Micro Finance Loan Processing App Development

About

An Africa-based fintech organization partnered with Rishabh Software for microfinance loan app development. The partnership aimed to automate and streamline its entire loan lifecycle, from the initial assessment of the loan application and KYC verification to loan approval and disbursement. The primary goal was automating the process from authentication to loan disbursement while maintaining the highest standards of operational efficiency and customer satisfaction.

Capability

Digital Experience

Industry

FinTech

Region

African Country

Key Features

Rishabh Software developed a microfinance loan processing app catering to the end customers and the client’s banking partners. We re-engineered the existing loan application process and implemented a workflow engine to automate the loan process. Key features of the solution include:

Efficient Documentation and KYC Management

Our team automated document handling and KYC processes by digitizing a proprietary screening platform. This advanced system and secure document upload features streamlined compliance tasks and risk assessments.

Real-Time Application Tracking

Our team integrated front-end and back-end systems to enable real-time tracking and instant notifications throughout the loan lifecycle. This feature keeps customers informed at every stage of the loan lifecycle, from document submission to final approval or rejection status and disbursement.

Centralized Management of Applicants Accounts

The microfinance loan app’s admin dashboard was customized to process everything in one place – from tracking application statuses and automated alerts to monitoring loan disbursement and payment status.

Loan processing app features showcasing credit score

Automated Credit Processing

The app offers a module that uses proprietary algorithms that leverage alternative data sources to assess credit risk accurately and efficiently. This expedites the application review and loan disbursement process.

Loan Eligibility Calculator

The new calculation feature in the app helps determine the eligible amount by considering the applicant’s salary, liabilities, years of service, income, and other relevant parameters. If the initial loan request exceeds the calculated eligibility, the system proposes a lower alternative loan amount.

Fraud Prevention

We integrated a fraud prevention API that monitors user activities and transaction patterns in real-time to detect and prevent fraudulent activities. It verifies user identities and analyzes behavior to take immediate action if suspicious activities are detected.

Challenges

Inefficient document validation & management delayed loan application reviews
Predominantly manual system made loan processing cumbersome and resource-intensive
Banks struggled to confirm applicants’ identities due to different versions of customer names across different IDs
The absence of integrated screening, risk-scoring, and assessment tools hindered accurate credit decisions during the loan approval process.
Limited integration with existing banking systems hampered efficient loan disbursement and servicing.

Loan installment screen of digital lending mobile app

Solution

We refactored the existing codebase and leveraged Spring Integration as the custom workflow engine developer framework to automate the loan application process and ensure seamless integration with the existing Java-based architecture. We executed the following key initiatives for digital lending platform development for microfinance banks:

Automated End-to-End Process

We engineered a comprehensive solution using the Spring Integration framework to automate every aspect of the loan lifecycle process, from KYC authentication to loan disbursement and payment. This streamlined approach ensures efficiency, accuracy, and a seamless user experience throughout the entire process.

Backend API Development and Mobile App Integration

Leveraging Kotlin, Java, and React Native, we developed robust backend APIs and integrated them with the mobile application. This unified ecosystem enables smooth data flow and interaction, enhancing overall system performance and user satisfaction.

Algorithm Development for Risk Assessment

Our team devised sophisticated proprietary algorithms to calculate risk scores, verify documents, and make instant approval or rejection decisions. This intelligent system ensures swift and accurate processing of loan applications, minimizing delays and optimizing user experience.

Integration with Financial Institutions and Credit Bureaus

The platform seamlessly integrates with partner banks’ core banking systems to automate loan disbursement and payment reconciliation. It enables real-time fund transfers upon loan approval and automatically fetches EMI transaction reports for efficient reconciliation upon loan closure. To further enhance the platform’s capabilities, we integrated with leading financial institutions and credit bureaus for loan disbursement and credit scoring.