What is Open Banking System?
Open Banking System is a system where borrowers have access to pay online with very little or no manual intervention. This system is a boon to the money lending business as this technology will help save the time of the borrower and the lender. This system will also help in customer retention and businesses will see customer satisfaction and loyalty. This feature will also help to make the customer relationship stronger.
Jainam Software and Open Banking System
Jainam Software offers NACH, Auto Disbursement and Customer On-Demand Digital Payment
1: NACH:National Payments Corporation of India (NPCI) has implemented “National Automated Clearing House (NACH)” for Banks, Financial Institutions, Corporates and Government. It is a web based solution that allows interbank and high volume electronic transactions which are repetitive and periodic.
Jainam Software uses NACH System towards collection of payments pertaining to loans and deposits.
Jainam Software is integrated with NACH for automated clearing process and the process flow is shown in the diagram below.
NACH Process in Jainam Software
1: Create Borrower Profile or Borrower On-boards through lenders website
2: Lender Verifies e-KYC Documents
3: Lender creates a loan or Borrower applies for a loan
4: Lender receives the Loan Request
5: Lender Approves Loan
6: Once Loan is approved digital e-mandate is set through Jainam Software by clicking the blue button Set Auto Debit
7: Borrower gets an SMS for filling out the mandate Registration Form when the Set Auto Debit button is clicked
8: Once Registration form is submitted. It will go through NPCI for approval.
9: Status at this time in Jainam software shows Bank Approval Pending
10: Once the Bank approval is done. NACH is activated in Jainam software and the status shows Active in the software.
- Now Loan can be disbursed. Loan account is created.
12: Loan schedule is defined in NPCI. This means as per schedule, the amount will be transferred from the borrower bank account to financier bank account automatically.
2: Automatic Disbursement: Auto Disbursement Management is automatic disbursement or payout of funds from Financer’s Bank to Borrower Bank. This payout or disbursement is a direct bank to bank transfer.
Jainam Software and Automatic Disbursement
Bank Accounts of the financier and borrower are integrated by jainam software team. These accounts are digitally verified automatically by the lender in Jainam Software. Loan is disbursed from Jainam Software by selecting the appropriate bank account. On one disburse payout click, funds are automatically transferred from the Financer bank to borrower Bank. There is no need to pay cash, cheque, net banking etc.
Auto Disbursement Process in Jainam Software
3: Customer On-Demand Digital Payment: Customer On-Demand Digital Payment is a process where a borrower can pay online using the jainam software mobile app through payment gateway using Net Banking, Credit/Debit Cards and Any UPI( Google Pay, Phone Pe etc).
Payment Gateway Process in Jainam Software
A: Borrower downloads the Jainam Software Mobile app to login from mobile/Tablet or uses the link www.jainamsoftware.com/admin to login from desktop, laptop or tablet.
B: Borrower receives the username and password SMS from Lender.
C: Borrower Login to Jainam software using the username and password provided by the lender.
D: Borrower can see Loan Details and PayNow button
E: Borrower clicks on the PayNow Button. Once the PayNow button is clicked the Borrower is redirected to the payment gateway site
F: Borrower selects the payment method and enters all the details and clicks on Approve button
G: Once the Approve button is clicked payment gateway send the details of the Borrower payment to the selected bank
H: Borrower is redirected to the Jainam Software success page
I: Once the payment is successful it reflects in the Borrower login and the Admin login of Jainam software
J: Finally funds are settled in Merchants bank account.
Summary: To conclude, the Open Banking system in Jainam Software is very beneficial as it allows borrowers to pay online from anywhere at anytime. This ubiquitous system increases customer engagement and gives flexibility to the lender and the borrower to disburse funds and collect repayments. Borrower is at ease that at anytime of the day from anywhere he can do his repayment in a very secure and agile manner.