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 finacle@edgeverve.com

©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.