FINACLE ORIGINATION

Gain superior agility and Such operational setups result in high cost • It offers advanced rule-based
of operations and delays in credit decision underwriting and integrated credit
efficiencies with enterprise
making, thereby adversely impacting the monitoring capabilities, which empower
origination solution
quality of customer service. Inconsistent banks to control risk and achieve higher
The recent global financial meltdown has decision making and lack of robust credit credit quality to increase profitability.
reshaped the landscape of the lending monitoring capabilities reduce the quality
business around the world. It has spurred of loan portfolio and put banks at risk of
• It is a host system-agnostic solution
with readymade integration adapters
many new challenges. On one hand, banks higher defaults.
and a robust integration platform to
have to deal with the intense competition
In today’s business scenario, it is vital for facilitate rapid integration with external
for creditworthy customers, high non-
financial institutions to adopt a unified credit bureaus and other enterprise
performing assets and rigorous regulatory
origination platform that can manage the applications for seamless processing.
regimes. On the other, they must reduce
their costs while at the same time catering complete credit lifecycle across loan types
• The solution’s workflow management
to the sophistication demanded by in a cost effective and flexible manner. engine offers a graphical user interface
customers. To succeed in today’s fiercely to design workflow sequences and
competitive market, financial institutions Finacle Origination facilitates straight through processing
need to streamline their operations to (STP) to optimize business operations.
Finacle Origination is a best-in-class
serve their target markets cost-effectively
with increased speed and transparency.
enterprise loan origination solution, which • An industry-leading user interface and
simplifies the complete credit lifecycle, process-based screen design enables
They need to deploy robust credit
across retail and commercial loans. rapid adoption and higher productivity.
management processes to safeguard the
quality of their portfolios to • Finacle Origination supports the It is an enterprise class origination platform
remain profitable. end-to-end credit lifecycle – from that is responsive to changing business
customer application to credit analysis needs in loans, provides agility to the bank
However, most financial institutions are and decisioning, followed by loan to be competitive and helps banks meet
still saddled with manual-procedures onboarding and credit monitoring – service levels without compromise, thus
and product-centric siloed origination across various types of loans, ensuring helping them deliver substantial ROI.
modules leading to sub-optimal credit cost efficiencies and optimum control.
assessment and inconsistent processes.

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Functional architecture

Finacle Origination

Retail Commercial

Quote Automated Rule Based Valuation Automated Debt Financial Non -Financial Project
Checklist
Management Qualification Pricing Report Underwriting Aggregation Analysis Monitoring Finance

Common Modules Inquires Alliances

Finacle
Surround Application Credit Deviation Multi-level Credit
Solutions Needs list Fees Inquiries Collaterals
Capture Analysis Management decisions Scoring
Rule
Engine
Finanz Master Data Layer
Tools
Document
Financial Statement Financial and
Needs List and Management
Product Rules Pricing Rules and Credit Scoring Collateral Rules Non -Financial
Checklist Rules
Rules Monitoring Rules
Alerts
Document
Infrastructure Layer Generator

Multi- Single Integration Access Workflow

24/7 Reporting Audit Scheduler
lingual Sign-on Framework Control (BPEL)

Finacle Integration Platform

Enterprise Applications and External Credit Agencies

Core Banking CRM Credit Bureaus Valuation and Title Agencies

External Document © 2016 EdgeVerve Systems Limited

Key modules Retail origination features that borrowers meet basic eligibility
criteria, before the commencement of a
Finacle Origination offers a flexible • Rule-based decision support: Finacle detailed underwriting process.
platform to originate various types of retail supports rule-based decisioning through
and commercial loan products, such as bank-defined parameterization of • Relationship-based pricing: Leveraging
mortgages, student loans, asset-backed business rules based on operational an enterprise rules engine, Finacle
loans, consumer durable loans, vehicle requirements, credit policies and Origination helps banks offer segment-
loans, project finance, syndication and governing regulations. This automates specific competitive pricing to optimize
overdrafts. The solution offers extensive the decisioning process and helps the return on every portfolio. The
parameterization, reusable business rules achieve consistency, speed and differential pricing – which could be
and processes to help banks add new objectivity in lending decisions. based on accounts, customers or channel
products. The solution consists of two preferences – ensures that the loans
broad modules: • Multichannel origination: Finacle are priced optimally, enabling banks to
Origination is a Service Oriented acquire good customers, while at the
a. Retail origination Architecture (SOA)-based multichannel- same time balancing risk and return.
b. Commercial origination enabled solution, which enables banks to
originate retail loan applications across Commercial origination
channels. It can acquire prospect and
Key features features
application data from multiple channels

