AU2017100460A4

AU2017100460A4 - System and method to compare and recommend eligible loan services

Info

Publication number: AU2017100460A4
Application number: AU2017100460A
Authority: AU
Inventors: Chu Ern LIM
Original assignee: Loanstreet Sdn Bhd
Current assignee: Loanstreet Sdn Bhd
Priority date: 2017-04-27
Filing date: 2017-04-27
Publication date: 2017-06-01
Anticipated expiration: 2025-04-27

Abstract

Abstract System and Method to Compare and Recommend Loan Services to Customers The present invention relates to an automatic loan request processing system. The system comprises a database maintaining a lenders database and customer financial performance 5 database and a loan processor for processing customer loan application request. The system receives loan application request from different channels partners such as real estate agencies, vehicle dealers, loan agencies, developers etc. The loan processor processes received request containing customer/borrower information according to one or more lenders programs stored in the database and determines at least one score for loan 10 request. The system compares the determined loan scores with the threshold criteria as defined by one or more lenders and based on that a loan eligibility status report is generated. The loan eligibility reports contain the information about the possible eligible lenders which can offers loan to the customer/borrower based on the provided information. 15 The Most illustrative diagram: Figure 1 (100) Loan Processor Lenders/BankLoan Houses/Financial Database 1012 Institutions Web Server 1013 Channels Partners i11 r12 r13 1 Fig. 1

Description

2017100460 27 Apr 2017 1

SYSTEM AND METHOD TO COMPARE AND RECOMMEND ELIGIBLE LOAN

SERVICES

Field of Invention 5 The present invention relates to financial transactions and similar processing systems, and more particularly to a unified systems, mechanisms and methods for processing loans application requests from different users and recommend loan service based on fulfillment of eligibility criteria.

Background of the Invention 10 When a potential borrower desires to obtain a loan such as, but not limited to, personal loans, loan for financing a home, vehicle, boat, jeweliy or other substantial purchase, the potential borrower is commonly required to complete one or more various forms constituting a loan application. The information entered on the forms can be voluminous, and can include financial information such as account records, account balances, loan 15 balances or the like, which is of a confidential nature. The information is then either manually evaluated or evaluated using the assistance of a computer-based system. In the process, the information may be reviewed by several people and presented in various written or printed formats. As a result, confidentiality becomes a problem as dissemination of the information increases and, as more people are involved in the evaluation process, 20 the likelihood of human error increases. Such human error can lead to the information being misread or misinterpreted, incorrect information being input into a computer, and even the information be mixed up with another borrower's file. In addition, the evaluation process can be slow and tedious.

In an effort to reduce potential errors and expedite evaluation of the loan applications, 25 automated loan evaluation systems have been developed. For example, U.S. Pat. No. 5,239,462 issued to Jones et al. on Aug. 24, 1993, discloses a method and apparatus for automatically determining the approval status of a potential borrower. This system, however, still requires use of a prepared loan application, in the form of an encoded input sheet. Further, the system relies on facsimile transmission of the encoded input sheet, 2017100460 27 Apr 2017 ? which is susceptible to scanning errors as well as data transmission errors. In addition, the input sheet must be mechanically scanned a second time after being sent by facsimile transmission. U.S. Pat. No. 4,736,294 issued to Gill et al. on Apr. 5, 1988, discloses data processing methods and apparatus for managing vehicle financing. Again, this system 5 requires use of an application form. In addition, the system is not fully automated, and provides hard copy printouts for use in the evaluation process.

Further, none of the system and method provides the capability to select a particular lender, or perform a complete evaluation and approval of the loan with confirmation being forwarded directly to the lender as well as to the requestor. Moreover, none of the system 10 provides for the use of threshold criteria for the loan approval for different type of loan request. In other words, none of the system provides its own global eligibility criteria that will help in obtaining precise results.

Therefore, there is a need for a customer eligibility evaluation system and loan approval system that would eliminate the problems associated with the prior arts and would provide 15 a unified system for loan request processing for different types of loan applications.

