IBS Journal June 2015


compliant are randomly quality assured before issuance.’ Daragh O’Byrne, VP for marketing at


Nucleus Software, believes that, at the high- world face the same challenge, in other


involved in making credit decisions while improving the quality of those decisions. Or to put it a better way – streamlining and automating the process while using advanced technology to attempt to look into the future.’ As well as reducing process- ing costs, this hopefully also reduces future losses associated with bad debts. He also feels lenders are grappling with the twin challenges of mobile and alternative sourc- es of loans (such as peer-to-peer lending). O’Byrne feels speed is becoming essen-


tial. ‘With customers continuing to make purchases online, we see the need to han- dle requests for loans online/via mobile. The implications of this are profound. In addition to the tremendous volume of loan applications this approach could generate, today’s customers expect answers and ser- vice in real-time. Today’s consumers, when they become tomorrow’s online purchasers of loans, will demand approval in seconds – and if you can’t provide it your competi- tor will.’ Joe Dombrowski, director of product


management, lending solutions, at Fiserv, draws a distinction between the priori- ties of real estate lending and other forms


For the latter, the focus, not surprisingly, is on improving the borrower experience by


the web and mobile channels. In real estate servicing, Dombrowski


feels the main area of automation focus is still in the default space. ‘This includes improved automation around loss mitiga- tion, option decisioning and better man- agement of borrower interaction both by phone as well as digitally. Servicers are no longer interested in using standalone default software products, they want that technology deeply embedded and readily available in the servicing solution they are also using for performing loans.’ There are some well-established spe-


-


tems. Three of these are Indian, comprising Nucleus Software, with FinnOne, Intellect Design Arena (Polaris, as was), with Intel- lect Lending, and 3i Infotech, with Kastle


26 What is on lenders’ agenda?


‘Changing regulations, a multi-channel approach, the redesign of end-to-end processes to bring more and more work to the end customer or front office, and new


technologies to make traditional data entry obsolete.’ Jo Triest, Davinci


Universal Lending. Joining these of late is a company called Pennant Technologies, which is busy in the Middle East (see p30).


have often sold their software alongside mainstream core banking systems, per- haps as a substitute for the more general lending modules of the bigger suppliers. Pennant is a prime example, with its penn- Apps software (which includes lending but a number of other areas as well), largely starting out as a complement to Misys’ old IBM iSeries-based core banking system, Equation (now Fusionbanking Equation). In fact, the sales of the established


been somewhat lacklustre in the last few years, perhaps emphasising the fact that many customers are focused on the front- end rather than a rip and replace for the full lending lifecycle (although Nucleus, Pola- ris/Intellect Design Arena, and 3i Infotech have had their separate corporate chal- lenges as well, which could in part explain the depressed sales). JMR Infotech is another Indian suppli- er but with an emphasis on only the loan origination portion. The company launched its Lead to Loan system in 2011 as part of a strategy to develop specialist solutions in niche areas of processing that were deemed not adequately covered by stand- ard core banking systems. The product is a three-tier application built on J2EE archi- tecture, with support for Oracle Weblogic, IBM Websphere and all standard Java appli- cation servers. JMR Infotech, which also makes a good living as a partner of Oracle FSS for Flexcube, had a breakthrough for Lead to Loan in 2014 at First Finance Plc,


© IBS Intelligence 2015 www.ibsintelligence.com


More recently, Guaranty Trust Bank in Nige- ria went live with Lead to Loan. At the back, the system interfaces to the ICS Banks core banking system from ICSFS. In Europe, Sopra Banking Software


has the ComponentBanker system, which was developed by Netherlands-based Business Architects, and the older, large-


has also been doing development in the - ly beyond the loan origination support of


downs on loans, repayments and chang- ing loan contracts. Sopra has also been building a mobile app to allow customers to generate loan applications from multiple


with both ComponentBanker and Evolan Lending. SAP’s Loans Management system has


around 100 sites across the globe and is sometimes taken alongside this supplier’s core banking systems – Deposits Man- agement or the older Deposits. Its recent takers include Adarsh Credit Co-operative Society and Saudi Arabian Monetary Agen- cy (see p16). Often, there remain a fair few country-


this is mirrored on the vendor side, with -


tain markets. The UK and France are cases in point, with a clutch of suppliers in each that have made their living selling only in these domestic markets. UK players include the likes of Nostrum, Phoebus and Sword Apak (albeit with the latter having a French parent). It is a similar story in the US, where


overview: lending


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