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FINACLE ORIGINATION
Gain superior agility and efficiencies with enterprise origination solution
The recent global financial meltdown has
reshaped the landscape of the lending
business around the world. It has spurred
many new challenges. On one hand, banks
have to deal with the intense competition
for creditworthy customers, high non-
performing assets and rigorous regulatory
regimes. On the other, they must reduce
their costs while at the same time catering
to the sophistication demanded by
customers. To succeed in today’s fiercely
competitive market, financial institutions
need to streamline their operations to
serve their target markets cost-effectively
with increased speed and transparency.
They need to deploy robust credit
management processes to safeguard the
quality of their portfolios to
remain profitable.
However, most financial institutions are
still saddled with manual-procedures
and product-centric siloed origination
modules leading to sub-optimal credit
assessment and inconsistent processes.
Such operational setups result in high cost
of operations and delays in credit decision
making, thereby adversely impacting the
quality of customer service. Inconsistent
decision making and lack of robust credit
monitoring capabilities reduce the quality
of loan portfolio and put banks at risk of
higher defaults.
In today’s business scenario, it is vital for
financial institutions to adopt a unified
origination platform that can manage the
complete credit lifecycle across loan types
in a cost effective and flexible manner.
Finacle Origination Finacle Origination is a best-in-class
enterprise loan origination solution, which
simplifies the complete credit lifecycle,
across retail and commercial loans.
• Finacle Origination supports the
end-to-end credit lifecycle – from
customer application to credit analysis
and decisioning, followed by loan
onboarding and credit monitoring –
across various types of loans, ensuring
cost efficiencies and optimum control.
• It offers advanced rule-based
underwriting and integrated credit
monitoring capabilities, which empower
banks to control risk and achieve higher
credit quality to increase profitability.
• It is a host system-agnostic solution
with readymade integration adapters
and a robust integration platform to
facilitate rapid integration with external
credit bureaus and other enterprise
applications for seamless processing.
• The solution’s workflow management
engine offers a graphical user interface
to design workflow sequences and
facilitates straight through processing
(STP) to optimize business operations.
• An industry-leading user interface and
process-based screen design enables
rapid adoption and higher productivity.
It is an enterprise class origination platform
that is responsive to changing business
needs in loans, provides agility to the bank
to be competitive and helps banks meet
service levels without compromise, thus
helping them deliver substantial ROI.
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Functional architecture
Core Banking CRM
Enterprise Applications and External Credit Agencies
Infrastructure Layer
Product Rules
ApplicationCapture
QuoteManagement
Needs list
ChecklistAutomatedQuali�cation
Fees Inquiries
Inquires
Collaterals CreditScoring
ProjectFinance
Multi-leveldecisions
Credit Analysis
FinancialAnalysis
Non -FinancialMonitoring
Rule BasedPricing
ValuationReport
DebtAggregation
AutomatedUnderwriting
DeviationManagement
Pricing RulesFinancial Statementand Credit Scoring
Rules
Needs List andChecklist Rules Collateral Rules
Financial and Non -Financial
Monitoring Rules
Master Data Layer
Common Modules
Retail Commercial
Finacle Integration Platform
Credit Bureaus Valuation and Title Agencies
Finacle Origination
24/7 Multi- lingual
SingleSign-on
IntegrationFramework
AccessControl
Work�ow(BPEL) Reporting Audit Scheduler
FinacleSurroundSolutions
FinanzTools
Alerts
Alliances
RuleEngine
DocumentManagement
DocumentGenerator
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Key modules
Finacle Origination offers a flexible
platform to originate various types of retail
and commercial loan products, such as
mortgages, student loans, asset-backed
loans, consumer durable loans, vehicle
loans, project finance, syndication and
overdrafts. The solution offers extensive
parameterization, reusable business rules
and processes to help banks add new
products. The solution consists of two
broad modules:
a. Retail origination
b. Commercial origination
Key features
• Advanced underwriting capability:
The solution offers advanced rule-based
underwriting capabilities, including
point-based scoring, financial analysis,
related party exposure monitoring, and
deviation matrix to empower banks to
implement stringent credit criteria to
enhance loan portfolio quality.
• Real-time collaboration: The solution
empowers multiple users to collaborate
in processing a loan application in
real-time. This results in faster and
collaborative decision-making, thereby
improving customer service.
• GUI-based workflow: An advanced
workflow engine enables dynamic
workflows, which add value to the
entire origination lifecycle with features
like rule-based load balancing, holiday
balancing and Service Level Agreement
(SLA) management, reducing manual
intervention and improving Turn Around
Times (TATs).
Retail origination features
• Rule-based decision support: Finacle
supports rule-based decisioning through
bank-defined parameterization of
business rules based on operational
requirements, credit policies and
governing regulations. This automates
the decisioning process and helps
achieve consistency, speed and
objectivity in lending decisions.
• Multichannel origination: Finacle
Origination is a Service Oriented
Architecture (SOA)-based multichannel-
enabled solution, which enables banks to
originate retail loan applications across
channels. It can acquire prospect and
application data from multiple channels
and provide them with the application
status on request. This expands reach
to different customer touch points and
enables an enhanced and seamless
customer experience.
• Credit report and scoring: The solution
gives banks the flexibility to configure
a host of business rules for credit score
calculation, thereby enabling them to
benchmark loans against their credit
policy. In addition, robust interfacing
capabilities help banks obtain reports
from credit bureaus to gauge the
creditworthiness of loan applications.
