A guest article by Andreas Sonnleitner – Arvato Financial Solutions
Many companies are currently in urgent need of liquidity, and loans must be granted quickly. However, traditional loan review routines are rarely up to the current onslaught. In order to cope with the flood of applications to banks, the digitalization of the credit application process can help. You can find out here how you can now process loan applications at short notice.
For me privately, everyday life has changed a lot in the last weeks due to the corona virus. But for a whole range of companies, this time brings with it further challenges on a much larger scale. They are facing a crisis that threatens their very existence and can only be survived with short-term injections of liquidity. The state has recognized the danger of a wave of insolvencies and put together numerous aid packages – the available bridging loans and KfW-loans are already being applied for in large numbers.
As a result, the banks are now in demand with fast lending. Development banks and consumers are waiting for their decision. It is necessary to check the creditworthiness, solvency and neediness of freelancers, small businesses and self-employed people in the shortest possible time. The classic, manual check very quickly reaches its capacity limits here.
A glance at the account quickly provides security & delivers a basis for decision-making when granting loans
A major challenge is to comply with all the regulations despite the urgency required and not to neglect risk management. Therefore, it makes sense to consolidate the entire financial status of a customer in one overview and thus to be able to make a quick yet valid decision. At the required speed, this task can only be accomplished with automated processes that provide all relevant data on a daily basis and without further manual effort. The Digital Account Check from Arvato Financial Solutions can take over precisely this task. With the consent of the respective customer, it enables a view of all his or her connected accounts, sub-accounts or credit cards, regardless of whether they are private or business accounts. The customer’s online banking account provides access to incoming and outgoing payments. Based on the results, an overview is generated that can be used to quickly analyze creditworthiness. This enables banks to initiate a rapid and unbureaucratic credit allocation process and at the same time ensure that the checking and allocation process complies with all regulations.
With automated solutions, one avoids the time-consuming and costly manual viewing and checking of application documents for financing. At the same time, the applicant benefits from maximum convenience and a quick credit decision – after all, he or she does not have to send the relevant documents and account statements to the bank by post or e-mail. This is a contactless and media-free process that can be carried out digitally, especially in times of self-restricted branch operations, making work easier for both parties.
KfW also plays an important role in the current aid packages, but its loans must be processed through the customers’ house banks. Since KfW usually does not carry out its own checks, however, the house bank must make reliable risk assessments – especially since it has to bear 20 percent of the credit risk of KfW loans itself.
Digital credit processing is possible
Especially now, digital application lines offer the opportunity to quickly approve loans. With daily updated data, digitally and structured formatted. This ensures that the basis for decision-making is correct and default risks can be minimized.
In the long term, even after the current crisis has been overcome, the customer can be offered more convenience in the application process. Those who consistently take the necessary steps will be able to offer extremely consumer-friendly processes and thus secure real competitive advantages even after the crisis is over.
The author:
Andreas Sonnleitner is Senior Account Manager at Arvato Financial Solutions and supports clients in the area of Finance & Payment. With his expertise in both B2B – and B2C environments, he drives the development of innovative and individual solutions for his customers.
