Loan collections are an essential element of the lender’s financial health and stability.
OCEN 4.0 introduces specialized roles, including collections partners, that can help reduce the burden on lenders.
Short-term lending products for marketplaces where Loan Agents also control the income-source for the borrower can use escrow-based-repayments to mitigate the collections risk.
OCEN 4.0 introduces auction based model where each loan application will be shared with multiple lenders.
Lenders rely heavily on Credit Bureau reports for loan underwriting and the traditional approach of doing a hard-pull by each lender may cause a reduction in borrowers score.
A consented soft pull done by the borrower’s agent emerges as the ideal path as it protects borrower’s score, yet keeps the borrower experience and transaction success rates high.
As a framework, OCEN 4.0 allows for 4 different ways of consent-based data-flows. Illustrated via the GST example.
Robust dispute resolution mechanisms are essential to the stability of lending operations and to prevent disruptions in the ecosystem.
Delays in dispute resolution can undermine trust between parties and disruptions to cash flow may cause significant impacts to the business.
OCEN 4.0 includes a dispute resolution process that optimizes for speed, effort minimization and consistency via standardized APIs, dispute file formats and SROs for mediation.