The solution provides a suite of fully incorporated lending solutions, including a proprietary credit risk scorecard for risk assessment, automatic processing for efficiency, regular updates in tandem with banking regulations, built-in triggers to keep out payment issues and around-the-clock-tech-support.

1. Context: A government-owned bank was
searching for an online lending software
with credit application processing and
loan management for payday lenders,
microfinance, and online lending
businesses. This SME lacked the working
capital and skills to develop their own
lending solution.
Recommended configuration included
several key creations:
• One of them is a proprietary credit
risk scorecard, which includes
performance indicators, such as
social network behaviors. This
system monitors activities that
would impact the risk profile of
these individuals.
• It also includes creation of new
loan application; monitoring
system recommendations with
ability to override decision rules, if
necessary. This system was able
to revise inputs, such as funds
transfer information, notes on
customer conversation and action
plan.
Lending solutions in a box
Better mitigation and
management of non-
performing loans
Improving risk
assessment and credit
decision accuracy
Optimal resource
allocation gives
lean resources and
limited time
Digitally catering to
regulatory and
compliance needs in
real time
Adopting the
right ready-made
IT solutions
Automated processing
to gain efficiencies
Around-the-
clock tech
support and
fully
managed
solutions
Proprietary credit risk
scorecard for optimal risk
assessment and pricing
Timely
updates in
tandem with
banking
regulations
Built-in
triggers to
keep out
payment
issues
Fully managed solutions
Challenges experienced by online lenders Case study
Maximization of
capital and operational
budgets utility
Client impact:
• Brought customization to processes
and workflow
• Integrated easily with other programs
• Enabled automation to processing
systems
• Developed a proprietary credit risk
score-card for risk assessment of
portfolios
Functionality overview
Loan origination
• Automatic information
processing and
decisions
• Loan underwriting
Collection
• Action planning
• Payment receipt
• Write-offs
Servicing
• Account management
• Payment receipt
Reporting
• Portfolio reports
• Risk ratings
• Collection ratings
Collateral management
• Collateral type
• Collateral valuation
• Revaluation
Front office
- Loan
application
form
- My account
Customer
information
Decision
Expert
scorecard for
automatic
scoring
Decision rules
for automatic
decisions
Included in the
solution:
Payment
processing
services
External
services —
online data
storage and
online customer
relationship
management
(CRM)
External
databases
Credit
bureaus
Information
Varun Mittal
Global Emerging Markets
FinTech lead
varun.mittal@sg.ey.com
Contact us
FinTech Hub
www.ey.com/sg/FinTechHub