Lendsqr Logo

Request a Demo

Highlights of this story​

5 business activities lenders must monitor daily

business activities lenders must monitor

There are key lending business activities to monitor and reports to generate and review daily to ensure your lending business is on the right track. Lending is serious and sensitive business and must be conducted with the utmost attention to details. The last thing you want is to have put in so much effort into setting up your business but have poor operational discipline (monitoring and control) run it into the ground faster than you can keep up.  Especially as a digital lender, where technology increases the ease of access to your loans and will most likely result in more activity than running solely offline. 

Loan performance

When it comes to lending, your priority is to get your money back and keep your non-performing loans (NPL) ratio low. To ensure this is on track, you have to generate reports to monitor loan performance daily. This report will give you insights into the number of loans repaid and those that have yet to be repaid. Bonus points is that the results can also be grouped according to borrowers’ demographics and characteristics. This way you can analyze which borrowers are more likely to repay and adjust your loan decision system to accommodate more of those types of borrowers. 

Consequently, this analysis should be done as often as possible so that you can intensify efforts to ensure repayments. Note that no matter how poor the results might be, you should focus on recovering loans ethically.

Disbursed loans

This is your top recurring activity as a lender and it’s only sensible to record and review this daily. It’s imperative to be able to track all the loans you give out on a daily basis; complete with the borrower’s details, loan details (amount, interest rate and tenor) and due dates. 

You can compare disbursements across certain periods and ask important questions. Plus, you need to know just how many loans you are giving out on a daily basis. Are you spreading your resources thin? Or should you be giving out more loans?

Loan requests

A comprehensive loan request report gives you a breakdown of all loan requests that have passed through the system and allows you to monitor the average approval rates. .

If your approval system is manual, you may want to check your loan requests queue as often as every couple of hours if possible. It doesn’t bode well for reputation if borrowers get the impression that your loan process is slow and unable to cater to their needs. 

Daily due loans

Your work isn’t over until you’re paid up for the day. It’s not the best idea to rely on borrower’s to remember their due date and repay on time. Even if their memory doesn’t fail them, their will might. Apart from the usefulness of daily due loans reports to inform you of how much you have in unpaid loans, they will also come in handy in knowing who to follow up with and pursue to ensure loans are repaid when due. 

If a borrower fails to repay on the due date, their loan automatically becomes a past due loan and this needs to be monitored even closely to prevent the loan from going into default. 

Repayment transaction performance

If operating digitally, it goes without saying that repayments will be done online. This means there might be some technical errors once in a while that may bounce payments and give the impression of loan default. 

This is where repayment transaction performance comes in. How many loan repayments were successful? How many failed repayment attempts occurred? Why? This is a very important report and can prompt proactive support for customers who may be experiencing issues with repayment. A well done report can help you pinpoint specific card, wallet and system errors that prevented repayment.

These reports can be summarized in a business dashboard

The importance of a business dashboard can’t be overemphasized. A dashboard can give you the top information about your business performance at a glance. This comes in very handy for quick reviews of the reports above and a range of other indicators including user signups.

Dashboards give a visual representation of all these indicators which makes it easier to get the gist of how well or poorly your business is performing in one look. This often prompts a deeper dive and corrective action if need be. Additionally, if you have introduced new loan products, made changes to your loan process or even increased your marketing activities, your business dashboard can show if these activities have had any impact on general performance. 

Comprehensive lenders’ business reports are available on Lendsqr

There are definitely not enough hours in a day to manually generate and update the necessary reports to monitor your business performance. It’s an impossible task. But Lendsqr is up to the task. Every lender has access to several detailed reports that keeps you apprised of all key happenings in your business at all times. The system  generates these reports automatically and are therefore as accurate as possible. There is no room for human error. 

All you have to do is sign up for free and start lending on Lendsqr to access these reports. You can also reach out to growth@lendsqr.com to find out more about the reports available to you.

Share On

Share on linkedin
Share on twitter
Share on whatsapp
Share on facebook

Stay connected to know more

Be the first to know about new products or other company announcements.

Next Read