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Temenos: Lack of tech is slowing CLBILS loans processing

The UK government’s financial support package for medium and large companies impacted by COVID-19 is heavily dependent on the right technology to process applications fast enough, according to the CEO of Temenos.

The Coronavirus Large Business Interruption Loan Scheme (CLBILS), the UK government’s plan for offering financial support for larger businesses, was announced by the Chancellor Rishi Sunak last week and launches today, 20 April.

Max Chuard, the CEO of Temenos

Max Chuard, the CEO of Temenos

The plan allows businesses with a turnover of more than £45 million to apply for government-backed support, while companies with a turnover of more than £250 million can borrow up to £50 million from lenders. The measures come on top of existing support plans COVID Corporate Financing Facility (CCFF) and the Coronavirus Business Interruption Loan Scheme (CBILS).

Max Chuard, the CEO of the banking software provider, is drawing attention to the use of outdated tech.

“One of the main reasons for the slow pace of funds dispersal in the UK with the CBILS programme is lack of the right technology. Call centres are ill-equipped to cope with demand and in many cases the application process is arduous, requiring applicants to download a PDF, print, complete, scan and send it back,” he said.

However, Chuard noted, the digital technology exists which can enable the rapid processing of loans applications. Temenos used less than a week to help US banks and credit unions accelerate loan applications to small businesses under the equivalent US scheme, the Small Business Administration Paycheck Protection Program (PPP).

“In this time of disruption, it is vital that banks use the latest technology to speed up the digital onboarding and processing of loans. In doing so, banks are able to save UK businesses’ from collapse and help to safeguard the economy.

“Manual intervention significantly slows down the processing of applications, but using Explainable AI (XAI), for example, can expedite and dramatically improve accurate decision making, helping frontline staff to streamline and automate manual processes and process huge volumes of applications faster. Most importantly all XAI automated decisions can be explained in human language as they take place to the bank employees, the customers and the regulators,” the Temenos CEO said.

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