Summary of the Invention

An object of the present invention to provide a loan processing system comprising a database comprising a lender database storing one or more loan programs, the loan 20 programs being associated with one or more possible lenders, each said loan program being associated with a set of loan approval rules and a customer database maintaining customer financial performance history database maintain, a loan processor coupled to the database, the loan processor receives a customer loan application request from a preferred channel partner, identifying the loan program associated with loan application request, 25 processing the loan request information and the customer financial performance information according with the loan approval rule associated with the loan program, generating a debt servicing ratio (DSR) score for the customer loan application request, generating a credit score for each customer and determining the collateral quality of each customer. Each lender has a separate set of rules for determining the eligibility of the 30 customers and for providing loans to the customers. The debt servicing ratio (DSR) score, 3 2017100460 27 Apr 2017 credit score and the collateral quality of each customer are run through each lender’s threshold table to determine the maximum amount of loan that can be allocated to the customer. 5 Another object of the present invention is to provide a loan processing system comprising a database comprising a lender database storing one or more loan programs, the loan programs being associated with one or more possible lenders, each said loan program being associated with a set of loan approval rules and a customer database maintaining customer financial performance history database maintain, a loan processor coupled to the 10 database, the loan processor receives a customer loan application request from a preferred channel partner, identifying the loan program associated with loan application request, processing the loan request information and the customer financial performance information according with the loan approval rule associated with the loan program, generating a credit score for the customer loan application request, comparing the credit 15 score with one or more landers loan approval threshold, providing the landers eligibility result information for said credit score associated with the customer loan application request, wherein the sending the loan document includes sending the loan document to the customer through one of e-mail, facsimile, a network, and a printer coupled to the network. 20 A furthermore object of the present invention to provide a loan approval method comprising steps of receiving a customer loan application request from a preferred channel partner, processing the loan application request according with the one or more pre-configured loan approval rule associated with a lenders, wherein preconfigured rule comprises at least income recognition rule, commitment recognition rule and collateral 25 blacklist recognition rule, generating a debt servicing ratio (DSR) score for the customer loan application request, comparing the debt service ratio (DSR) with preconfigured one or more debt service ratio (DSR) threshold value associated with one or more lenders and providing the loan eligibility result information for said DSR value associated with the customer loan application request. 30 A furthermore object of the present invention to provide a non-transitory computer-readable storage medium storing computer instructions that, when executed by one or 2017100460 27 Apr 2017 4 more processor for processing loan application request comprising steps of receiving a customer loan application request from a preferred channel partner, identifying the loan program associated with loan application request, processing the loan request information and the customer financial performance information according with the loan approval rule 5 associated with the loan program, generating a credit score for the customer loan application request, comparing the credit score with one or more landers loan approval threshold and providing the landers eligibility result information for said credit score associated with the customer loan application request. A furthermore object of the present invention to provide an embodiments of the invention, 10 there might be one or more customers/borrowers, and there might be one or more lenders. Thus, the ratio of borrowers to lenders might be many-to-one, one-to-one, one-to-many, or many-to-many.

Brief Description of the Drawings

The present invention will now be described more fully hereinafter with reference to the 15 accompanying drawings, in which embodiments of the invention are shown. However, this invention should not be construed as limited to the embodiments set forth herein. Rather, these embodiments are provided so that this disclosure will be thorough and complete, and will fully convey the scope of the invention to those skilled in the art. Like numbers refer to like elements throughout. 20 Figure 1 is a schematic diagram of a loan processing system architecture according to one embodiment of present invention.

Figure 2 is illustrating loan request process flow between different entities according to one embodiment of present invention.

Figure 3 is illustrating different modules of loan system according to one embodiment of 25 present invention.

Figure 4 is a schematic diagram of a loan processing system architecture according to one more embodiment of present invention. 2017100460 27 Apr 2017 5

Detailed Description of the Preferred Embodiments

The present invention will now be described in detail with reference to the accompanying drawings.

