Solution Sheet

Profitable Small Business Lending Improve Profitability by Making Your Small Business Lending Scalable & EfficientImprove Profitability by Making Your Small Business Lending Scalable & Efficient

Lengthy on-boarding time and high costs associated with Small Business Lending are comparable with high value commercial loans. Several challenges stand between Banks and efficient small business lending. Some of these challenges are:

Why Banks Struggle with Small Business Lending

Lengthy on-boarding time as it can take days or weeks for due diligence checks, further aggravated by manual hand-offs

No defined process for small business loan renewals and modifications

Delayed processing of small business loans that do not fall under policy guidelines

Unstructured sub processes such as third party appraisals, fees management, etc.

High volume of small ticket sized loan applications that entails similar due diligence in terms of time, effort and cost as a high value loan applications

Tough to manage cost vs revenue ratio

Manual management of- customer data, credit & risk analysis, credit approval note creation and coordination with decision makers, manual check on central bank compliance policies.

Manual management of documentation, collateral management, covenant monitoring and referral policies

Difficult customization of lending process due to diversity of small businesses

Small Business Lending is a complex process. The risk associated with small business loans is high and assessing creditworthiness of small businesses is often a challenging task due to information asymmetry. These loans are often associated with "piles of paperwork", high turnaround time and massive transaction costs. These reasons deter Banks from venturing into the Small Business Lending space and emphasize the importance of an efficient lending work flow tailored for small business loans.

Overview

Optimizing Customer On-Boarding

Customer On-Boarding is a critical step in the lending cycle. Despite digitization, the customer on-boarding process remains a time and cost intensive affair. In order to mitigate this and to improve customer experience, banks need to pro-actively strategize a simplified and seamless on-boarding experience.

Customer On-Boarding

Automation and digitization of end-to-end small business on-boarding and loan origination process with a Configurable & Unified Platform with seamless integration capability to core systems is the key.

Data Management

Managing customer data is critical for banks. A majority of banks still struggle to consolidate customer data with fragmented information scattered across disparate applications. Banks need to simplify the collection, storage and utilization of customer information.

Unified View of Customer

Given the patchwork of applications that banks have, they do not have a single repository to store customer information. This leads to poor customer experience as customers have to repeat basic information every time they transact with the bank. Moreover, there is a dire need for a single view of customers as banks tend to maintain siloed customer information across products availed and applications.

Regulatory Compliance

Compliance is central to on-boarding customers. Banks need to do due diligence checks to ensure KYC, Anti-Money laundering, FATCA and other regulatory norms compliant. Compliance keeps changing and most banks are still stuck with hard coded rules which makes it difficult to make faster transition to new norms. The result of course is manual hand-offs which substantially increases client on-boarding time, specifically for corporates and small businesses.

Multi-Channel On-Boarding

Customers today expect a digital on-boarding experience, one that is device agnostic and seamless. They want faster transactions, self-service portals, transparency and meaningful engagement with their banks. Banks need to provide a centralized on-boarding experience to customers that offer a unified view of customer information can offer customized product offerings.

Automation Benefits of Customer On-Boarding Process

Enhanced life-time value of customers

Reduced dependence on manual processes, saving time and costs

Minimized data errors and unified view of customers with centralized data storage

Contextual customer engagement in real time

Competitive service offering

Newgen Small Business Lending solution automates and streamlines the end-to-end on-boarding process and lending cycle for the full range of small business loan types–from prospecting and origination to underwriting, disbursement and servicing. The solution provides a simple and easy to use interface for the capture and analysis of small business loans. It is built on Business Process Management framework to enable credit origination, approval and monitoring in a paperless and electronically driven workflow environment.

Newgen Small Business Lending accelerator is a packaged application for automating small business lending that comes with configurability, thanks to the underlying BPM framework. It brings best of both worlds (buy vs build) that seamlessly enables a bank to meet 100% automation requirement and connects with all external systems to act as a unified lending automation platform.

Newgen's Small Business lending automation software allows banks to differentiate themselves from their competitors. No matter how different, how complicated process a bank follows, the solution seamlessly automates it.

Newgen Small Business Lending Automation Software

CoreBanking

WorkingCapital

Other SmallBusiness Loans

TermLoan

RealEstate

SBA

Treasury CRM BureausOther

Systems

Solution Accelerators Ready-to-use, tried & tested, domain-specific business

application components for each loan segment

Configuration LayerProcess - Forms - Workflow - Rules - Masters - Dashboards - Document Management

Document Management System

Branch Web Portal Third Party AgentsMobility

Seamlessly on-board small business customers from any channel

LOAN ORIGINATION SYSTEM

INT

EG

RA

TIO

N

INT

EG

RA

TIO

N

DOCUMENT MANAGEMENTImaging - Document Upload - Version Management - Sharing - Retention

BLACKLIST

FRAUD DATABASE

WATCHLIST

CREDIT BUREAU

ONE OBLIGER

DEDUPE

COLLATERAL DATABASE

NAICS

Prospecting and Lead Generation - Efficient lead management and handling of cross and up-sell opportunities

Pre-qualification - the solution facilitates pre-qualification of small business loans

Credit Scoring - Easy credit scoring with bare minimal financials and data from the borrower

Straight Through Processing - Straight through processing of loan applications with a Credit Decisioning engine that lies atop the solution.

