Oracle Financial Services Lending and Leasing Transform your lending, leasing, and lines businesses

Consumers want banks to be relevant and cost effective

1,600 fully employed adults found that 46% of this population – which typically has more stable fnances than other groups – still fnd that fnancial challenges are the number one source of stress in their lives. Lenders have a major opportunity to help consumers understand their fnancial options and choose the best solution based on their personal situation. Similar to how robo-advisors have brought the benefts of fnancial advisors to the mass market, digital tools such as artifcial intelligence enable lenders to provide this personalized advice at scale in a cost-effective manner.

- PwC and TheFinancialBrand

Lending and leasing consumers now expect from their fnancial service providers what they get from online stores and digitized retail brands- instant gratifcation, ultra-convenient transactions and device agnostic seamless servicing on demand.

This shift is heavily driven by latest technological advancements and the end to end lending process is steadily drifting towards automation. Traditional screening, origination, servicing, and collection processes have matured to support ‘straight through processing’ with automated credit scoring for underwriting and e-contracting for loan processing. With growing market complexity and ever changing regulatory mandates, lending institutions need comprehensive solutions that can manage processes across products, business units, and geographies. The solutions must be able to lower the average cost per loan, create consolidated actionable intelligence out of all the information, and enhance operational effciency.

The Oracle Financial Services Lending and Leasing solution focuses on providing a superior experience to the customer and the fnancial institution through its comprehensive and unifed offering. It provides end-to-end capabilities, from origination into servicing through collections to suit the requirements of prime and sub prime lenders. It offers unparalleled functional coverage as well as the ability to leverage all enterprise data to help make the right product offers and fnancing decisions. The solution also provides predefned processes with a world-class framework and supports all risk and compliance needs.

ORACLE FINANCIAL SERVICES LENDING AND LEASING 2

Oracle Financial Services Lending and Leasing is designed for lending and leasing institutions who aspire to have a low total cost of ownership and high operational effciency while using a single integrated lending and leasing solution. The solution helps fnancial institutions achieve their business goals faster by:

• Reducing cost of technology

• Enhancing seamless workfow across departments

• Reducing training cycles with an easy user interface

The Oracle solution offers features that take lending and leasing institutions closer to their business goals.

COVERAGE ACROSS LENDING AND LEASING PROCESS LIFECYCLE GIVES AVAILABILITY ON ONE SINGLE PLATFORM

Oracle Financial Services Lending and Leasing provides seamlessly integrated lifecycle processing modules i.e. Origination, Servicing and Collections. It offers:

• Multi-channel originations coupled with out of the box integration for all stakeholders

• Improved customer experience with a comprehensive dealer and vendor servicing

• Improved default management with a comprehensive collections engine

Total open automotive loan balance in the US in 2018 reached a record high of $1149 Billion with Credit Unions witnessing the highest growth in the industry.

- Experian

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To attract and retain new age borrowers, lending and leasing businesses need to rethink their operations. They require to

embrace new ways of executing originations, servicing, and collections by using emerging

technologies.

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COMPREHENSIVE SOLUTION OFFERING A BROAD RANGE OF CAPABILITIES AND PROVIDING A GREAT COVERAGE

• Loan: The solution offers wide and deep capabilities for lending and supports a variety of loan types right from home loans to vehicle loans to personal loans to SME loans. This module offers seamless integration between Origination, Servicing, and Collection modules to address the needs of captives and all types of lenders such as Deep Subprime, Subprime, Nonprime, Prime, and Super Prime lenders.

• Lease: The leasing module of the solution has been designed keeping in mind the fnancial requirements of millennials. It supports usage based lease for items such as cars for which lease can be charged as per number of units consumed. The solution also supports renting based leasing which offers the option to charge based on the duration for which the asset is used. This module also offers support for usage based leasing, traditional leasing, equipment rental, and ever green lease options for equipment fnancing companies. It provides the options for global methods of EMI calculation, choice of fexible repayments and attached promotions, variable interest rate, early termination with validation, security deposit adjustment against arrears, and lease account securitization.

