Flexible Loan Servicing Solution to Accommodate
Various Types of Loan Products
About the Client
Our client is a new entrant to the lending space in Southeast Asia. Founded by ex-Standard Chartered executives based out of Thailand, our client provides financial solutions that help underserved populations with Payday and other short-term forms of credit. The LendFoundry team got an opportunity to closely work with the client’s COO and CTO to understand their business plans and thus provide them with a solution to not just meet their current needs but also to accommodate their future initiatives.
Background
The client had to integrate multiple systems from multiple vendors. The Loan Origination System was to be sourced from a different vendor. The Loan Origination System was to get inputs from an in-house mobile app. The LOS had to feed loan data to LendFoundry’s Loan Servicing System. There were requirements for different regulators to which the client was reporting. Thus, the regulatory reports had to be in a specific format. Thus, the client required a robust and flexible system that could adhere to the requirements. Also, the client wanted to foray into providing loan servicing as a service to various other lenders, and thus the platform would have to support multiple lenders’ setups with data segregation. Our client, being bankers themselves, had a clear overview of the pain points in lending and evaluated several solutions available in the market, but they were unable to provide flexibility in configuration and accommodating business rules, which is a core proposition to the business.
Key Requirements
The client was looking for a Loan Servicing Solution (LSS) that would be flexible enough to accommodate various types of loan products without significantly changing the business process and also allow them to support large loan volumes.
Some of their key requirements were:
Proposed Solution
LendFoundry’s proposed solution would be able to support new loan products. It would generate and manage repayments as per schedule from the wallet and also allow multiple tenants on the platform for the same product. Some specific features are noted below:
Features Used in the Solution
The following features of LendFoundry’s Loan Servicing System were used to fulfill the client’s expectations:
Key Challenges
This implementation was challenging, as this was our first implementation in Thailand with local language support. The unique requirements, like white-labeled multi-lender support, PICO reporting requirements, a dynamic holiday calendar, and payment, were not available out of the box. There were significant changes made to the platform to support the unique needs of this implementation. Given our technical architecture, platform configurability, agile delivery, and good support from the client’s business and technology teams, we were able to complete this implementation in 4 months.
Some of the key benefits realized by the client include:
About LendFoundry
LendFoundry is the next-generation, cloud-based, SOC1 and SOC2 Type 2 compliant, full-stack technology platform to enable digital lending.
Available as a SaaS offering on AWS, LendFoundry is built using a microservices architecture and is highly customizable and scalable. Powered by API integration with 80+ traditional and alternative data providers and platforms, it can help digitize a lender’s entire loan lifecycle to deliver faster loans and also add new customer segments.
Key Modules: Borrower Portal, Broker Portal, Dealer Portal, Merchant Portal, Lender Portals, Loan Origination System, Loan Servicing System, Loan Management System, Business Analytics
