As the traditional functional business management model is gradually fading into the margins of history, the leading positions are taken by solutions that implement process management of the enterprise. That is, web solutions for automating business processes.
A business process should be understood as a certain set of actions (steps, stages, functions) that are carried out in a specific order to achieve the ultimate goals of the company. By automating and standardizing these actions, it is possible to establish effective communication with customers and ensure continuous dialogue between departments in the company. And, as a result, there will be even more customers and the profit of the business will be increased.
How Automation Can Help Microfinance Companies?
In the current economic conditions, private consumers and small businesses are increasingly experiencing the need to use borrowed funds. But the banking system is unable to fully meet this demand. Firstly, lending for small amounts is becoming less and less interesting service for banks due to low profitability. And secondly, the procedures for issuing loans are constantly becoming more complicated in order to reduce risks. High requirements make bank loans unaffordable for many categories of borrowers. But in case of difficulties in obtaining a loan from a bank, microfinance organizations come to help consumers and entrepreneurs.
Microfinance organizations specialize in small consumer loans. They provide a borrower with small funds for a short period of time. Finnish companies, one of which we will talk about further, call it pikavippi. It’s literally translated as quick-tip loans. Such companies are much more flexible in servicing their clients than banks, so their client base is growing dynamically. As the business develops and scales, the automation of microfinance organizations is becoming increasingly popular, which is aimed at improving the quality of financial and accounting, as well as reducing the risk of losing their funds.
Business automation is the delegation of routine processes to automated tools. Many different business processes can be automated: calculating sales and profits, project management, working with personnel, communicating with customers, placing orders, administering a website, and so on. Modern cloud technologies provide an optimal model for automating all businesses. The versatility of the cloud solution lies in the fact that it is easy to adapt it to the necessary tasks of a particular organization by adding new functions and modules.
There can be many examples of processes where the use of business process automation is appropriate. Companies that work in finance, human resources and marketing can be divided into various processes, some of which can be automated. Business process automation cases are very different. For example, inlaina-finance.fi, a company that compares loans in Finland, thanks to the automation of business processes, it became possible to:
- automate the collection of information about the creditor;
- automate the processing of reviews;
- compile information about the lender from various sources, including combining data from several testers into a common report;
- search for new popular companies to add to the rating;
- update dynamic data – loan conditions, rate, amount, term, etc.
Good business organization starts with building a lightweight, intuitive service for 24/7 communication between departments, colleagues and management. If you agree on changes to the layout, add functionality to the product or sign an agreement with the client only after the planning meeting at 9:00 on Monday, then profit growth and enterprise development are unrealistic. But access to a unified knowledge base, tasks and contacts will speed up work, allow all departments to operate in a single flow, and managers – to analyze reports and evaluate the productivity of colleagues, upgrade the algorithms for interaction between departments and redistribute tasks without interrupting production.
Automation Will Be Useful For Any Microfinance Company
Business process automation is needed to scale any business. As the company grows, the scope of work also increases dramatically. Here’s why companies simply cannot do without modern solutions as they are able to:
- Increase profits. Business process automation allows you to serve a larger number of customers with fewer employees. When routine tasks are organized using special programs, human participation is needed only in non-standard situations.
- Save time. Some tasks, for example, the distribution of orders between managers, do not bring money to the company at all, but they need to be done, otherwise all processes will stop. Automating these tasks helps employees get more involved in activities that require creativity or profit.
- Improve the efficiency and accuracy of processes. There are processes in which accuracy is very important.
- Improve processes. Some business processes are either very expensive or impossible to handle manually. For example, calling all customers. Automation takes the company to a new level of personalization in successful working with clients.
We can conclude that loan automation can become an excellent solution for microfinance companies as the system will coordinate the signing of contracts with clients and automatically generate other important documents.