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.
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A Loan Management Platform Reduced Application Processing Time from 3 Days to 4 Hours
Industry
Financial Services
Country
United States
Project Duration
14 Months
Development Method
Agile
Team Size
6 Experts
Project Brief
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.
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.
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
Sr. Technical Lead, Radixweb
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:
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.
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.
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.
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.
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.
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.
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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
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