Credit Analysis and Underwriting - Comprehensive credit assessment tools that take into account financial information, ratio analysis, account conduct and pricing

0360 Risk Management - Complete due diligence through Peer Group Analysis, Trade Checks, real-time pipeline view, automated rules & standardized processes

Document Management - Generate Loan Package with small business loan documents and security instruments in pre-defined bank specific templates

Collections and Provisioning - accounts and linked accounts Efficient management of delinquentthrough incessant follow-ups and history logs

Solution Highlights

Streamlined Small Business Lending process with Newgen solution

Prospecting

Underwriting

ApplicableData Entry

Customer Acceptance &

Selection

CustomerSign Off

Decision & Approval

Documentation

Generation ofOffer Letter

LoanBooking

Servicing

Disbursement

Review

JACK HENRY

SALESFORCE

EQUIFAX

LASERPRO

CORELOGIC

FIS

FISERV

BAKER HILL

CREDIT DATAMART

WORKFLOWAutomated Routing - Exceptions - Escalations - Decisioning - Tracking - Reports

Origination

With Newgen's Small Business Lending solution, each small business loan type can be easily managed from end-to-end i,e. from prospecting, document capture, digitization, origination, approval, closing and funding to servicing. The solution ensures paperless processing of credit applications with a robust built-in document management system. Further, the solution ensures seamless adaptation of unique loan products through its embedded rules engine.

Disburse Loans at Accelerated Pace

Lead Management

Lead Capture Lead Assignment

Tracking & Follow Up Lead Conversion

360 Degree Customer View

Customer Accounts Relationship Details

Group & Sister Concerns

Service Request Management

Origination

gnic i v r eS���

Document Checklist

Product Setup

Pricing Setup

Application Processing

Collateral Capture

Integration with External Credit Bureaus

Offer Letter Generation

Appeals

Closing Documents

Funding

Account Monitoring

Account Profitability

Covenant Monitoring

Portfolio Monitoring

Business Activity Monitoring

Dashboards

Reports

Change in Pricing

Change in Collaterals

Rescheduling

Restructuring

Review Renewals

� Financial

Spreading

Credit Analysis

Scoring and

Rating

Risk

Management

Credit Automation

Memo

Generation

Decision and

Approvals

gnitcepsorP

Faster Customer On-Boarding - Deliver a seamless on-boarding experience to your customers to enhance their life time value. Newgen's Small Business Lending solution provides a seamless omni-channel experience, ensuring ease of use, convenience, intuitive assistance and auto-KYC verification which significantly decreases on-boarding time of small businesses

End-to-End Risk Management - With methodical portfolio monitoring, automated tracking of collaterals and covenants, comprehensive reporting and standardized lending processes, leading global organizations are realizing the benefits of end-to-end risk management delivered by Newgen Small Business lending solution

Greater Selling Opportunities - Gain better insights into high profile accounts to enhance profitability, create cross-sell opportunities and underwrite loans competitively. The system ensures all touch points with the customers are streamlined to power strong customer relationships

Unprecedented Operational Efficiencies - Eliminate duplicate data entry, reduce error rates and policy exceptions, enable dynamic staffing, business rules driven underwriting and documentation, and streamline approval cycles for faster transactions. The resultant speed creates a distinct competitive advantage in a fiercely fought marketplace

Compliance and Process Standardization - Close monitoring of process Service Levels across the lending lifecycle–from initiation to disbursement ensures compliance and risk optimization. The system ensures that all loan documents and covenants are tracked and reviewed automatically in accordance with credit policy and compliance. It allows generation of custom reports for increased oversight

Sales & Marketing

IncreaseProfitability

ReduceBusiness Risk

IncreaseBusiness Agility

IncreaseCustomer Satisfaction

BusinessValue

Business Benefits

SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT www.newgensoft.com

About Newgen

Newgen Software is a vendor/provider of Business Process Management (BPM), Enterprise Content Management (ECM),

Customer Communication Management (CCM), Document Management System (DMS), Workflow and Process Automation

software. The company has a global footprint in over 60 countries with large, mission-critical solutions that have been deployed in

Banks, Insurance firms, BPO’s, Healthcare Organizations, Government and Telecom Companies.

Newgen's Quality Systems are certified against ISO 9001:2008 and Information Security Standard, ISO 27001:2013. Newgen has

been assessed at CMMi Level3.

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