What is it and how to automate it?

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Credit adjudication and management is a crucial process for companies and financial institutions with the objective of providing products adjusted to the needs of their customers. Here, a tool like the credit chain appears as an ideal solution to unify different credit obtaining processes, streamlining and protecting each stage.

Think about it, when a person or organization wants to buy a house or land, without importing its fines, first investigate the options, gather the documentation, ask for credit, make the offer and pay, it's not like that?

Well, the credit chain is a process that groups all these steps into a single solution , allowing customers to obtain ideal financial products for their needs.

Find out more!

What is the credit chain?
The credit chain is an integral process that encompasses all the steps necessary to obtain financing of any type . To make you imagine it better, think of it as a series of interconnected gears that work together to achieve a common goal: providing credit in an efficient and safe way.

Essentially, the credit chain begins when a customer phone leads or company requests a loan or line of credit. From there, a series of actions were triggered that involved analysis, decisions, contracting and follow-up .

Each step is crucial to ensure that credit is granted in a responsible and beneficial manner for both the lender and the borrower.

Now, financial institutions are seeking to optimize this chain to speed up processes, reduce costs and improve customer experience, especially considering current needs and the undeniable benefits of digital transformation

In this sense, automation and technology play a fundamental role, allowing for more efficient management and informed decision-making.

What are the steps in the credit chain?
So that this solution can provide really valuable financial options to people and companies, several internal processes must be carried out, which we summarize here:

Credit chain

1. Credit application
The process begins when the client fills in a form , it is sent online or in person. In this form, provide your personal data, income, financial situation and credit purpose.

Here all the information is analyzed, identifying both the customer and their specific need, seller, destination of the transaction and origin of the same.

2. Credit analysis
At this stage, the applicant's documents will be evacuated. For example, his score was studied at the Credit Bureau , checking his history in the different entities.

Using this information manually, the applicant's profile is analyzed in terms of payment capacity and associated risks, with the aim of determining the viability of the loan for the company and the customer's compliance.

3. Decision
Based on risk analysis and predefined criteria, the organization decides whether to decide whether to reject credit.

4. Definition of conditions
In case of approval, the credit conditions must be established, such as the amount, the interest fee and the payment period.

5. Credit disbursement
Here, the customer must have received the affirmative for his request, through the credit chain, if he proceeds to pay the money to his bank account.

6. Payment tracking
The last stage of the credit chain is the follow-up that is carried out by the customer for their payments . For this reason, the organization monitors the payment of credit balances and takes measures in case of delay or default.

Now, if as a financial company you are thinking about digitizing your credit card process, here we will explain why it is a good idea.

Benefits of automating your credit chain
Knowing the concept and stages of the credit chain, here we explain in detail its importance within financial organizations:

Streamlining the process : automation allows credit evaluation and approval to be carried out more quickly and efficiently, reducing waiting times for customers.

Reduction of delay risks : by following predefined criteria and consistently evaluating the risk, the probability of granting credits to people with a high probability of default is reduced.

Greater security : automation guarantees that policies and rules are applied rigorously, avoiding human errors and ensuring coherence in decisions.

Increased productivity and reduced costs : by eliminating manual and repetitive tasks, time is freed up for more strategic activities. Furthermore, the need for staff dedicated to the credit process will be reduced.

Improves customer experience : customers obtain faster and more accurate responses, which improves their perception of the service and the financial institution.

Consistent application of policies : automation guarantees that credit policies are followed uniformly, without exceptions or favoritism.

Is it ready to take to your business? Get ready for true automation!

How to automate the credit chain?
Automating the credit chain using comprehensive solutions that include tools such as BPMS ( Business Process Management System ), CRM ( Customer Relationship Management ) and Financial Analytics is the best option.

For example, by means of the BPMS it is possible to design and model the complete work flow of the credit chain. Defining the stages, the business rules and the interactions between the different actors involved.

On the other hand, using an omnichannel CRM you can store and manage customer information. This includes personal data, transaction history, communications and preferences.

Furthermore, with an analytical tool to evaluate the credit risk of applicants, you can include predictive models, historical data studies and credit scores.

Meet SYDLE ONE
SYDLE ONE is an all-in-one platform specialized in financial solutions and business management.

In addition to having all the solutions described, it also incorporates ERP, Billing and a gravitational architecture to adapt to other systems.