Fintech Case Study

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About the customer

Our customer here was a rapidly growing financial technology company providing digital lending solutions to its users. The client offers a faster, more efficient, and more user-friendly borrowing experience to its customers.

The company leverages new tools and resources to better serve its customers, including online loan applications, automated underwriting systems, and mobile apps that enable borrowers to track their loans and make payments on-the-go.
The company was able to streamline its operations and reduce costs through digitization, which passed on to the borrowers in the form of competitive interest rates and flexible repayment options.
As one of the leading loan lending companies, our client was able to provide its customers with the best possible borrowing experience, growing in scope and customer base in a short span.

Industry

Fintech

Technologies

Project Duration

Project Details

The client was seeking a solution to handle a high volume of loan applications and help with the loan processing time and efficiency of the process. Furthermore, the company’s existing processing system was prone to errors and need some fixing.

Problem

The customer was experiencing a high volume of loan applications and lacked the mechanism to handle such overloads. This resulted in long processing times and delays in loan approvals.

The company’s loan officers received an average of 50 loan applications per day, which proved to be an overwhelming number and led to processing delays.
The high volume of loan applications led to processing times of up to 2 weeks, which is much longer than industry standards.
This, in turn, resulted in decreased customer satisfaction and loss of business.
The company’s customer satisfaction rating had dropped by 15% over 6 months due to delays in the loan processing process.
A total of 10% of the company’s business was lost to competitors who offered faster loan processing times.

The company’s existing loan processing system was prone to errors. This could have resulted in incorrect loan decisions for up to 50 loan applications per day.
The company realized that a way must be found to improve the loan processing time and enhance the customer experience.

Our Approach

On average, loan applications processed manually could take up to 10 business days, while automated loan processing systems can process loan applications in under 24 hours.
With an automated loan processing system, the loan approval rate is expected to increase by up to 10%, as the machine learning algorithms will be able to identify patterns in successful loan applications and make more accurate decisions.
The implementation of an automated loan processing system can save the company up to $500,000 per year in employee salaries and benefits, as fewer loan officers will be required to handle loan applications.

The customer-facing portal is expected to reduce the time required for loan application completion by up to 50%, as customers will no longer be needed to visit the company’s physical locations or wait on hold for customer service support.
An automated loan processing system can reduce the overall loan processing time by up to 90%, as loan officers will only need to review and manually process complex loan applications that cannot be handled by the automated system.
The implementation of an automated loan processing system would reduce the overall loan processing cost by up to 30%, as fewer loan officers will be required to process loan applications, and the risk of errors and legal issues will be significantly reduced.
An automated loan processing system would improve the company’s loan approval speed and accuracy, leading to increased customer satisfaction and retention rates.

Benefits

The new automated loan processing system reduced the average loan processing time from several days to under 24 hours, resulting in an 80% improvement in processing time.
The improved loan processing time resulted in a 50% increase in loan approvals, reducing the number of loan rejections and resulting in more revenue for the company.
The new system also reduced the risk of errors in loan decisions by implementing advanced machine learning algorithms, resulting in a 40% reduction in the number of inaccurate loan decisions.
The customer-facing portal provided customers with real-time access to their loan application status, reducing the need for customer support inquiries and improving customer satisfaction by up to 90%.

The portal also allowed customers to upload required documents and e-sign loan agreements, reducing the need for manual paperwork and improving the efficiency of the loan processing process.
The new automated loan processing system was fully scalable, allowing the company to handle increased loan volumes without any additional infrastructure investment, resulting in a 60% reduction in operational costs.