Gain superior agility and efficiencies with enterprise origination solution. Finacle Origination

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1 Finacle Origination

2 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 this 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. Finacle Origination 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.

3 Functional architecture Finacle Origination Retail Commercial Quote Management Automated Qualification Rule Based Pricing Valuation Report Automated Underwriting Debt Aggregation Checklist Financial Analysis Non -Financial Monitoring Project Finance Finacle Surround Solutions Finanz Tools Alerts Application Capture Product Rules Needs list Credit Analysis Pricing Rules Deviation Management Financial Statement and Credit Scoring Rules Common Modules Fees Master Data Layer Infrastructure Layer Inquires Inquires Needs List and Checklist Rules Multi-level decisions Collateral Rules Collaterals Credit Scoring Financial and Non -Financial Monitoring Rules Alliances Rule Engine Document Management Document Generator 24/7 Multilingual Single Sign- on Integration Framework Access Control Workflow (BPEL) Reporting Audit Scheduler Finacle Integration Platform Enterprise Applications and External Credit Agencies Core Banking CRM Credit Bureaus Valuation and Title Agencies

4 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 multichannelenabled 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 prequalify 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 segmentspecific 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.

5 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 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.

6 About Infosys Finacle Infosys Finacle partners with banks to simplify banking and arms them with accelerated innovation to build tomorrow s bank, today. For more information, contact finacleweb@infosys.com Infosys Limited, Bangalore, India. All Rights Reserved. Infosys believes the information in this document is accurate as of its publication date; such information is subject to change without notice. Infosys acknowledges the proprietary rights of other companies to the trademarks, product names and such other intellectual property rights mentioned in this document. Except as expressly permitted, 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 permission of Infosys Limited and/ or any named intellectual property rights holders under this document.