Figure 1 is a schematic diagram of a loan processing system architecture according to one 5 embodiment of present invention. The loan platform (100) of present invention includes a loan processing system (101), lenders (102) and channels partners (103). The loan request processing system (101) comprises a memory data (1012) divided into two sub-modules a lenders database and a customer financial performance database. The lenders database configured for storing one or more loan program instruction as specified by different 10 lenders/bankers for processing loan request according to a pre define rule. The customer financial performance database configured to maintain customer financial transaction history includes various credit and debit transaction, account records, account balances, loan balances, income type, account type, credit history, transactions, Income net worth, commitments or the like, which is of a confidential nature. The loan processing system 15 (101) communicates with channel partners (103) via web interface. The web server (104) provides a web-based interface at user terminal. In some other embodiments, the loan platform (100) of present invention is associated with a mobile application having a user interface configured to allow users to interact with the loan processing system (101), lenders (102) and channels partners (103). The users can launch the mobile application 20 from an electronic communication device of the user such as Smartphone, tablet or any other smart devices including smart wearable device. The mobile application allows the users to provide loan request information through a user interface of the mobile application to the loan processing system (101) to verify the information with the lenders (102) and the channel partners (103) for determining the loan eligibility of the users. 25 Further the loan eligibility result information is displayed via the user interface of the mobile application. The web server (1013) provides web based application interface at user terminal (11, 12, 13, and 14) through a web browser based application. This could be in the form of a web page application form ay computer terminal or a mobile app interface for mobile terminal. The user selects preferred channel partner (103) for respective loan 30 application. The present invention provides a unique system that works for different channel partners (103). According to an embodiment of the present invention the channel partners (103) can be a real estate agency, developers, vehicles dealers, Educational 6 2017100460 27 Apr 2017 institutions, insurance agency, digital channel, bank, and broker firm, which provides a specific type of loan application to the customer. All application requests received at system platform (101) and processed by the loan processor (1011). The loan processor (1011) processes the loan application request received from the user terminal via channel 5 partner. The application form contains user details, these details are processed by loan processor according to a loan program stored in the lender data base (1012). A lender database at memory (1012) contains one or more such loan program associated with a type of loan application request and a bank. For each received loan application request from the channel partner, loan processor determines an appropriate loan program and process the 10 customer information and customer financial performance information stored on database (1012) according to loan program for generating the customer credit score. The customer credit score define customer eligibility for different lenders for a specific type of loan application request. A customer can be passed all criteria for a particular lender or may be failed the criteria for similar another banker. The customer credit score is compared with 15 the one or more threshold value defined by different lenders and based on that a status report is generated. The report contains customer eligibility for report for different lenders. This report is sent back to customer terminal and the eligible lenders, banks, financial institutions (102).

Figure 2 is illustrating loan request process (200) flow between different entities according 20 to one embodiment of present invention. At step (201) a loan application request is secured via channel partners, at this step customer/borrower selects type of loan as per their need and fill an application form via web portal. The application can be a request for home loan, personal loan, educational loan, loan against insurance, gold loan, loan against mutual fund, loan against shares, vehicle loan, enterprise loan, micro loan and overdraft. 25 The information fill by borrower in the application form contains user information such as contact details, qualifications, employment type, Collateral details, and details of product being sought, Documentary evidence and various report. All the details provided at step (201) are received at step (202) in loan street partner system of present invention. Here the application is processed by the system with the other financial performance data about the 30 customer according to an approval rule stored into the memory. The system at step (202) generates a report containing user score devised from the analyses on user information in application form. At step (203) customer/borrower score is compared with the different lenders/banks/financial instructions criteria of acceptance which comprises a threshold 7 2017100460 27 Apr 2017 score value for each entity. For those lenders customer score qualify the threshold value as defined by lender, customer status report is marked is pass, fail or border accordingly. At step (204) this report is sent back to the customer/borrowers and eligible lenders. Lenders for eligible borrower/customers provides access to the leads dashboards. 5 Figure 3 is illustrating different modules of loan system (300) according to one embodiment of present invention. The system (300) of present invention comprises a real estate channel partner module (301), Customer Relationship Management (CRM) Modules (302), Loan Eligibility Checking Modules (303) and Fulfillment Partners Modules (Lenders) (304). The real estate channel partner module (301), provides 10 customer/borrower to access the system of present invention and provides system access in the form a web interface, mobile access in the form of a mobile app. So that Real Estate Agents, can refer their customers for different type of loan applications such as maximum loan allowance checking, mortgage loan application, home loan etc. Further this also provides updates on their client referrals and reward points. The Customer Relationship 15 Management (CRM) Modules (302), is used by customer service agents and allows them to input the customer/borrower application details such as personal info of applicant(s) / guarantor(s), Contact details. Income, commitments, net worth, documentary evidence, Qualifications, credit history, employment type, Collateral details sufficient for valuations, Details of product being sought, Documentary evidence provided. Can assign cases to 20 various Lenders and receive status updates and various reports. The Loan Eligibility Checking Modules (303) comprises four other functional module for performing specific task of the present system. Loan Eligibility Checking Modules (303) comprises a Lender DSR Recognition Configurator, Lender DSR Threshold Configurator, Collateral Blacklist Configurator, and Combined Evaluation Module. The Lender DSR Recognition 25 Configurator allows configuration of how each Lender treats the quantifiable portions of the application information (E.g. Weightage of each customer’s income type). The Lender DSR Threshold Configurator allows variable configuration of the maximum repayment allowance for each of the Lender’s products, based on various quantifiable and subjective criteria. The Collateral Blacklist Configurator Allows configuration of blacklisted 30 collaterals. The Combined Evaluation Module provides access based on loan application info, outputs an indicative result for each lender, Whether the loan can be approved (Pass, Borderline Pass, Borderline Fail, Fail) and Maximum loan allowable by the bank for the application. 2017100460 27 Apr 2017 8

