Our client was seeking a system to automate loan origination and empower women economically through various financial products, including loans, savings, and insurance. The client (chose to remain anonymous) is a leading microfinance institution in Kenya, dedicated to providing financial services primarily to women in both rural and urban areas.
The Loan Origination Challenge
Despite its success, the client faced challenges in streamlining its loan origination process. The existing manual system was labor-intensive, time-consuming, and prone to errors, hindering the institution’s ability to serve its growing customer base efficiently. Additionally, the manual system lacked robust risk assessment mechanisms, limiting their ability to make informed lending decisions.
Challenge #1
- Lack of a Loan Origination System
Challenge#2
- Inefficiencies brought about by manual paperwork and redundant processes
Challenge#3
- Lengthy approval cycles
Challenge#5
- Unautomated workflows
The Solution
In early 2022, our client recognized the need to modernize its loan origination process to overcome its challenges and further its mission of financial inclusion. The client decided to invest in our Loan Origination System (LOS) to enhance their lending operations and improve customer service.
Solution#1
The client recognized the need for digital transformation.
Solution#2
They vetted us to partner with them to implement a cutting-edge system.
Solution#3
We then seamlessly integrated the technology and customer-centric processes to optimize their loan application, processing, and disbursement journey.
Implementation of the Loan Origination System
The implementation of the system was a multi-phase project that took place over 18 months ago.
The collaboration involved meticulous analysis of the client’s requirements and workflows, and we tailored the system to align with the highlighted specific needs.
The system’s integration was executed with minimal disruption, while comprehensive training ensured a smooth transition for the client’s staff.
The Results/Insights
Since the deployment of the system, our client has observed several notable improvements:
Result#1
Operational Efficiency
The implementation of the system has significantly reduced the time required to process loan applications. The client is now able to serve more customers and increase its loan portfolio.
Result#2
Accurate Risk Management
The client has eliminated the possibility of loans being extended to borrowers who pose a higher credit risk than initially assessed. All thanks to accurate credit risk assessment and accurate evaluation of the creditworthiness of borrowers. #predictive analytics.
Result#3
Significant Decrease in Default Rates
The advanced credit scoring model and risk assessment tools have led to a decrease in default rates and an improvement in the overall quality of the institution’s loan portfolio.
Result#4
1. Accelerated Loan Processing
The client now processes applications in a fraction of the time, reducing approval cycles and enhancing customer satisfaction.
2. Customer Experience
Customers now experience a more user-friendly and efficient loan application process, leading to higher customer satisfaction and retention rates.
Client Testimonial
Our partnership with NLS Tech Solutions has revolutionized our lending operations. Their system has transformed how we serve our customers, providing efficiency and convenience like never before.
– Current Client
Conclusion
The system has not only improved our client’s operational efficiency but also reinforced their commitment to financial inclusion. They are now empowering more women to access credit and financial services, contributing to the economic development of Kenyan women and their communities.
Ready to Take Your Loan Origination to New Heights?
Contact us today to schedule a demo. We will discuss your requirements and start transforming your loan management system.
