Financial Services
Revolutionising lending: Key benefits of cloud-based loan management systems
A loan management system is a powerful digital solution that streamlines the entire lending process, from application to closure. It enables banks, credit unions, mortgage providers, and other financial institutions to swiftly collect and verify customer information, issue new loans, and efficiently manage existing ones.
With automated interest rate calculations and seamless loan tracking, these platforms enhance accuracy and decision-making. Most importantly, they offer advanced reporting and analytics tools, equipping lenders with real-time insights to drive smarter financial strategies.
Lending is rapidly changing. The change is driven by a variety of cloud-based digital lending solutions and is fuelling increased competition, which calls for continued innovation and advanced features to drive better services and greater market agility. Whether you’re managing mortgage, commercial, or consumer loans, Infosys BPM digital lending solutions offer comprehensive, technology-driven offerings — powered by AI, RPA, and machine learning — to ensure your operations stay efficient, secure, and future-ready.
Digital lending solutions: Transforming the industry
Legacy lending processes are slow, expensive, and prone to errors. Cloud-based digital lending solutions address these shortcomings by offering a seamless, end-to-end experience, from online loan applications to automated approvals and real-time updates. Fuelled by AI and machine learning integration, this transformation spans consumer, commercial, and mortgage lending. The shift away from paper is evident, with over 200 million digital loan applications processed globally in 2023.
By eliminating hardware dependencies and reducing IT maintenance, digital lending solutions lower costs while improving operational agility. The pay-as-you-go model ensures lenders only pay for the resources they use, optimising cost efficiency. Automation also enhances productivity by freeing up staff to focus on strategic initiatives.
Reaching new markets, expanding portfolios
With worldwide IT spending predicted to grow by nearly 10% this year, leading banks and fintech firms across North America, Europe, and Asia-Pacific are rapidly adopting cloud-based lending management. Cloud-based lending management systems can handle increasing loan volumes without significant infrastructure costs, allowing lenders to expand their portfolios efficiently. They support various loan types, from personal and business loans to mortgages and microfinance, enabling diversification.
The global push for financial inclusion is further expanding market opportunities, particularly in emerging markets, where 1.7 billion adults lack formal access to loan services. Lending management systems enable financial institutions to reach these underserved populations, provide remote access to credit, boost financial integration, and expand portfolios. Lenders can reach new markets having the scalability, flexibility, and analytics needed to optimise performance and adapt to market changes.
Automated loan processing with AI
Loan management systems streamline the entire loan process by automating key tasks. Depending on the lender’s needs, key systems can handle specific parts of the process or manage everything from start to finish:
Loan origination
A cloud-based Loan Origination System (LOS) automates application processing, enabling borrowers to submit documents digitally. AI-driven data extraction and verification reduce manual input, expediting approvals while ensuring accuracy.
Underwriting
AI-powered underwriting automates credit risk assessment, processes vast borrower data instantly, and enhances decision-making. Continuously trained on historical data, it improves predictive accuracy, identifies risks early, and streamlines loan approvals.
Disbursement
Automated disbursement processes ensure that funds reach borrowers quickly and securely. Cloud-based lending management systems support various loan products, repayment schedules, and payment modes, providing greater flexibility and convenience.
Repayment and collections
AI-driven repayment systems enable borrowers to set personalised repayment cycles, improving adherence to schedules. Automated reminders and notifications reduce late payments, enhancing recovery rates and minimising defaults.
Key benefits of AI in loan management
AI-driven analytics offer deeper insights into borrower behaviour, enabling lenders to tailor loan offerings and mitigate risks effectively.
Advanced data management
Centralised cloud repositories store and organise loan documents efficiently, enabling seamless access to templates, automated pre-filling of consumer information, and instant generation of credit memos and risk analyses.
Faster approvals
Cloud-based systems analyse borrower data in real-time, allowing lenders to make instant decisions. This speeds up the loan approval process and ensures faster fund disbursement, meeting borrower expectations for quick financing.
AI-powered credit scoring
Traditional credit scoring models rely on limited data points, but AI-based models analyse vast datasets, identifying hidden risk factors and improving lending accuracy. These advanced models enhance financial inclusion by assessing non-traditional credit indicators.
Fraud detection and prevention
Lenders can stay ahead of changing regulations such as GDPR, Basel III, and Dodd-Frank. AI algorithms detect fraudulent activities by analysing patterns and anomalies in loan applications and transactions. By identifying suspicious behaviour early, lenders can strengthen cybersecurity measures and minimise financial crime risks.
Personalised borrower insights
AI-driven systems analyse borrower preferences and financial habits, enabling lenders to offer customised loan products and financial advice. This enhances customer satisfaction and strengthens borrower-lender relationships.