• Advanced underwriting capability: and provide them with the application • Product bundling and group
status on request. This expands reach applications: The ability to originate
The solution offers advanced rule-based
to different customer touch points and multiple products in a single application
underwriting capabilities, including
enables an enhanced and seamless enables banks to effectively up-sell and
point-based scoring, financial analysis,
customer experience. cross-sell to corporate customers. It
related party exposure monitoring, and
provides the ability to process multiple
deviation matrix to empower banks to
implement stringent credit criteria to
• Credit report and scoring: The solution products within a single application,
gives banks the flexibility to configure as well as the capability to selectively
enhance loan portfolio quality. a host of business rules for credit score approve or reject them. This results in
calculation, thereby enabling them to
• Real-time collaboration: The solution benchmark loans against their credit
better tracking and faster application
processing.
empowers multiple users to collaborate
policy. In addition, robust interfacing
in processing a loan application in
real-time. This results in faster and
capabilities help banks obtain reports • Debt aggregation: To provide a real
from credit bureaus to gauge the picture of the risk associated with a credit
collaborative decision-making, thereby
creditworthiness of loan applications. application, Finacle Origination supports
improving customer service.
the computation of a borrower’s total

• GUI-based workflow: An advanced • Multi-level approval: The system direct and related exposure, using
supports a multi-level approval workflow bottom-up aggregation logic.
workflow engine enables dynamic
mechanism which allows an application
workflows, which add value to the
entire origination lifecycle with features
to be routed between underwriters at • Multi-limits management: The solution
different levels of hierarchy and then get supports creation of multiple limits
like rule-based load balancing, holiday
approved as per the credit authorization within a single application. Limits may
balancing and Service Level Agreement
matrix of the bank. be created for a single customer or for
(SLA) management, reducing manual
a group, after which users are provided
intervention and improving Turn Around • Pre-qualification: The solution can with a hierarchical view of all the limits
Times (TATs). ‘pre-qualify’ loan applications to ensure

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 and linked products. This gives banks a application. Any deviation from the laid and taking proactive corrective action.
holistic view of the exposure, helping down policies and procedures is duly With a centralized platform and the
them track it at various levels and highlighted to the approver. flexibility to configure business rules
manage portfolios accordingly. for credit policies, operating guidelines
and governing regulation, the time and
Business benefits
• Financial and non-financial covenant cost to compliance with internal policies
monitoring: Finacle Origination enables Enhanced operational efficiency and regulatory requirements reduce
banks to define and monitor key significantly.
With Finacle Origination, banks get an
financial and non-financial performance enterprise-wide platform that unifies the
Business agility
indicators of corporate customers loan origination processes across the retail
during the entire borrowing lifecycle. and commercial banking products. This The extensive parameterization-based
Any deviation is highlighted, based on simplifies the business technology and solution design helps to originate various
which the lending arrangement with the reduces operational costs by improving types of corporate and retail loan products.
borrower might be reviewed. This allows efficiencies through standardization Banks can easily add a new loan type on the
banks to take timely corrective action of processes. platform by reusing the common business
and safeguard themselves from the risks rules and processes, reducing time to market
Automation of multiple functions on a significantly. The ability to originate multiple
associated with high value commercial
unified platform delivers Straight-through products in a single application enables
loans.
Processing (STP), which lowers manual banks to up-sell and cross-sell effectively.
• Spreading templates and financial intervention and errors. The solution’s
Superior customer service
ratios: The solution allows the workflow management engine empowers
configuration of a Financial Statement banks to design most suitable workflow Finacle Origination provides a unified view
template for different industries and sequences to optimize business operations. of customer information and exposure to
customer segments for the calculation enable faster decisions and reduce the time
The ability of the system to support multiple
of financial ratios for credit underwriting for processing new loans thereby improving
users collaborating on loan applications in
and monitoring. It also supports the customer service. This multi-channel
real-time, shortens TAT and boosts efficiency
enabled solution enables banks to take
capture of financial statements, such as and accountability by clearly dividing access
the origination process to the customer’s
balance sheets, income statements and and responsibility.
channel of choice. Thanks to real-time
cash flow statements.
Improved credit quality notifications, banks can keep customers

• Checklists: Finacle Origination

With advanced underwriting and
engaged more efficiently and transparently
supports checklists, which can be used throughout the origination lifecycle.
extensive monitoring capabilities, Finacle
by banks to define the policies and
Origination helps banks reduce risk by
regulatory parameters that must be
identifying potential bad loans early
adhered to while processing a credit

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About Infosys Finacle
Finacle is the industry-leading universal banking solution from EdgeVerve Systems, a wholly owned subsidiary of
Infosys. The solution helps financial institutions develop deeper connections with stakeholders, power continuous
innovation and accelerate growth in the digital world. Today, Finacle is the choice of banks across 84 countries and
serves over 547 million customers – nearly 16.5 percent of the world’s adult banked population.

Finacle solutions address the core banking, e-banking, mobile banking, CRM, payments, treasury, origination,
liquidity management, Islamic banking, wealth management, and analytics needs of financial institutions worldwide.
Assessment of the top 1000 world banks reveals that banks powered by Finacle enjoy 50 percent higher returns on
assets, 30 percent higher returns on capital, and 8.1 percent points lesser costs to income than others.

For more information, contact [email protected] www.finacle.com

©2016 EdgeVerve Systems Limited, a wholly owned subsidiary of Infosys, Bangalore, India. All Rights Reserved. This documentation is the sole property of EdgeVerve Systems Limited (“EdgeVerve”).
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