Lending & Credit Decisioning · Use case

Service consumer loans end to end

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Short answer

Most of a loan's life happens after the decision. Servicing covers schedules, repayments, changes, statements, arrears, hardship and collections — much of it regulated and all of it visible to customers.

What this use case is

Most of a loan's life happens after the decision. Servicing covers schedules, repayments, changes, statements, arrears, hardship and collections — much of it regulated and all of it visible to customers.

Who builds this

Consumer lenders
Neobanks with credit
Retail finance
Lenders replacing legacy loan systems

What your customer sees

  1. 1A clear schedule
  2. 2Automatic repayments
  3. 3Self-service changes
  4. 4Supportive contact if they fall behind

How Lending & Credit Decisioning solves it

1

Loan booked with schedule

Loan booked with schedule

2

Repayments collected and allocated

Repayments collected and allocated

3

Changes processed: early repayment, date changes

Changes processed: early repayment, date changes

4

Statements and notices issued

Statements and notices issued

5

Arrears detected and contact started

Arrears detected and contact started

6

Hardship options and collections managed

Hardship options and collections managed

Want to have

  1. Amortisation and schedules
  2. Repayment collection and allocation
  3. Early settlement
  4. Statements and regulatory notices
  5. Arrears management
  6. Hardship and forbearance tooling
  7. Audit trail

Optional

  1. Customer self-service
  2. Debt-sale support
  3. Communication automation

Design decisions

Operations

In-house team
Outsourced servicing

control versus cost.

What to put in your RFP

Products

  • loan types
  • terms

Money

  • collection
  • allocation

Customer

  • notices
  • self-service

Arrears

  • hardship
  • collections

Reporting

  • portfolio
  • regulatory

Commercials

  • per active loan
Add these to an RFP

How to evaluate providers for this use case

  1. 1Regulatory notice support in your markets
  2. 2Hardship tooling
  3. 3Reporting

Pitfalls

  • Treating collections as an afterthought
  • Notices that do not meet local rules
  • Poor allocation logic

What providers will ask you

  1. Loan products and volumes
  2. Markets
  3. Current servicing setup

Other Finlane categories that cover parts of this

This use case is solved mainly with Lending & Credit Decisioning. These categories cover specific parts of it and can be tendered alongside it.

Core Banking & Ledger

Loan accounts on your own ledger

RegTech & Compliance Ops

Complaints and regulatory reporting

Frequently asked questions

Other Lending & Credit Decisioning use cases

Launch an embedded BNPL product

Offer split-pay or installment credit at checkout with decisioning, disbursement and servicing bundled.

Underwrite SMB working capital

Combine open banking, accounting and bureau data to score SMBs and originate flexible credit lines.

Build a credit card program on modern rails

Combine a card issuer with a decisioning and ledger engine to launch a revolving credit product.

Scope service consumer loans end-to-end with Lending & Credit Decisioning providers

Scope this use case