MM Leasing – Solution for Origination & Monitoring of Leasing Contracts and Management of Assets

Responding to key leasing industry challenges

Slide Leasing company staff are overwhelmed by numerous products, rules, demanding customers, trainings and sales expectations. Opportunities for adequate awards are reduced. For this reason, leasing company staff and leasing companies are exposed to growing credit, operational, regulatory and commercial risks. To respond to this challenge, we provide systemic and automated support to product selection, systemic presentation of business and regulatory requirements and an automated check of the numerous risk management rules. This simpler and safer solution contributes to the growth of sales and increases customer satisfaction with an acceptable level of risk. Efficiency of risk management Slide Data management MM Leasing is based on data as a value-generating asset. This approach allows for a high level of automation of data collection and processing, an integration with other systems and an increase in the number and quality of automated controls. This leads to a significantly shorter ‘time to yes’ and ‘time to cash’ for customers. Slide Changes in the regulatory framework are frequent and comprehensive, with challenging implementation deadlines (e.g. EBA Guidelines on loan origination and monitoring EBA/GL/2020/06). Credit process support systems have to be flexible and modular enough to respond to such challenges. MM Leasing offers precisely such a modular and flexible solution. Regulatory changes Slide Customer support We use the advantages of MM Leasing to enable customers to define their needs in a simple way and to select from a range of offers that are specially tailored to their needs. Slide We have standardised and automated all processes, and have also merged the sales and risk management processes. This makes the overall process simpler, faster and more efficient, allowing for optimal risk and profitability management (including the optimisation of the number and structure of participants in the process). Process efficiency Slide Efficiency of digital channels Our approach enables the creation of an efficient digital channel that is able to meet customers’ needs for advice on best financing solutions, instead of being focussed only on the quick placement of a single, mostly predefined, product. Slide Efficiency of asset management The key competence of a successful leasing company implies efficient monitoring of the value of assets when approving leasing contracts, as well as the monitoring of subsequent changes in their value. For that reason, our solution allows for the monitoring of as many as four types of value curves per leased asset (e.g. for a passenger vehicle, the value curve can be so detailed as to encompass even the fuel type and mileage level). This supports the risk management process and the process of asset valuation and asset impairment, as required in accordance with IFRS 9 and IAS 39.

MM Leasing merges the customer’s and leasing company’s perspectives, allowing for the identification of an optimal product (or a combination of products)

Shorter ‘time to yes’ & ‘time to cash’

Thanks to the use of data instead of documents as a value-generating asset, MM Leasing allows for a high level of digitalisation and automation of processes. The controls built into the system make the process significantly faster and simpler.

More efficient sales

The use of a catalogue of products and a matrix of documentation and collaterals, a predefined set of rules and built-in controls leads to optimal support to sales staff.

Customer-tailored offers

By collecting information on customers and their needs, we facilitate the definition of an optimal offer for a particular customer, in a way that is uniform across all sale channels. This both increases customer satisfaction and possibilities to acquire customers.

Enhanced risk management process

MM Leasing has an automated data collection and processing system. It can check for more than 100 exemptions and it incorporates all business and risk management rules. This ensures that the analytical capacity can be focussed on the most relevant part of customers’ applications and allows for the reduction of operational and regulatory risks.

MM Leasing can be applied to any financing product and targets various customers and channels

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TYPES OF PRODUCTS

+ Financial leasing

+ Standard operational leasing

+ Fleet management

+ Public tenders

+ Products including vendor subsidy

+ Special products

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CUSTOMERS

+ Legal entities – corporate
+ Legal entities – SMEs
+ Private individuals
+ Sole traders
+ Professionals

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CHANNELS

+ Branch offices
+ Digital channels
+ Agents

MM Leasing – technical features of this solution allow for operational flexibility and efficiency

MM Leasing supports the end-to-end leasing process

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CUSTOMER
ACQUISITION

Involves new and existing customers who have contacted the leasing company with a quote request or who have submitted a financing application through any channel. If it is through a digital channel, the identification is performed by using artificial intelligence in line with PSD2 standards. By using a catalogue of products and a questionnaire, MM Leasing offers the customer an optimal combination of products or a single product.