• Multi-level approval: The system
supports a multi-level approval workflow
mechanism which allows an application
to be routed between underwriters at
different levels of hierarchy and then get
approved as per the credit authorization
matrix of the bank.
• Pre-qualification: The solution can
‘pre-qualify’ loan applications to ensure
that borrowers meet basic eligibility
criteria, before the commencement of a
detailed underwriting process.
• Relationship-based pricing: Leveraging
an enterprise rules engine, Finacle
Origination helps banks offer segment-
specific competitive pricing to optimize
the return on every portfolio. The
differential pricing – which could be
based on accounts, customers or channel
preferences – ensures that the loans
are priced optimally, enabling banks to
acquire good customers, while at the
same time balancing risk and return.
Commercial origination features
• Product bundling and group
applications: The ability to originate
multiple products in a single application
enables banks to effectively up-sell and
cross-sell to corporate customers. It
provides the ability to process multiple
products within a single application,
as well as the capability to selectively
approve or reject them. This results in
better tracking and faster application
processing.
• Debt aggregation: To provide a real
picture of the risk associated with a credit
application, Finacle Origination supports
the computation of a borrower’s total
direct and related exposure, using
bottom-up aggregation logic.
• Multi-limits management: The solution
supports creation of multiple limits
within a single application. Limits may
be created for a single customer or for
a group, after which users are provided
with a hierarchical view of all the limits
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and linked products. This gives banks a
holistic view of the exposure, helping
them track it at various levels and
manage portfolios accordingly.
• Financial and non-financial covenant
monitoring: Finacle Origination enables
banks to define and monitor key
financial and non-financial performance
indicators of corporate customers
during the entire borrowing lifecycle.
Any deviation is highlighted, based on
which the lending arrangement with the
borrower might be reviewed. This allows
banks to take timely corrective action
and safeguard themselves from the risks
associated with high value commercial
loans.
• Spreading templates and financial
ratios: The solution allows the
configuration of a Financial Statement
template for different industries and
customer segments for the calculation
of financial ratios for credit underwriting
and monitoring. It also supports the
capture of financial statements, such as
balance sheets, income statements and
cash flow statements.
• Checklists: Finacle Origination
supports checklists, which can be used
by banks to define the policies and
regulatory parameters that must be
adhered to while processing a credit
application. Any deviation from the laid
down policies and procedures is duly
highlighted to the approver.
Business benefits Enhanced operational efficiency
With Finacle Origination, banks get an enterprise-wide platform that unifies the loan origination processes across the retail and commercial banking products. This simplifies the business technology and reduces operational costs by improving efficiencies through standardization of processes.
Automation of multiple functions on a unified platform delivers Straight-through Processing (STP), which lowers manual intervention and errors. The solution’s workflow management engine empowers banks to design most suitable workflow sequences to optimize business operations.
The ability of the system to support multiple users collaborating on loan applications in real-time, shortens TAT and boosts efficiency and accountability by clearly dividing access and responsibility.
Improved credit quality
With advanced underwriting and extensive monitoring capabilities, Finacle Origination helps banks reduce risk by identifying potential bad loans early
and taking proactive corrective action. With a centralized platform and the flexibility to configure business rules for credit policies, operating guidelines and governing regulation, the time and cost to compliance with internal policies and regulatory requirements reduce significantly.
Business agility
The extensive parameterization-based solution design helps to originate various types of corporate and retail loan products. Banks can easily add a new loan type on the platform by reusing the common business rules and processes, reducing time to market significantly. The ability to originate multiple products in a single application enables banks to up-sell and cross-sell effectively.
Superior customer service
Finacle Origination provides a unified view of customer information and exposure to enable faster decisions and reduce the time for processing new loans thereby improving customer service. This multi-channel enabled solution enables banks to take the origination process to the customer’s channel of choice. Thanks to real-time notifications, banks can keep customers engaged more efficiently and transparently
throughout the origination lifecycle.
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www.finacle.comFor more information, contact [email protected]
©2016 EdgeVerve Systems Limited, a wholly owned subsidiary of Infosys, Bangalore, India. All Rights Reserved. This documentation is the sole property of EdgeVerve Systems Limited (“EdgeVerve”). EdgeVerve believes the information in this document or page is accurate as of its publication date; such information is subject to change without notice. EdgeVerve acknowledges the proprietary rights of other companies to the trademarks, product names and such other intellectual property rights mentioned in this document. This document is not for general distribution and is meant for use solely by the person or entity that it has been specifically issued to and can be used for the sole purpose it is intended to be used for as communicated by EdgeVerve in writing. Except as expressly permitted by EdgeVerve in writing, neither this documentation nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, printing, photocopying, recording or otherwise, without the prior written permission of EdgeVerve and/ or any named intellectual property rights holders under this document.
About Infosys FinacleFinacle is the industry-leading universal banking solution from EdgeVerve Systems, a wholly owned subsidiary of Infosys. The solution helps financial institutions develop deeper connections with stakeholders, power continuous innovation and accelerate growth in the digital world. Today, Finacle is the choice of banks across 84 countries and serves over 547 million customers – nearly 16.5 percent of the world’s adult banked population.
Finacle solutions address the core banking, e-banking, mobile banking, CRM, payments, treasury, origination, liquidity management, Islamic banking, wealth management, and analytics needs of financial institutions worldwide. Assessment of the top 1000 world banks reveals that banks powered by Finacle enjoy 50 percent higher returns on assets, 30 percent higher returns on capital, and 8.1 percent points lesser costs to income than others.