Loan Management System Migration for
a Canadian Lender

Client Organization

Borrowell is a well-established lender based in British Columbia, Canada. They specialize in providing financial tools to underserved Canadians, helping them build credit and savings through Credit Builder Loans and Secured Cards. They work with over 800 referral partners across Canada, targeting customers with poor or no credit history. Their average loan size is around CAD 3,000, and they report payments to credit bureaus to improve borrowers’ creditworthiness.

Project Brief

The client was using a legacy loan servicing system that lacked the flexibility to accommodate new loan products and workflows. They needed a more agile solution to support future growth and scalability.

Business Needs And Challenges

The client’s key requirements included:

  • Supporting various loan products, including equity/deposit-backed loans.
  • Enabling features like turning credit monitoring on/off, setting up payment hierarchies, and handling auto-debits/payment failures.
  • Processing insurance claims and reporting to credit bureaus (Metro 2 format).
  • Migrating their existing loan portfolio of approximately 20,000 loans.

Solutions

We proposed a modern, modular loan servicing system (LSS) to address all the client’s needs.

  • Onboarding Efficiency: We’ve streamlined the onboarding process for new loans using an intuitive API and seamlessly migrated existing loans through an efficient ETL process.
  • Automated Loan Management: Our solution automates loan schedules, payments, delinquencies, and even handles ad-hoc payments, eliminating manual tasks and boosting operational efficiency.
  • Equity Account Management: Clients can now effortlessly create and manage equity accounts, complete with deposit and withdrawal
  • Dynamic Loan Restructuring: Through automation, scheduled fees are applied accurately, and loans can be restructured as needed, ensuring financial operations run smoothly and adapt to changing circumstances.
  • Regulatory Compliance: With our system, generating and reporting Metro 2 credit bureau reports is a breeze, ensuring full compliance with regulatory requirements and providing comprehensive insights into credit activities.

Benefits

  • Successful acquisition with no platform-related concerns during due diligence.
  • Launch of new loan products to expand their offerings and customer base.
  • Automated loan restructuring for improved efficiency in managing small, frequently delinquent loans.
  • Easy charge-off of dormant loans for cleaner books.
  • Reduced credit bureau reporting cycle time from 15 to 5 business days.

Tools and Technologies

aws_icon

AWS

Microservices_architecture

Microservices architecture

Configurable_services

Configurable services

API_architecture

API-based architecture

Robust_framework_automation

Robust framework for automation

Configurable_userinterface

Configurable user interface (UI)

Data_Service_Architecture

Data-as-a-service (DaaS) architecture

Extensible_payment_services

Extensible payment services

About LendFoundry

LendFoundry is a next-generation, cloud-based, AWS WAR (Well-architected review), SOC1 and SOC2 Type2 compliant, full-stack technology platform to enable digital lending.

Available as a SaaS offering on AWS, LendFoundry is built using a micro-services architecture and is highly customizable and scalable. Powered by API integration with 80+ traditional and alternate data providers and platforms, it can help digitize a lender’s entire loan lifecycle to deliver faster loans and also add new customer segments.

LendFoundry is a division of Sigma Infosolutions; a 20-year-old company headquartered in Irvine, California.