What you need to know: SAP Fioneer S/4HANA Loans Management

SAP Fioneer S/4HANA Loans Management is an industry leading Lending platform used for managing diverse lending products and related operational processes. A proven solution with over 700 customers worldwide across banking, insurance, retail and cross-industry organisations. If you are new to SAP Fioneer S/4HANA Loans Management, here is a crash course in the platform.

In short, what is S/4HANA Loans Management?

SAP Fioneer S/4HANA Loans Management is a module within SAP S/4HANA system that provides businesses with a comprehensive set of tools for managing their loan processes. This includes loan origination, disbursements, servicing, and collection, as well as accounting and reporting functionality. The module is designed to streamline and automate loan processes, improve operational efficiency, and enhance customer experience. With simple, compact architecture it offers ease of implementation, low total cost of ownership and caters for all lending types. It is especially useful for financial institutions who operate a diverse loan book, such as development banks, SME lenders, commercial banks, micro-finance lenders and credit unions, but can also be utilised by any cross-industry organisation that offers loans to support their wider business model i.e., financing of retail or wholesale goods.

What are the key features and functionalities of the solution?

Some of the key features and functionalities of SAP Fioneer S/4HANA Loans Management include:

1. Supports the end-2-end loan life cycle:  comprehensive set of features spanning application, fulfilment, creation, disbursement, collection, on-going servicing, and settlement. Enabling lending institutions to leverage ‘‘out-of-the-box’’ best practice processes.
2. Enterprise platform: ability to configure and offer a broad range of loan product types across different business units or jurisdictions on a single instance, enabling a low TCO with ability to scale.  Leverage SAP S/4HANA technology that underpins 90% of financial transactions worldwide.
3. Servicing exceptions: complete set of exception handling processes spanning roll-over, deferrals, extend term and payment plan change - enabling lending institutions to better automate their loan book, and reduce time to disburse.
4. Integration with other SAP modules: S/4HANA Loans Management is fully integrated with other SAP S/4HANA modules such as Financial Accounting (General Ledger), Controlling, Collateral Management and Treasury Management, providing a comprehensive solution for managing loan processes within an organization, without the need for complex integration.
5. Collateral Management: Businesses can manage collateral information and monitor the status of pledged assets such as property, equipment, livestock, crops and securities.
6. Risk Management: S/4HANA Loans Management includes risk management features that allow businesses to assess and mitigate credit risk, evaluate creditworthiness, and monitor loan exposure in real-time.
7. Accounting and Reporting: The module supports accounting processes related to loan management, including accounting entries, interest accruals, and loan impairment calculations. It also provides reporting capabilities for loan portfolio analysis and regulatory compliance.
8. Embedded machine learning: introduce innovation and efficient back-office processes by leveraging ‘out-of-the-box’ machine learning capabilities.

Overall, SAP Fioneer S/4HANA Loans Management provides businesses with a centralised and streamlined solution for managing loan processes, reducing operational costs, improving efficiency, and minimising risks.

Why should organisations consider implementing or upgrading to SAP Fioneer S/4HANA Loans Management?

Here are some reasons why organisations should consider implementing or upgrading to SAP Fioneer S/4HANA Loans Management:

• Enhanced efficiency and productivity: S/4HANA Loans Management offers a range of features and functionalities that can help organisations improve their efficiency and productivity. With streamlined loan processing, automated workflows, and real-time monitoring and reporting, organisations can save time and resources, reduce manual errors, and increase accuracy and consistency.
• Improved risk management: S/4HANA Loans Management provides organisations with a holistic view of their loan portfolio, enabling them to identify potential risks and mitigate them in a timely manner. The solution offers advanced analytics and reporting capabilities, enabling organisations to monitor their loan portfolio performance and identify trends and patterns that could impact their bottom line.
• Better customer experience: S/4HANA Loans Management enables organisations to provide a seamless and personalised customer experience. With real-time access to customer data, organisations can provide timely and relevant information, improve communication and engagement, and enhance overall customer satisfaction.
• Increased flexibility and scalability: S/4HANA Loans Management is designed to be flexible and scalable, enabling organisations to adapt to changing business needs and market conditions. The solution supports a wide range of loan products and can be easily configured to meet specific business requirements.
• Lower total cost of ownership: S/4HANA Loans Management can help organisations lower their total cost of ownership by reducing the need for manual processes, eliminating redundant systems and processes, and improving overall efficiency and productivity. The solution also provides organisations with a single, unified platform for managing their loan portfolio, reducing the need for multiple systems and applications.
• Channel agnostic: S/4HANA Loans Management is user experience agnostic, and has been integrated into over 30 different customer relationship management (CRM) and origination applications. It’s open architectural design and easy to consume API’s has enabled the product to establish itself well, at a time where lending institutions want to own the user experience, or leverage their existing user-journeys.

What can you expect from working with bancon?

As the original developers and architects of the standard  SAP Financial Services solutions, no one is better suited to support you with your upcoming or in-flight SAP or SAP Fioneer implementation. Leveraging our global delivery capability and deep knowledge of both the technology and financial services industry, the products we design, develop and implement become standard SAP and SAP Fioneer solutions used and  trusted by millions worldwide.

We have been enabling lending institutions innovate using S/4HANA Loans Management, and predecessor SAP CML, since its foundation, supporting SAP to deliver its standard roadmap and codebase and shaping the future by supporting SAP Fioneer to plan. Our focus has seen us become one of the world’s largest privately owned SAP Loans Management & Collaterals teams, offering services spanning advisory, development, implementation, migration and application management support. Check out some of our client success stories.

If you’d like to find out more get in touch with Marinda Fullard and find further reading on the solution here