• Line of credit: Oracle Financial Services Lending and Leasing offers a Line module which addresses credit card billing that falls under ‘Line of Credit’. This module offers the facility of open ended accounts wherein a certain amount is given as a limit and the re-instation of that limit is based on usage and payment on that account.

• Across currencies: Oracle Financial Services Lending and Leasing provides global support with currency compatibility with the US Dollar, Indian Rupee, British Pound, and Euro.

• Across geographies: the solution works with a focus on the North American market but also offers capabilities for Europe, Asia, Africa, Central America, and Middle East market.

• Across types of organizations: the lending and leasing solution is a one platform solution for various businesses such as non-banking fnancial companies, banks, other fnancial institutions, tele communication frms, auto captives, alternative fnance companies, healthcare fnance companies

For years, a familiar group of established captives and lenders have dominated the auto lending industry based on buy rates, credit risk appetite and dealer service. Instead, a new group of alternative lenders and alternative transportation providers (led by business strategies more akin to Silicon Valley start-ups) are disrupting the status quo. By putting the consumer back in the driver’s seat, they are empowering consumers with innovative mobility and transparent fnancing alternatives. Technology is redefning the automotive sales and fnance landscapes.

- PWC

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The evolution of such mobility and fnancing options coupled with increasing regulatory oversight, operational risk management and consumer expectations are dramatically changing the rules of the road, forcing industry participants to redefne and adapt to their business approaches.

- PWC

CATERS TO THE BUSINESS NEEDS OF ALL STAKE HOLDERS

Oracle Financial Services Lending and Leasing offers capabilities to suit the requirements of all stake-holders right from the staff and management to dealers to end customers. The solution addresses the needs of all components of the consumer lending lifecycle. It delivers enhanced user experience through solution enablement across channels, providing a single lifecycle processing, quick credit scoring and decisioning. Staff productivity can improve with superior operational control, ease of product modifcation for a quick product launch, automatic alerts and notifcation frameworks for pending items, and consistent real-time customer data across all access points. It keeps the management team informed through personalized views of the business, dedicated dashboards for performance insight and provides an effcient risk and compliance management tool.

EFFICIENT OPERATIONS PROVIDE FASTER TURNAROUND

Oracle Financial Services Lending and Leasing has a state of the art, n-tier, service oriented architecture (SOA) with a browser-based user interface, a back-end relational database, and a middle tier of business components. The solution uses RESTful web services that provide faster processing and better operational effciency. In addition, Oracle Financial Services Lending and Leasing brings together a robust technology platform and extensive experience in the fnancial services industry to provide your business with predefned processes that represent industry leading practices.

The solution is built keeping in mind the pressing need of lenders to enhance operational effciency. It offers:

• Very quick turnaround time on credit application decision making

• Highly effcient mechanism to plan and execute daily back offce operations

• Effcient processing even under high volumes

FLEXIBLE DEPLOYMENT OPTIONS ON CLOUD AND ON PREMISE

Oracle Financial Services Lending and Leasing provides fexible options for deployment on premise or on cloud. Built on Oracle’s highly elastic, simple and, secure Cloud platform, Oracle Financial Services Lending and Leasing Cloud Service enables lending institutions to address complex and dynamic regulatory and compliance requirements including data residency and allows for quick and cost-effective roll out of core business services. Lenders can rapidly scale their business operations proportionate to their business growth.

This choice and ease of deployment offers several business benefts:

• Flexibility to match business model of the lender with option to choose from

• Leverages the comprehensive Oracle product portfolio to address business challenges specifc to lending and leasing

• Offering on cloud helps increase business agility, lower costs, and reduce complexity

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Growth continues to explode as borrower acquisition makes it challenging to keep up with investor demand. The number of platforms across asset classes is leading to increased specialization and requires platforms to more clearly defne their value proposition.

- PWC

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