and administration, is automated and managed by LOS.