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DATA
COLLECTION

Involves customer data collection from available sources. MM Leasing is integrated with both existing internal systems (core (e.g. Gemicro), data warehouse and others) and external systems (credit register, Bisnode, financial statements (GFI), PSD2 and others). At this stage, the necessary documentation is also collected, digitalised and enclosed to the file.

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LEASING PROPOSAL
PREPARATION

Involves the creation of a leasing proposal by a leasing advisor or automatically in the case of a digital channel. The preparation is easier thanks to the use of a catalogue of products, a documentation matrix and a matrix of collaterals, as well as value curves per leased asset. They all define standard terms and conditions at the leasing company level that are automatically transferred into the leasing proposal.

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APPROVAL

Involves automated formal and material controls (100+), an automated determination of the level of approval of the credit proposal and setting up the required approval path. Apart from automated controls, it is also possible to include human control. This phase implies the flow of the approval path, which includes decision-making staff and expert functions such as Risk Management, AML, Legal Office, etc.

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CONTRACTING &
DISBURSEMENT

Involves the process of contract verification, creation and signature, an automatic record creation in the core system, as well as the preparation for disbursement and the creation of a payment order which is forwarded to the core system.

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MONITORING

Involves the automated control of various early warning signals (ERW signals), support to regular annual control of customers (review), as well as rating and PD calculation (periodical or upon request). In addition, it involves the calculation of the present value per leased asset and the calculation of the necessary provisions or impairment according to IFRS 9 and IAS 39.

MM Leasing – a modular and flexible solution as a response to business and regulatory changes

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CUSTOMER
SUPPORT

FIT

  • Product selection and data entry
  • Identification of product combination representing an optimal ratio between customer needs and the leasing company’s objectives
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USER INTERFACE FOR LOAN
ORIGINATION & MONITORING

DATA COLLECTION

  • Customer selection and data collection
  • Documentation collection

APPLICATION DRAFTING

  • Transaction structuring (financial leasing, operational  leasing, public tender, etc.)
  • Application analysis and opinion preparation
  • Present value of assets

APPROVAL

  • Determination of approval path
  • Specific types of tasks (entry control, risk management, legal office, etc.)
  • Notification and escalation

CONTRACTING & PAYMENT

  • Contract data entry
  • Contract control process
  • Collaterals
  • Automatic creation of contract and payment orders in the core application

MONITORING

  • Entry of regular annual customer control (review)
  • Analysis of the customer and preparation of an opinion
  • Monitoring of the present value of assets
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CUSTOMER &
PARTNER INTERFACE

CUSTOMER ZONE

  • Product selection and data entering
  • Calculation depending on product conditions
  • User inbox
  • Application status monitoring
  • Documentation upload

ONLINE IDENTIFICATION & PSD2

  • Video identification
  • Comparing ID card photo with real time video
  • OCR text from ID card
  • PSD2 login to another bank
  • PSD2 transaction data collection from another bank
  • PSD2 AI scoring

SUPPLIER MODULE

  • Access rights
  • REST API
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COMMON
MODULES

DECISION-MAKING & SCORING

  • Calculation of customer PD and rating
  • No-go criteria and exemption control
  • Setting up approval level and approval path
  • Calculation of financial indicators

REGISTERS & CATALOGUES

  • Users and authorisations
  • Catalogue of products
  • Limit and credit lineregister
  • Matrix of collaterals
  • Documentation matrix
  • Value curves

DMS

  • Central entry of documentation
  • Required documentation checklist
  • Creation of contracts and supporting documentation
  • Automatic recognition of document type
  • Credit file

INTEGRATIONS

  • Master data and code lists
  • Calculation of repayment plan
  • Exposure and details on existing contracts
  • Collaterals
  • Automatic booking in the core system

360o CUSTOMER VIEW

INTEGRATIONS

  • Associated legal entities / natural persons
  • Exposure
  • Portfolio profitability
  • Fraud prevention
  • AML

Financial reports
and indicators

PD & rating

Early warning signs

ASSET MANAGEMENT

  • Calculation of present value of assets (as a basis for the calculation of provisions in accordance with IFRS 9)
  • Calculation of asset impairments, in accordance with IAS 39 (operating leases and inventories)

INTEGRATION WITH REPORTING SYSTEMS AND DATA WAREHOUSE