Effective deployment of a custom Loan Origination management system for ‘Leap Credit‘, to effectively handle the credit requirements, re-payment processing and loan documentations of thousands of loans every month across multiple states in the US.
Client Overview :
Leap Credit, LLC is a venture backed, short-term installment lender based out of Atlanta which offers an easy way for customers to get instant cash loans for their financial needs.
Problem
Development of a fully functioning loan origination & management system that can overcome the flaws of their current LOS, ‘Infinity’. Infinfity only addressed specific functions, not the entire process. It does not allowed them to take immediate advantage of bug fixes and functional improvements that are made in response to customer requests. Also, it does not cater for the increasing business requirements of the client in terms of expanding to different states and loan volume
Solution
Insight Consultants proposed to build and deploy a custom Loan Origination Systems for Leap Credit that can replace ‘infinity’ (their existing LoS) in the near term, which also allow for future enhancements based on Leap Credit’s specific requirements.
Result
Insight Consultants is successful in deploying a custom Loan Origination System for Leap Credit. A fully integrated LOS that is highly customizable and scalable which is currently managing thousands of loans every month across multiple states in the United States.
Business Objectives
Leap Credit’s key requirements for the Loan Origination software were as follows:
- Fully functioning dashboard
- New system should have the pre-approve and auto approve facility
- Consistently working e-signature facility.
- Should pick the correct rates and payment calculations for semi monthly pay frequencies
- Well created NACHA files.
Business Solution:
Initially Insight Consultants started with an assessment of the client’s needs. After analyzing the flaws in their current loan origination software, we developed a new application with key features such as:
- Loan Application: LCM will get the loan applications from Decision Cloud. The users of LCM will be able to view the loan application and make changes to the loan application.
- Payment Schedule: Payment Schedule will be a part of the loan application. When the loan application comes in from Decision Cloud, LCM will automatically calculate the payment schedule based on the pay frequency and the requested loan amount.
- Loan Document: The loan document will be generated when the loan application is created in the LCM. The loan document will be emailed to the borrower. A text message that the loan document is emailed to the borrower will also be send out. When a loan is adjusted, the existing loan document will be voided, and a new loan document will be generated and mailed out. The loan document will be integrated with Docusign. The borrower will be able to sign the loan document which will be emailed to the borrower.
- Underwriting: The underwriting module will not have any configuration screens in the first version of the LCM. The following underwriting rules will be applied to every loan that is created in the LCM. (a) If the loan application is from the direct marketing campaign, the loan will be automatically decisioned as Auto-Approved. (b) If the loan application is from any other campaign other than direct marketing and if the score of the borrower is higher than the cutoff score, the loan will be decisioned status Pre-Approved. (c) If the loan application is from any other campaign other than direct marketing and if the score of the borrower is lower than the cutoff score, the loan will be decisioned status Pending Decision.
- Customer Portal: The customer portal of the LCM will have the following features: Borrower Sign In, Consent page, Ability to view the payment schedule, Ability to view borrower’s personal information
- Manage loans: Manage Loans will list out all loans created in LCM
- Loan Statuses & Decisions
Result
Insight Consultants successfully developed a new LOS which now handles the credit requirements and loan documents of each state differently. It has a loan management system that connects with live bank feeds of borrowers so that the efficient repayment processing can be done. The client can triple their business in the first month after the new software launch and is in the path of continuous growth now.
About Insight Consultants
Insight Consultants is in the business of transforming enterprises and impacting lives through information technology-based solutions and by delivering services ethically. We specialize in digitizing the lending ecosystem. From general to specialized, prime to sub-prime, we have helped firms operating across the lending landscape reap the benefits of digitization. We offer end-to-end lending solutions with digital loan origination platform, credit assessment engine, business process automation and complete loan cycle management systems. We will help you transition from an offline way of working to a digitally streamlined one that include paperless operations, workflow-based automated decision-making, and credit scoring powered with insightful analytics.