Figure 4 is a schematic diagram of a loan processing system architecture according to an embodiment of present invention. The system (400) of present invention includes an information database (401) and a Webserver (not shown) for providing web access to the lenders and borrowers for submitting loan applications. The database (401) stores pre-5 configured rules and formulas specific to each lender in the memory. The stored information also comprise CCRIS, CTOS, CBS info etc. The pre-configured rules and formulas stored in the database memory' comprises such as income recognition, commitment recognition, Max DSR threshold tables for each product based on arbitrary loan Application details (E.g. Income bracket, education, supporting documents, net 10 worth) collateral blacklist recognition. The based on these formulas and rule one more other parameter are calculated to detennine loan eligibility criterial of borrower specific to each lender. The system (400) start processing when a request for loan application is received at step (402). On receiving a request for loan in an application form includes user predefined information, system evaluate the received information based on the pre-15 configured income recognition (4031) and commitment recognition (4032) formula/rules specific to lenders and a lender specific net income value, net commitment value is generated and given at step (4041). At step (4041) for each lender, a specific Debt Servicing Ratio (DSR) value is calculated. At step (4033) pre-configured Max DSR threshold tables for each lender's product, which is based on arbitrary loan application 20 details (E.g. Income bracket, education, supporting documents, net worth) is determined. This table is compared with calculated DSR value received from step (4041). The comparison results are calculated at (4033) to determined lenders specific loan eligibility value. This lender specific loan eligibility value is provided to the step (4042). At step (4034) Pre-configured collateral blacklist recognition rules for each lender applied on user 25 provided data and collateral blacklist result is sent to the step (4042). At step (4042) combined evaluation value is generated and based on that individual results is given to each bank. This result information comprises Pass, Borderline Pass, Borderline Fail, Fail, and Maximum Loan allowable for each loan application request from an individual.

Any reference to claim elements in the singular, for example, using the articles "a," "an" or 30 "the," is not to be construed as limiting the element to the singular.

As will be readily apparent to those skilled in the art, the present invention may easily be produced in other specific forms without departing from its essential characteristics. The 2017100460 27 Apr 2017 9 present embodiments is, therefore, to be considered as merely illustrative and not restrictive, the scope of the invention being indicated by the claims rather than the foregoing description, and all changes which come within therefore intended to be embraced therein. 5

Claims

I/WE Claims

1. A loan processing system comprising: a database comprising: a lender database storing one or more loan programs, the loan programs being associated with one or more possible lenders, each said loan program being associated with a set of loan approval rules; and a customer database maintaining customer financial performance history database maintain; a loan processor coupled to the database, wherein the loan processor comprises one or more hardware processors operable to: receive a customer loan application request from a preferred channel partner, identify the loan program associated with the loan application request, process the loan request information and the customer financial performance information according with the loan approval rule associated with the loan program, and generate a credit score for the customer loan application request.
2. The system of claim 1, wherein the possible lenders comprises one of a bank, financial institutions and Loan providers.
3. The system of claim 1, wherein the channels partner comprises at least one of a real estate agency, developers, vehicles dealers, Educational institutions, insurance agency and broker firm.
4. The system of claim 1, wherein the customer loan application request comprises one of a request for home loan, personal loan, educational loan, loan against insurance, gold loan, loan against mutual fund, loan against shares, vehicle loan, enterprise loan, micro loan and overdraft.
5. The system of claim 1, wherein the loan program associated with the type of loan associated with the loan application request.
6. The system of claim 1, wherein the loan application request comprise one or more of contact details, qualifications, employment type, Collateral details, details of product being sought, Documentary evidence and various report.
7. The system of claim 1, wherein the at least one database includes credit bureau information relating to a customer/borrower.
8. The system of claim 1, wherein the customer financial performance information comprises customer credit history, transactions, Income net worth, commitments.
9. The system of claim 1, wherein the receiving customer loan request information includes receiving the loan information over a network.