In a Nutshell: Mindtree, a software provider and IT consulting company, developed its Disaster Loan Management (DLM) Solution for lenders participating in the Small Business Administration’s Paycheck Protection Program (PPP). The DLM Solution, an extension of the company’s Turbo Lending platform for SBA loans, provides customized, preconfigured forms for PPP lenders and borrowers. By quickly creating the DLM Solution, Mindtree affords lenders a timely tool to help deliver seamless, digital-first lending during the COVID-19 pandemic.
The financial devastation from the coronavirus is everywhere, but nowhere worse than in the United States. Congress has created a couple of programs to mitigate at least some of the financial damage caused by COVID-19.
One of these, the Paycheck Protection Program (PPP), uses the Small Business Administration (SBA) to guarantee loans to medium and small businesses that maintain their staff levels. Congress recently extended the original PPP to run through August 8.
Mindtree is a software developer and IT consulting company founded 20 years ago. Headquartered in India and New Jersey, it has worldwide reach, including a significant presence in the U.S. It competes with some of the world’s best high-tech firms across a variety of industries and clients.
For example, it has a strategic partnership with Salesforce, the world’s leading customer relationship management (CRM) software. Mindtree developed a platform, known as Turbo Lending, that integrates with Salesforce to help lenders and applicants arrange SBA loans. To support the influx of PPP loan requests, Mindtree extended Turbo Lending to include a Disaster Loan Management (DLM) Solution that applicants and lenders can use for PPP loans.
“Turbo Lending is a cloud-based solution that works on Salesforce technology,” explained Pankaj Choudhary, Head of Banking and Financial Services at Mindtree. “No physical hardware or software is needed to set it up. Customers can use their existing Salesforce licenses or sign up with Salesforce and start using the platform. The adoption of Turbo Lending does not require any technical expertise or changes to existing business processes. It flows to adapt to banks’ needs, making adoption an easy process.”
DLM Leverages Mindtree’s Turbo Lending Platform to Accelerate Loan Delivery
This platform has preconfigured and prebuilt forms for SBA PPP, 7(a), and 504 loan applications. It is backed by prebuilt workflows and rule engines to perform credit analysis to help bankers make accurate decisions.
Furthermore, Turbo Lending expedites the necessary paperwork the federal government requires to complete the loan authorization process from the SBA. It provides configurable underwriting workflows and verifications of collateral as required. Turbo Lending also processes customer loan forgiveness requests for an end-to-end SBA process flow.
The traditional approach to launching any banking product involves a long process to reconfigure and retune the whole IT stack. With the Turbo Lending approach, launching a new loan product is easy.
By leveraging Salesforce, Turbo Lending’s DLM Solution serves the interests of borrowers and lenders through a loan origination system that unifies multiple systems and interfaces. Turbo Lending identifies high-risk customers, manages the different processes and procedures across parent and subsidiary banks, integrates with multiple vendor management systems, and streamlines cumbersome system maintenance during the onboarding stage — all challenges the banking and financial services industry usually contend with.
Turbo Lending DLM gives business managers control to set up the product and its associated forms and flows.
“Everything is configurable,” said Choudhary. “Turbo Lending disconnects the whole back-end layer from the frontend and abstracts the interface to provide faster time to market. With traditional onboarding, it takes eight to 20 days to onboard a commercial loan, whereas using Turbo Lending, application processing time goes down by at least 60%.”
Mindtree’s DLM Solution Offers a Rich Set of Features
Mindtree’s Turbo Lending solution easily integrates with core banking systems using industry-standard and enterprise-approved security protocols. It consists of a Salesforce accelerator pack that sits atop the lender’s loan origination system, allowing for quick launch.
Other features and capabilities of the Turbo Lending solution include:
- Turbo Lending provides a uniform platform across a bank and its subsidiaries for customer onboarding, loan origination (retail/corporate), and retail banking offerings such as deposits, IRA, CDs, credit card offerings, etc.
- The platform helps identify high-risk customers, giving banks a competitive edge before they sanction any credit to high-risk or default customers.
- Banks can also eliminate duplicate processes Customer Due Diligence, Negative List, Blacklisted, and Know Your Customer checks. All credit score checks take place through the Turbo Lending platform.
- The platform helps reduce license costs by eliminating the need for multiple software platforms.
- Banks can provide better rates and more cost-effective products based on customer needs.
- The platform helps banks cross-sell and upsell different offerings from its subsidiaries.
These features provide lenders with the ability to digitally provide a transparent, seamless lending process. Turbo Lending DLM streamlines a lender’s processing through secure configurations and aggregation processes. Users experience a quicker turnaround time and lower costs, especially when accessing multiple external systems.
“Since the solution checks off all compliance boxes, adopting Turbo Lending is a simple and safe process,” said Choudhary. “The Turbo Lending solution interface also supports mobile devices so that customers and bankers can interact on the go.”
The Turbo Lending Platform Handles a Wide Variety of Use Cases
The primary use case for DLM is to provide support for the SBA’s Payroll Protection Plan. However, the DLM funding solution is based on the Turbo Lending platform. That means that other implementations of the platform will be highly usable post-pandemic as a solution to everyday challenges banks face when onboarding new products, customers, or partners.
The Turbo Lending platform is effective for the following use cases:
- Instant application processing for credit cards
- Bank account openings
- Insurance quotes and insurance onboarding
- Onboarding refinance requests
- Customer needs assessments and suggesting the right banking product
- Onboarding customers on multiple products through a single application form
- Instant decisions on financing loans (both retail and commercial)
- Onboarding partner products such as insurance, credit cards, etc.
- Onboarding use cases where applications go through multistep approval processes
These use cases share numerous, quantifiable benefits.
The platform reduces operating costs by up to 30% through its cloud-based implementation. Faster loan processing assures organizations of a 20% improvement in staff efficiency. Customization costs are cut, and a higher ROI is realized sooner due to a myriad of features built into the Salesforce platform. Built-in workflows are configurable, and robust scalability accommodates new applications and products.
“Our Turbo Lending solution has ignited interest from all tiers of the banking system, as it is configurable and highly relevant to banks during this time,” said Choudhary. “We are currently running marketing campaigns and are already receiving queries from many institutions about demonstrating the solution, which will ultimately lead to adoption.”