Feature Updates
Configure Approval Flow: Granular Control for Informed Lending Decisions
By Olayemi Jemimah Aransiola
May 22, 2024

Navigating the delicate balance between speed and security can be a constant challenge. You want to ensure qualified borrowers receive the funding they need quickly, but also safeguard your organization from potential risks. The Approval Flow feature within Configure offers a powerful solution, streamlining the loan approval process while guaranteeing the involvement of the right individuals at every step. This robust system empowers informed decisions, enhances transparency, and ultimately fosters a more efficient and secure lending environment.

Research shows that a well-defined approval workflow can significantly improve lending operations. A study by Aberdeen Group found that companies with streamlined approval processes experience:

  • 30% faster loan processing times
  • 20% reduction in errors
  • 15% improvement in customer satisfaction

Why Approval Flows Matter:

  • Enhanced Security and Compliance: Approval workflows prevent unauthorized loan approvals, safeguarding your financial institution from fraud and ensuring adherence to regulatory requirements. A study by the Association of Certified Fraud Examiners (ACFE) found that organizations lose an average of 5% of their annual revenue to fraud. Implementing robust approval processes can significantly reduce this risk. 
  • Improved Efficiency and Transparency: Clear approval workflows eliminate confusion about who needs to review or approve loan applications. This speeds up the decision-making process and provides borrowers with timely feedback. Research shows that streamlining loan approvals can lead to a 20-30% reduction in processing times.
  • Reduced Risk and Increased Accountability: Distributing loan review and approval across different team members mitigates the risk of individual bias or errors. This fosters a culture of shared responsibility and accountability within your lending team.

How Approval Flow Works in Configure:

  • Granular Control: Lenders can configure approval workflows for Loan Origination and Disbursement, ensuring that designated personnel review all vital stages.
  • Customizable Teams: Lenders can create different approval chains with varying reviewers or approvers based on the loan type, size, or borrower profile.
  • Clear Roles and Permissions: Approval flow allows lenders to define distinct workflow roles. Approvers can grant final approval or decline applications, while reviewers can provide valuable insights without authorization privileges.
  • Enhanced Flexibility: Lenders can address staff absences through re-routing capabilities. If a reviewer or approver is unavailable, Configure allows you to assign tasks to interim reviewers or approvers seamlessly.

Tailored Approval Configurations:

Configure offers two approval flow options to cater to your specific needs:

  • Option 1: Terminate Flow After First Decline: This option ensures a swift response for borrowers. If any approver declines the application, the process stops, and the borrower is promptly notified.
  • Option 2: Collective Approval for Final Decision: In this scenario, final approval hinges on the consent of all designated approvers. Additionally, lenders can establish Veto Power for specific individuals (Decision-makers). This implies that even if one or more approvers decline, a designated Decision-maker’s approval can override the previous decisions and grant final approval.

Department Management:

  • Centralized Control: Admins can create, modify, and delete departments within your organization, ensuring a well-structured hierarchy.
  • Department Heads: Designated department heads can oversee specific teams and workflows.
  • Configurable Approval Thresholds: Admins can set loan amount thresholds for each approval/review level within a department or role. These thresholds can be adjusted as your organizational policies evolve.

Automated Routing for Efficiency:

Configure automatically routes loan applications to the appropriate approvers based on the pre-defined thresholds. This eliminates manual routing tasks and ensures swift processing.

Location on Configure:

  • Create Departments: Settings > My Company > Team Member Tab > Manage Department button
  • Create Approval Workflows: Settings > My Company > Approval Tab

By leveraging Approval Flow, lenders can make informed and secure loan decisions, improve operational efficiency, and empower their lending team to deliver exceptional service. Ready to experience the power of Approval Flow? Contact our team today to learn more about how Configure can transform your lending operations.

By Olayemi Jemimah Aransiola
May 22, 2024
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