The Retail Lending module was specifically designed for the high-volume consumer lending market and is a fully-integrated component of Equation. A distinguishing feature of Retail Lending is that it offers a specialised Loan Origination front-end, which provides facilities to capture all the details required for a loan application and track its progress from initial application through to final approval and drawdown of the loan.
Alan Earnshaw, Product Marketing Manager for Equation’s Retail Lending offering, comments, “Consumer lending products can differ greatly between countries, and even between banks within the same regulatory environment. It is therefore imperative that any solution designed to support the processing of consumer loans is supremely flexible, in order to support the diverse requirements of this market sector.”
“Consumer Lending is also one of the primary areas where banks can differentiate themselves from their competitors by developing a range of innovative products, tailored to accommodate the specialised needs of individual customers and markets,” he continues. “For this reason, the inherent versatility of the Retail Lending application ensures it can cater for the widest possible range of regulatory and reporting requirements, as well as being able to support an extensive portfolio of loan products.”
The flexible design of Retail Lending enables variations in interest rates, terms, repayment periods and penalties to be established in advance, and used in a variety of permutations to create an extensive selection of loan offerings. In addition to general loan products, the system is designed to process a wide range of mortgage types, from straightforward repayment, discounted or capped rate mortgages to endowment and buy-to-rent mortgages.
“As well as generating repayment schedules automatically, the system also offers support for managing delinquent and problem loans, including penalty interest calculations,” Alan Earnshaw points out. “Delinquency processing is another specialised feature of Equation’s Retail Lending application and is designed to minimise the bank’s exposure to risk through default on a loan. Automatic monitoring of collateral values using the Collateral Recording feature, provides still further protection against overall risk exposure, particularly when used in conjunction with the Credit Risk Management system, which is a core component of Equation.”
“Equation’s Retail Lending application links directly to the Loan Origination front-end to offer an exceptionally efficient facility to banks involved in the high-volume consumer lending market,” he adds. “Loan Origination is a primary component of Equation’s retail branch automation platform and is fully integrated with Relationship Manager, MKI’s customer relationship management solution. This maintains the entire history of a customer’s relationship and dealings with the bank, and can be linked to other third-party systems, for cross-selling other products and services. For example, Relationship Manager could be linked to an insurance portal, providing the opportunity to offer quotes for house or car insurance to customers identified as having taken out a mortgage or car loan.”
Together with Cashier System and the Co-sign signature verification package, Loan Origination and Relationship Manager are client/server applications designed to operate in a Microsoft Windows NT environment. All these optional features are fully integrated with Equation, which runs on the IBM eserver iSeries processor (AS/400) to provide the necessary power and performance to support large-scale consumer banking operations.
Alan Earnshaw concludes by saying, "We are wholly committed to substantial ongoing development of Equation’s Retail Banking functionality to ensure the system continues to provide the cutting edge processing facilities and flexibility required by banks operating in today’s intensively competitive consumer banking market."