Nowadays, products and solutions related to loan processing systems have become a common need for many companies and financial institutions. Numerous software companies have come up with their solutions and products for meeting the increasing market demands of loan processing solutions. In this regard, Systems Limited, which is Pakistan’s first and the largest software house, has successfully developed a comprehensive loan processing system that effectively makes the overall loan processing system smooth and user friendly. The LPS or the Loan Processing System, has been developed using modern world-class technology by highly experienced professionals, having extensive expertise and proven track record in mortgage/lending industry. The LPS is customizable to a large extent and is based on a configurable rules based workflow engine, which in practical terms, means that the system is completely equipped with the properties that a lender can expect to have without having to worry about regulations and compliances. The LPS enables the lender to concentrate on their core business by greatly cutting lending costs and enabling his needs to get fulfilled with in the enormously competitive atmosphere of lending business. With this, the system protects the lender from getting concerned for the non-business-critical, non-compliance and regulatory issues.
With its loan processing system, Systems Limited offers an industry leading and fully web based solution to the loan processing needs of the financial sector.
The LPS of Systems Limited manages the loan processing systems in two categories,
- Standalone Lending
- Syndicate Lending (Leader and Participant)
The important aspects of Systems Limited’s Loan Processing System are:
Loan Origination
Loan Origination is the entry point for all types of loans (syndicate, standalone). Loan application is entered into the system with other supplemental information. Loan is passed to different departments for approvals. Risk assessment is done for this credit and only after its approval the loan passes on for underwriting. After this process, loan origination is finalized and disbursement is made. The loan is then ready to be boarded in the next process of Loan Servicing.
Automated Loan Servicing
This module provides the entry point for loan servicing; where payment schedule are revised, payments are collected and posted into the system for payment processing. Payment processing sub‐module within this module provides functionality for applying penalties on non‐payment loans, make adjustments in payments collected like pre‐payment, in‐sufficient payment etc. A sub‐module for reporting remittance to syndicate participants/leader is also a part of this module. As part of this servicing platform, bank reconciliation is also done and default loan cases are forwarded for loss mitigation and if necessary for litigations.
Litigation Processing
The Litigation Processing module manages losses in case of non‐payment of loans. It first tries to minimize the loss after which litigations are carried out for the recovery of losses. This module also provides the functionality to file and collect claims against insurance companies and guarantors.
Asset Management System
The Asset Management module is used for payment rescheduling and bill generation with manual charges like fee and adjustments. This module also maintains general ledger accounting.
Wide‐Ranging Push & Pull Reporting
This module is for accessing reports of various features and functionalities for analysis and decision making purposes. Typically these reports range from recovery position, non‐performing portfolio, and concentration reports to monthly activity report and credit risk ratings reports etc. The additional capability of this module is to push Aging Reports, Warning/Critical Reports to the supervisors/administrators. Dashboard functionality is provided in this module, which allows different departments and administrator/manager to pull reports as needed.
Salient Features of LPS
Some of the significant features of Systems Limited’s Loan Processing System are:
- The LPS is a completely web‐based solution, hence could be accessed from anywhere by providing security credentials
- Processes are maintained by workflows, overall change in a process does not have any effect on the business rules that already are defined with in a process
- Event Driven workflows help in automation, which means that as various activities occur during the processing, the next task or activity is queued
- Task manager creates tasks for appropriate departments and their users and tasks are assigned based upon priorities set by management and/or work rules
- Task Manager and workflow provide exception based‐ processing (where applicable) instead of reviewing/auditing every transaction. System is configured to present exception cases to queue (task list)
- Automatic QC tasks reduce time and manual efforts, it enables automatic follow‐up tasks, alerts and reminders, which reduce manual tracking and communication; queues are configured to display cases that exceed timeframe or allowable time based upon configurations and/or workflow rule
- System maintains audit trail of key activities performed during the processing, which establishes control in the overall process
- System provides functionality to seamlessly add extensions to the product for future banking needs
In the coming times, with its dynamic and nationally as well as internationally acclaimed services and products, Systems Limited promises a lot more to offer to the financial sector of Pakistan. | 
