Loan Adjudication vs. Loan Origination. What’s the difference?

[vc_row][vc_column][vc_column_text]Adjudication vs. origination: what’s the difference? This week we’re going all the way back to the basics. At a high level, origination is gathering information, while adjudication is the judgement made based on the information gathered.

When we refer to loan origination, we are speaking to the process of a borrower applying for a loan and a lender processing that application. Traditionally, this process is all manual. It involves a considerable effort on the part of the borrower to submit all their necessary documentation by hand, AND an extensive amount of work for the loan officer to review and complete all required paperwork in order to process the loan.

During the adjudication process, the final decision can take a significant amount of time; anywhere from hours to days, and in some cases, weeks, due to the inefficient workflow that involve manually adjudicating a loan.

These processes, while time-consuming, can be automated, thus reducing the time it takes your financial institution to process applications, big or small. This means you can grow a quality loan book efficiently, while freeing up account managers and loan officers to spend more time on relationship building with your clients or members.

Increasing the speed and accuracy of small business lending and loan underwriting through automation, credit risk AI and cash flow analysis is at the heart of JUDI.AI. We help our clients approve 20% more loans with sharper SMB credit risk analysis and automation.

Want to know more? Book a demo today.[/vc_column_text][/vc_column][/vc_row]