⁠🎉Celebrating 25 Years of Tech Excellence and Trust - Learn More

A Loan Management Platform Reduced Application Processing Time from 3 Days to 4 Hours

How did we develop an all-encompassing loan management system that empowers lenders with a hassle-free lending process, fund management, field inspection, and risk prevention solutions?

Industry

Financial Services

Country

United States

Project Duration

14 Months

Development Method

Agile

Team Size

6 Experts

Project Brief

The project was about creating a cloud-based software system integrated with state-of-the-art features that would be accessible through web and mobile devices. It offers lenders real-time visibility into ongoing construction projects, powered by independent fee inspectors, construction fund management tools, and risk assessment services. Stakeholders should be able to monitor the process, manage documents, and make informed decisions, among others.

Client Background

The client, a Los Angeles-based direct private lender, used to find it incredibly difficult to manage construction projects funded through their business. So, they needed to build a sophisticated loan management software system that can aggregate and analyze complex construction project data in real time for acute fund and risk assessments.

A Loan Management Software System

Project Goals

Having a decade-long experience in providing bespoke financial software development services, our aim was to build a secure, high-performance, and reliable platform that could effectively handle diverse residential, commercial, and land development projects while mitigating risks associated with project completion and loan disbursement.

The dedicated software system would be capable of processing high-volume data from different properties so that the client can get detailed records of inspections and financial transactions. It would also help them get real-time access to project insights for borrowers, banks, and property managers.

The ultimate objective of this collaboration was not solely about building a FinTech software system but also about developing a cutting-edge tool that would transform the way businesses engage with construction loan management.

Loan Management System Dashboard

The challenge was making sure everything felt familiar to the client while upgrading their entire workflow. We had to balance innovation with simplicity so that our new solutions fit perfectly into their existing processes without causing any friction.

Vivek Chavda
Vivek Chavda
Sr. Technical Lead, Radixweb
Challanges Faced While Development

Development Hurdles

The project came upon us very specifically, and the task of creating a loan management system for such a niche field presented us with a number of technical and industrial challenges:

  • Developing a cohesive platform capable of adapting to diverse construction projects with a standardized approach.
  • The inefficient system for issuing NOCs has led to lengthy turnaround times for disbursement requests.
  • No centralized reporting system to collect, store, and access reports from different stakeholders.
  • Generating a credit appraisal form was a laborious task with reliance on manual and paper-based processes.

Solutions Provided

Leveraging our expertise in FinTech software development, our development team set out to address the client company’s critical pain points and deliver a comprehensive platform. Here are the technical solutions we meticulously crafted to improve the overall efficacy of loan monitoring and disbursement:

arrow

Digitized NOC Processing

We implemented smart contracts, automation triggers, and validation protocols to streamline the NOC issuance, verification, and delivery process. We also integrated a real-time status tracking feature to help monitor the status of NOC applications at every stage.

arrow

Streamlined Credit Appraisal

By integrating an intelligent algorithm engine into the financial software, the client could process borrower’s data and automate the process of credit appraisal documentation. This improves the loan approval process with speed and accuracy.

arrow

External System Integration

Developing and integrating APIs with external systems, such as government databases, credit agencies, and financial institutions, ensured a unified data workflow, reduced manual data entry, and enhanced data accuracy.

arrow

Predictive Risk Assessment

Addressing the need for better risk management for various properties, we incorporated statistical algorithms and data analytics to assess historical data, project progress, and market trends to identify potential risks in advance.

arrow

Mobile Inspection and Reporting

The software allows professionals to conduct on-site inspections using mobile devices. The system facilitates real-time reporting, image uploading, and instant synchronization with the centralized platform for quick turnaround time.

arrow

Robust Communication Channels

Utilizing secure messaging systems and real-time notifications, we enable instant interactions and seamless collaboration between lenders, borrowers, inspectors, and managers with a dedicated communication channel.

Collaborate with a Team That Can Solve Modern Financial Challenges with Ease

User Segments

In developing our construction loan management platform, our FinTech developers assessed the diverse stakeholders involved in the construction project and finance management lifecycle. Let's understand how we designed the software to address the distinct needs of each user profile:

Borrowers

The software provides borrowers with a user-friendly dashboard to track application status and fund disbursement. They can also upload project documents and ensure compliance with the lender’s requirements.

Banks

For banking institutions or lenders, the platform offers a range of functionalities, including risk management and monitoring, automated reporting and compliance, and optimized disbursement processes.

Managers

Stakeholders who monitor internal and external operations are benefiting from automated workflows and a customizable dashboard presenting KPIs, financial data, and project progress. They can also track communication logs and resolve queries.

<4 Hours

Application Processing Time

43% Increase

In Customer Satisfaction

20 Minutes

Report Compilation Time

The Impact

Within just 3 months of deploying the system, the client could see the visible difference between the traditional method of loan management and the new digital workflows facilitated by the software. Her’s the before and after scenario:

Before

Manual Processes

The client relied on manual procedures for NOC issuance, disbursement requests, and documentation, leading to significant processing delays and errors.

Lack of Real-time Insights

The absence of a centralized reporting system resulted in delays in report compilation and hindered quick decision-making. Real-time business KPIs were unavailable.

Paper-Intensive Operations

Paper-based processes required extensive manpower, causing delays in disbursements, affecting customer experience, and increasing operational costs.

After

Enhanced Operational Efficiency

The software's automation features significantly reduced administrative burdens, slashing TAT for critical processes. The application processing time reduced from 3 days to 4 hours and disbursement requests, which previously took up to 2 days now take less than 60 minutes.

Cost Reduction and Improved Experience

By eliminating paper-intensive processes and reducing manual intervention, operational costs decreased. The improved efficiency resulted in a 43% increase in customer satisfaction due to faster disbursements and transparency.

Empowered Decision-Making

Real-time insights and predictive analytics empowered the client to make proactive decisions, which mitigated potential risks and enhanced their portfolio management strategies. This resulted in cutting down report compilation time from 5 hours to under 20 minutes.

Vivek and his team at Radixweb did an excellent job. Deployment time was fast and the final product we received and have been using is very stable. We’ve now decided to expand the line of systems that we’ll have them develop for our company.

Drew Lloyd
Commercial Specialist
Tell Us About Your Challenges, We’ll Set up the Best Team for You
Top 1000 Companies Clutch Global 2021
ITFirms Top Web Development Company
Top 10 Custom Software Development
Clutch - Top Software Development Company
Forbes Technology Council
Great Place to Work - Radixweb
Top Rated Software Development Companies - Radixweb
Goodfirms - Top Software development company - Radixweb
IAOP 2024 The Global Outsourcing 100
Top 1000 Companies Clutch Global 2021
ITFirms Top Web Development Company
Top 1000 Companies Clutch Global 2021
ITFirms Top Web Development Company
Top 10 Custom Software Development
Clutch - Top Software Development Company
Forbes Technology Council
Great Place to Work - Radixweb
Top Rated Software Development Companies - Radixweb
Goodfirms - Top Software development company - Radixweb
IAOP 2024 The Global Outsourcing 100
Top 1000 Companies Clutch Global 2021
ITFirms Top Web Development Company