How banks can speed up processing of home loans

GRANTING home loans can be made easier, faster and more secure through digitization.

Praveen Kumar, general manager of ASG Technologies, said getting a loan in the Philippines would take a maximum of 30 days before the proceeds are disbursed, versus the regional average of seven to 20 days.

“Imagine that you are collecting documents, putting it in the system, putting it through individual paperwork, getting it signed. We noticed many banks in the Philippines, actually take 20 to 30 days to disburse a loan because of this process where they are actually physically sending documents, collecting it, etc.,” he told BusinessWorld.

Florida-based ASG has been operating in the Philippines for about 13 years by providing information management and information technology (IT) system management solutions.

In the Philippines, ASG counts seven of the 10 top banks as its clients. This is because of the Bangko Sentral ng Pilipinas’ (BSP) push for digitization, requiring all banks to submit their roadmap for digitization by April.

Mr. Kumar said the delays in loan processing are costing not just the bank, but also the customer.

“If I can disperse a loan quicker it gives more revenue to the bank, it also helps you buy the house quicker. It also helps the seller make money quicker, and all of this is going to help the economy go faster and bigger. This whole process of digitization will help the economy as much as it helps the bank,” he said.

LAGGING IN DIGITIZATION Companies in the Philippines continue to lag in terms of digitization.

“The maturity levels of certain companies in the Philippines they are a little behind. However, the pace that they are transforming is very quick so they will actually catch up,” Mr. Kumar said.

“Secondly, it’s never wrong to be behind... at least we believe that when you’re behind you learn from the mistakes that others have done… Sometimes, it’s a bonus to be a little behind because you skip a complete generation of stuff which did not add value,” he added.

ASG has introduced the content services platform Mobius that does not only help streamline and speed up the process, but also add more security to personal information.

Through Mobius, documents are scanned and are stored on a platform which can be accessed by only those who are permitted to access it. Also, passing the document from one to another will not require repetitive scanning of a single document, which eats up internal space. Every modification done on a document will also be noted, allowing for transparency.

“Within the region... we have actually cut short this entire process to seven days,” Mr. Kumar said.

“Not only is the solution making sure that there is no tampering of data... but it also ensures privacy maintained within the system so that not everybody has access to everything that is stored in the bank,” he added.