The existing lending modules in a core banking system were originally created to cater to specific use cases and facilitate the straightforward and linear lending practices that met the limited requirements of customers. However, as technology continues to advance and there is a growing demand for customised lending products, the outdated banking technology has become a constraining element in the entire lending process.
There is a perpetual debate regarding the need to enhance existing workflows within the current core banking framework. However, numerous limitations arise in such circumstances. Incorporating additional modules onto the existing core system leads to increased complexity, elongated timelines, and excessive administrative burden. Eventually, it becomes impractical from a business perspective to persist with lending operations solely on the core system. Introducing a dedicated lending system emerges as the sole viable solution.
A specialised lending platform provides banks and financial institutions with modularity, composability, and scalability for their lending operations. These institutions aim to collaborate with FinTechs and loan sourcing companies to offer a wide range of personalised loan products to customers. Moreover, this system assists financial institutions in overcoming regulatory challenges by ensuring strict adherence to established protocols.
In this whitepaper, learn how a specialised lending platform can future proof your lending operations.