Why a Full-fledged Loan Origination System is essential for Co-operative Banks?
In almost all banking applications used by co-operative banks, Lending Process starts with Loan Account Opening. A good ‘Loan Origination System’ with end-to-end automation solution to automate the Loan Origination Process which results into approval of loans is not yet available to co-operative banks.
Today, the co-operative banks are ample funds for lending BUT the biggest challenge is to find a genuine loan customer. The financial position of bank is greatly affected turning of loans into bad loans. The inability of bank to screen out bad customers is mostly due to un-organised and non-automated loan approval process.