LMS rising to the next level

Industry experts discuss the approaches & actions required to modernise LMS software:

Rachit Chawla stresses making LMS more real-time & customer friendly

Loan Management Systems (LMS) supports multiple facets of loan portfolio starting from prospecting to closure and monitoring. A comprehensive loan management solution facilitates banks and financial institutions to automate the procedures for achieving cost savings and better customer experience.

ACTIONS TAKEN IN LMS

The LMS software is not directly impacted by the changes in customer experience as most consumer loans are either term loans repaid in EMIs (like a personal loan or auto loan) or lines of credit (like a credit card or overdraft). Prithvi Chandrasekhar, President, Risk and Analytics at InCred Finance says: “The basic LMS level requirements for these products have not changed for a long time. Where there will be changes is in enabling features (eg. rewards on a line of credit product, or more flexible repayments on a term-loan). These were less common a few years ago. LMS systems across the industry will be upgraded to address these needs.”

Rachit Chawla, CEO, Finway, using an LMS, hands-on features should be provided to customers on a real-time basis. They should be able to download their SOAs and real-time receipts. It is highly crucial to keep their data safe so that they can access it. For certain NBFCs, TDS is a big issue wherein the credit in the customer’s account happens with a delay, which ideally should be in real-time. Businesses need to think from a customer’s perspective.