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Crisis Small Business Lending

The COVID-19 crisis has precipitated new government programs – such as the U.S. Paycheck Protection Program (PPP) and the U.K. Coronavirus Business Interruption Loan Scheme – designed to provide small businesses with immediate access to loans. Businesses are quickly applying, but banks are struggling to respond to the flood of applications.

Pega Crisis Small Business Lending helps banks:

  • Manage and respond to all loan applications in a timely manner
  • Adhere to the recent regulatory acts and guidelines
  • Leverage flexible, built-in rules to modify solutions as the crisis evolves

Learn more and get the app here.

Transcript:
[Presenter] As COVID-19 continues to spread, governments around the world have released new programs to provide small businesses with immediate access to loans, such as the U.S. Paycheck Protection Program. However, banks are struggling to respond to the sudden overflow of loan applications and to implement the new regulatory guidelines. Pega's Crisis Small Business Lending reference application can serve as a starting point and guidance for banks to build their own Pega applications to manage and respond to Paycheck Protection Program loan applications in a timely manner. Small to medium business owners can apply for a loan directly on the bank's website and provide preliminary information by first filling out a questionnaire which determines eligibility for the program. Pega automatically calculates the maximum potential loan amount and validates their eligibility, which helps reduce the number of invalid applications that get submitted to the bank, reducing workload on already strained resources. The applicant can then complete the rest of the loan application intake form and upload all supporting documentation online. Pega automatically validates their qualification for the program based on the guidelines from the U.S. Small Business Administration. The validation rules can easily be configured to address the guidelines of the other government programs. After the applicant completes all required information, the application is routed to the appropriate party at the bank for review and approval. The communication with customers is automated, including notification sent to the applicant, acknowledging receipt of their request and followup notices about the status and ultimate approval or rejection of their application. Notices can also include links for the applicant to return to their application if additional documents are needed, such as to submit verification that the loan funds were used for payroll costs and other government-approved purposes, to qualify for loan forgiveness. Your financial institution can then manage these requests and govern the timing and processing of each application, as well as the disbursement of the funds according to your own policies. All the while, Pega automatically maintains an audit trail of who completed each step and made every decision, if any future reviews are required. You can leverage Pega's easily configurable rules to validate and prioritize application based on factors such as the loan amount and customer lifetime value, and automatically determine the priority level for each of these applications at runtime, placing them in the process and queue appropriately. These rules can be delegated to bank managers with appropriate permissions so they can easily be maintained without the need for IT involvement to comply with the most current SBA guidance. As regulations evolve, you can ensure your organization swiftly adapts to new policies to provide your customers the support they need in this time of crisis. As a Pega customer, you can download and leverage elements of this application in your existing Pega environment to accelerate building your own application. Contact us today to learn how you can do this.


Tags

Industry: Financial Services Solution Area: Customer Service Topic: Customer Service

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