New software designed for large, multiline lenders pulls together facets of mortgage, auto, and credit card lending into a single system.
Posted Nov 2, 2006
Chordiant Software has launched its Chordiant Cx Lending Platform, designed to enable financial institutions to initiate lending products, from auto loans to mortgages to credit cards, within one, unified environment. The platform provides a single decisioning engine for consumer origination and product recommendation. Historically, financial institutions have used one platform for credit card approvals, another for mortgage decisions and yet another for consumer (e.g., auto) loans.
"The global 100 lenders, which this [targets], have multiple decisioning engines. The agents are making thousands of lending decisions each day. This provides decisioning for them at the desktop, says Frank Florence, Chordiant CMO. "This removes the possibility human error, so that the lenders don't make unprofitable, poorly priced loans."
By providing the lender with an enterprisewide view of a customer's loan accounts, the Chordiant platform helps better identify cross-sell opportunities, such as a second mortgage or an auto loan, in addition to a primary mortgage, than siloed systems can, according to Florence. This enables lenders to increase responsiveness, revenue, and customer satisfaction. The software also enables financial institutions align various aspects of the lending customer life cycle, including customer and broker marketing campaigns and acquisition, across multiple lines of business, lending product originations, and customer servicing, according to Florence. Additionally, the platform supports Chordiant's banking applications for dispute and fraud case management and collections of delinquent accounts.
There's a greater chance of fraud, when lending volume is strong. "Major banks suffer billions of dollars in [lending] fraud losses each year," Florence says. Though mortgage and home equity volume have dropped off sharply from where they were a couple of years ago, they're still running far ahead of where they were before the sharp increases in 2002 and 2003. By tying to the fraud and dispute management systems, the platform will help lenders more quickly identify fraud. Quick recognition of fraud is one of the best ways to prevent it, according to industry experts. The connection to the delinquent account application will help users better identify favorable, workable repayment options for accounts that are in arrears, according to Florence.
The Chordiant lending platform is available today, but it will take six to nine months for most of the targeted institutions to install it, according to Florence. "They will all want to customize it with their own branding and they each need to develop their own interfaces to their own legacy systems."
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