Banking globally including in Australia is getting disaggregated, deconstructed and disintermediated. The lending industry is not much different. New age digital players have reimagined lending with new value propositions and non-linear business models to unlock multiple growth opportunities. However, loan lifecycle interventions for a borrower beyond origination (dealing with dynamic product
reconfiguration, servicing, delinquency and hardship management, schedule restructuring, loan product diversification/innovation) are still unfulfilled service experiences today, constrained by dependence on core systems, yet to be modernised.
Pennant Technologies is a global innovative financial technology company that powers the lending operations of global banks, mutuals and non-banking financial institutions.
“Pennant Technologies - headquartered in Hyderabad, India - through its flagship, future-ready lending platform, pennApps Lending Factory, has been helping banks, non-bank lenders and financial institutions in India, the Middle East, and Asia transform their lending operations for the digital economy. Pennant launched its Australia operations in 2023 and is engaging with large and regional banks, embedded finance & financial wellness fintechs, non-bank lenders, mutuals and challenger banks to support their lending transformation needs. The company was recently recognised among Asia’s Finest Fintechs at the Asia Fintech 2023 Awards, Singapore.
Pennant Technologies co-founder and CEO Rama Krishna Raju says Pennant Technologies started exploring Australia 8 months ago and has done its research into lending platforms here. “We see nuanced differences from other markets,” Raju told Banking Day. “From the perspective of lending as a value chain and being delivered by a platform based business model, we definitely see synergies with other emerging markets.”
State of the Lending Market in Australia
Over the years, Australian financial institutions have developed custom and bespoke solutions and also used core banking and/or loan origination software around their different business segments: Mortgage, retail, SMEs and corporate all have their own line of business specific lending solutions.
However, as market dynamics are changing with new business models, process uncoupling, and product unbundling, financial institutions are unable to meet the agility, adaptability and non-linearity needs of lending as a ‘lifecycle’ beyond origination, with their existing technology stack. - leading to the need for highly composable, scalable and resilient lending operations.
penApps Lending Factory offers financial institutions and fintechs a cost-effective alternative solution with an integrated lending platform for all the lending needs including mortgage, personal, auto loan, SME, Wholesale, Commercial, and other credit lines. It is very much a value-chain approach to the financial institution’s business model.
This will address the unprecedented challenges facing their lending operations with multiple solutions platforms. These include fragmented processes creating workflow issues, data and process challenges; multiple platforms for loan lifecycle stages hampering operations; customisation and configurability issues limiting customer requirements and technology architecture creating security concerns. In addition, non-bank lenders and mutual banks in Australia now have to contend with a raft of regulatory and compliance issues, including the extension of CDR to the Non-bank lenders and Mutuals.
The Lending Factory is designed to address these regulatory and compliance issues. Banks and financial institutions in other markets using the pennApps Lending Factory have found that it harmonised the loan origination and underwriting processes for faster ´time to cash’ while providing interfaces for other systems to communicate in a controlled environment; it increased savings in operations including reduction in underwriting and documentation costs. There was a huge increase in loan processing capacity and a strong reduction in average servicing time and customer acquisition costs.
The Lending Factory’s Lego block-like functionality & highly composable architecture allowed clients to swiftly launch new loan offers with customer-centric workflows tailored to customer journeys.
For instance, in the highly competitive Indian market, pennApps Lending Factory helped a large financial institution launch an innovative flexi-loan offer which enabled 23X loan portfolio growth and gain market share.
Pennant’s lending Factory has been benchmarked to perform seamlessly at any given point of time for 50 Million loan transactions and with 10000 concurrent users.It offers Cloud native functionalities and can be quickly deployed on the cloud to gain flexibility and scalability advantages. Lending Factory’s future proof architecture enables technology agnostic capabilities which offers flexibility to integrate with existing technologies within the bank and also adapts to technological advancements with ease. Over a sustained period of use, pennApps Lending Factory brings estimated cost advantages to the tune of 30%.Its repository of 220+ APIs across the loan lifecycle enables banks and financial institutions to deliver differentiated customer experiences.
As the lending industry is being reimagined to new products, operating models and experiences, increasingly there is a need for banks and financial institutions to shape their lending stack to the demands of the market including quickly configure innovative loan products, deliver differentiated experiences and scale their business through a resilient lending operation.
Pennant Technologies, a proud member of Fintech Australia and LIXI lending standards in Australia, recently participated and showcased its future-ready lending platform, to banks, financial institutions and fintechs, at Intersekt 2023, Melbourne and COBA 2023, Gold Coast events.
Customer Stories
Trusted by Customers
- Pennant’s lending platform, encompassing loan origination, servicing and delinquency management, is being used by large Non-bank Finance Company in India for all its loan products including Mortgage, Retail, Corporate, Consumer, BNPL, Microfinance, etc. The financial institution was able to witness 7X growth in loan products over a period of 6 years
- A leading South Asian Mortgage Company implemented Pennant’s lending system to drive 2X customer engagement and deliver sustainable mortgage operations
- Pennant’s Loan Servicing System helped a Financial Institution leverage Marketplace Model and Network Effects to register 4X retail loans growth.
For a business value assessment workshop and a solution demo on how to transform your lending operations, reach out to Satish Wadhwa, Growth Partner, Pennant Technologies at Satish.w@pennanttech.com (+61 478 486 951)