Loan reconciliation is a major process for banks. It helps them track the different types of loan products and keep a record of their status.
Today, all banks which give out loans need to have a loan reconciliation process in place. Most of these processes are time-consuming, monotonous, and error-prone.
But thanks to new-age technologies, these processes can be easily automated.
Our client, a lead bank in the Indian BFSI space did the same. But before we talk about that, let's cover the basics:
Loan reconciliation is the process of analyzing loan product data such as total files, files receive, files not received, status, etc., and then producing a summary report for each loan product type.
Loan Reconciliation is critical because it provides agents and lenders with accurate information about loan asset ownership.
This is generally done through a manual or automated process for validating position data.
The loan reconciliation process is quite tedious. The main objective of the process is to provide users with a detailed analysis of various loan products.
This includes checking their current file Status and the count of files received after validation in the system.
The process is so tedious because of the number of loan products that exist in the ecosystem.
Loan Reconciliation Steps
Let’s take an example. Our client, a leading bank was facing issues with manual loan reconciliation.
Their Central Processing Unit Team approached us to create an automated system to reconcile the data provided by their vendors and ascertain their validity.
There are a lot of problems with loan reconciliation when done manually. Let's highlight the most crucial ones.
An automated approach to loan reconciliation can drastically increase process efficiency and reduce the turn-around time. Let’s look at some of the major benefits:
SheetKraft runs on logic. Once we fed the processing logic to the system, we created an automation flow very fast.
The digital set up of this process made it extremely flexible for our client to access the report. They could now open the SheetKraft portal anytime and find the reports.
SheetKraft's loan reconciliation automation helped our client have an annual savings of 1 man-year.