Finastra launches Loan IQ Simplified Servicing to streamline SME loan management

Finastra, a leading global provider of financial software applications and marketplaces, has announced the launch of its Loan IQ Simplified Servicing solution.

Finastra, a leading global provider of financial software applications and marketplaces, has announced the launch of its Loan IQ Simplified Servicing solution.

This new offering is designed to enhance the efficiency of loan servicing, particularly for high-volume bilateral and SME loan portfolios, leveraging the robust features of Finastra’s existing Loan IQ platform, according to FF News.

The introduction comes as a response to the growing need for financial institutions to manage large volumes of loans more efficiently.

Many traditional loan servicing processes are slow and reliant on manual operations, especially when dealing with smaller loans. By addressing these inefficiencies, Finastra aims to support financial institutions in reducing operational risks and improving customer satisfaction.

The company is known for its commitment to Open Finance, which encourages collaboration and innovation within the financial services ecosystem, driving accessibility and flexibility for its clients.

The new solution combines the advanced features of the Loan IQ platform with an updated, user-friendly interface tailored for financial institutions managing bilateral and SME loans.

This system enables institutions to streamline their loan portfolios, unifying processes under a single platform that enhances data accuracy, accelerates lead times, and automates tasks that were previously manual, reducing both time and cost.

The product offers a fully integrated lending journey, eliminating silos within financial institutions by connecting various loan processes from origination to servicing.

This improves transparency, simplifies workflows, and minimises operational risks. Additionally, by digitising and automating lending operations, financial institutions can offer faster, more accurate servicing for customers of all sizes.

Finastra’s Loan IQ Simplified Servicing is set to modernise loan management for corporate and commercial lenders, providing a platform that integrates fragmented technology and supports the efficient servicing of SME loans. This supports Finastra’s broader mission of driving Open Finance and promoting innovation in the financial services sector.

Speaking about the launch, Finastra’s Head of Corporate Lending, Veena Rao, said, “Historically the loan market has been slow to innovate, making the loan servicing function reliant on manual processes that are inefficient and error-prone – particularly when it comes to servicing high volumes of smaller loans. The Simplified Servicing solution provides a way to service SME loans within Loan IQ, opening more routes to finance for small and medium-sized businesses. The move reflects our commitment to Open Finance and helping smaller businesses access the banking services they need to prosper.”

Patricia Hines, Head of Corporate Banking at Celent, also highlighted the importance of this innovation. “Corporate and commercial lenders often face challenges in managing their loan portfolios due to siloed operations, a lack of digitisation, outdated and fragmented technology, with isolated systems supporting different product types and offering little integration. This can lead to operational inefficiencies, risk exposure, difficulties in attracting and retaining the best staff and the prospect of losing customers to competitors,” she said. “The ideal lending platform creates an integrated end-to-end customer journey, with seamless integration from origination to servicing.”

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