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Supporting Digital Loan Schemes in COVID-19

20 May 2020

COVID-19 pandemic is affecting aspects of our lives in many different ways. As the UK Government is supporting businesses during these unprecedented times, our priority is to reduce any negative effect and help both businesses and individuals to reinforce loan application schemes/ digital loan schemes:

  • Coronavirus Business Interruption Loan Scheme (CBILS)
  • Bounce Back Loan Scheme (BBLS)
  • Coronavirus Large Business Interruption Loan Scheme (CLBILS)

Our solution digitizes loan application requests supported by the government as well as other actions retail and challenger banks are supporting such as payment holidays, credit extensions, etc.

Context Situation

  • Banks in the UK have increased double the number of business loans for customers impacted by the COVID-19 lockdown in just a week.
  • More than £2.8bn of loans have been allocated to SMEs using CBILS by the government.
  • A total of 6,020 loans worth £1.1bn had been issued under CBILs.
  • Lenders have received over 36,000 completed loan applications, with approximately 30% having been approved– all of which are handled individually and manually.
  • Bounce Back Loan Scheme (BBLS) provides financial support to businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak and that can benefit from £50,000 or less in finance.
  • Government to back £330bn of loans to support businesses through a Bank of England scheme for big firms. There are loans of up to £5m with no interest for six months for smaller companies.
  • Businesses will be able to borrow between £2,000 and £50,000 with the cash arriving within days.

Business interruption loan schemes and fund:

1.1 IMPACT ON LENDERS – DIGITAL LOAN SCHEMES

1.2 IMPACT ON BUSINESSES

1.3 IMPACT ON LOAN APPLICATIONS

Our approach on Digital Loan Schemes

Our solution maps out the customer journey loan application through a step-by-step digital process where borrowers and lenders exchange all necessary information reducing manual tasks and pursuing effectiveness.

2.1 GOVERNMENT SUPPORT SCHEMES

We simplify BBLS, CCBILs & CLBILS application processes with an end to end digital journey.

How to apply

How to apply

How to apply

Banks Supported Actions for Individuals

During this unpredictable time, individuals and customers need support through some of their main assets such as:

  • Habitual housing
  • Real estate agencies affected by the economic activity of entrepreneurs and professionals
  • Rental housing
  • Personal loans
  • Credit cards with deferred payment or revolving
  • Non-mortgage loans

Most of the financial institutions and lenders has started to provide and support a wide range of solutions such as: payment windows, credit extensions or payment holidays.

Our objective is to offer an immediate digital financial solution to meet customer needs without compromising the future of their credit status. This is aimed at customers requiring Loan Payment Windows or Credit Extensions as a result of them losing their jobs, being furloughed or having a pay cut.

Due to the number of people impacted, there will be a significant increase of payment extension applications maximising the importance of Client-Lender relationship management. Implementing a queue-based triage platform to monitor these requests can alleviate and speed the process in a record time through digitizing main channels.

Our accelerator looks at both government and bank schemes adapting both automated processes to create an efficient method in one single centralised platform.

All Applications will be handled on one consolidated platform where internal approval processes will make easier eligibility and scoring thanks to a 360º view of the customer. As the application proceeds, requests will automatically be assigned to underwriters/application approval teams and communicate back to the customer accordingly

Benefits

Financial Institutions play a crucial role by accelerating loan application processes effectively structured in real time an in a matter of minutes.

Immediate:

  • Fist MVP in 2 weeks digitizing the end2end automated process reducing approval times
  • Managing eligibility and banking requirements within BBLS, CBILS, CLBILS
  • Addressing internal processing and governance requirements
  • Increase existing customer loyalty supporting payment windows and loan extensions
  • Eligibility and Loan Application process automation

Ongoing/Future:

  • Adding other entry channels (WhatsApp, CTI, etc)
  • Multiproduct Process Automation (Savings Accounts, Mortgages, Wealth Portfolio, etc)
  • Debt Collection Process Automation
  • Seamless core banking system integration
  • Address ongoing customer debt related processes
  • Can be expanded beyond CBILS facilitie

Our vision

Our aim is to deliver personalized and agile experiences for stakeholders which are constantly evolving in big and fast environments. Our devised processes deliver the additional support that lenders and customers require, reducing additional strain on resources and manual intervention, both internally and externally.

Our goal is to facilitate and accelerate the process for banks so that customers can be adhered to this type of government or individual extensions easily and online.

We work closely with clients to map end to end journeys to ensure we cover and optimise the entire customer experience. Consumer needs for borrowing have shifted dramatically due to the current crisis, so it is essential for financial institutions to act quickly and find suitable solutions.

Álvaro Pariente

Regional COO EMEA (UK & Benelux), Associate Professor, Hero Master, Salesforce Certified x4

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