Recently, I spoke to one of the loan officers at a Financial Institution (FI) and was shocked to hear this!
Please read on to find out what the shock is!
Recently, the FI implemented software for onboarding borrowers digitally.
Instead of making photocopies of Aadhar, PAN, or bank statements, the software can now pull this information via an API, making the process much quicker than their previous manual method.
So, where is the shocking part?
Even after implementing the software, the management team is still insisting that loan officers continue the physical documentation process, which means they have to do two activities:
1) Collect photocopies as they did before.
2) Enter the details into the software.
I don’t understand why they want to do two repetitive tasks.
I asked them why they were doing it twice, and their response was:
1) For safety reasons, they want to keep physical photocopies as a backup. (Which is safer, physical or digital?)
2) They need to showcase these details when an audit is conducted. (System reports can also be presented during audits.)
The mindset of the management team should be changed, or loan officers’ lives will continue to be a struggle.
Is this shocking to you, or is it normal in other FIs?