Credit Application Processing

Overview
Credit Application Processing (CAP) is a web based credit evaluation system. CAP provides Finance and Leasing Companies with the ability to quickly assess the worthiness of an applicant applying for a loan or a lease. The System is equipped with strong workflow management, integrated link to Credit Rating Agencies, automated point scoring strategy for automatic approval/rejection/referral. CAP is seamlessly integrated with POS but it can also be customized to link to any third party Point of Sale System (ePOS).

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Industries
Finance and Leasing

Specifications
Point Scoring System
Point Scoring System is used for the purpose of credit rating of an applicant. It provides an automatic scoring mechanism to evaluate any credit application and contains certain set of rules that evaluate an application. Infinite number of models and rules can be defined within the system. It comes with a powerful graphical rule builder to define complex rules of any type. Two types of Models can be defined:
Basic Model
This score card gives scores in numbers.
Internal Rules
This score card gives scores in the form of colors i.e. Red, Yellow, Green. Every model has some scores that may be defined as:

1. Base Score
2. Auto Decline Score
3. Auto Approve Score

Credit Rating Agency Interface
CAP also has interfaces available with different credit bureaus to check the credit history and financial information of the applicants. The response from credit rating agency may include the number of previous defaults, bankruptcy information, existing credit providers, amount of previous defaults, etc.
Field Investigation
Field Investigation provides the facility to initially verify a customer’s information using phone. The Field Investigation window can be used to store information gathered by field investigator and to upload the field investigation report.
Financial Analysis
Financial analysis provides a comprehensive and detailed financial status of the applicant in one window. Here, the user’s current financial status, previous financial history with the financing company or other companies, payment capacity, cash flow, asset and liability details, credit bureau reports and collateral information is available. Blacklist information and exposure of the applicant is also available. Running a cash flow exercise, evaluating Asset and Liability statement, calculating Loan to Value ratio assesses applicant credit worthiness. The system can also be configured to validate four-eye principal, which requires one user to recommend and the other user to approve the application.
Exposure
Exposure includes the applicant’s (borrower, co-borrower, guarantor) history with regard to all the applications, contracts, and their statuses. This helps in detailed analysis of applicants and reduces the risk of making wrong decisions.
Application Register
Application Register provides facility to user to access the applications that are not currently in work queue scope. From Application Register he/she is able to access that specific application and can transfer that application to Work Queue for further operations.
CAP Interfaces
Following are some of the interfaces available in CAP:

1. Integration with Insurance company systems to get Insurance details.
2. Interface with Document Archiving systems. Documents uploaded in CAP through the document uploading facility or through scanners are archived by the Document Archiving system.
3. Scanner interface allows images to be scanned and directly attached to the application.
4. Glass’s Guide/Red Book Interface links CAP to vehicle data providers, such as Glasses Guide and Red Book. Glass’s Guide is available in Europe and Australia.

Common Modules
The following four modules are available in POS, CAP and CMS:
Business Partner Management
All the entities (Individual or Corporate) that are directly or indirectly connected with the system are treated as Business Partners. Business Partners can have multiple roles e.g. customer, dealer, guarantor, banks etc. Different credit limits can be defined which can be fixed or revolving. Relationships between the Business Partners can also be defined.
Financial Product Management
This module allows defining different types of financial products such as Personal Loans, Lease Finance (Operating Lease, Finance Lease), Non-Lease Finance (Hire Purchase, Mortgage), Consumer Sale by Installments, Installment Contracts, Property Loans & Franchise Finance (Debt Finance, Equity Finance). It also allows defining product groups as well as attaches different parameters and services to the products.
Asset Management
Asset Management module maintains a complete information of assets for evaluation of asset based credit requests and also for multiple stages throughout a contract lifecycle. It also includes different interfaces to retrieve/pass on the asset information as required.
Workflow Management
A very flexible and powerful workflow management system is provided. Different users with their roles and privileges can be created through the administration module and criteria can be assigned to them. The system will assign the incoming applications automatically to different users based on their roles and the criteria assigned to them.

Benefits

• User friendly web-based system
• Automated credit approval cycle
• Improved quality of decision on credit evaluation
• Increased productivity by processing higher number of applications