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What is nCino

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Harsh Said
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  • nCino refers to cloud based banking solution. nCino offers comprehensive support to financial institutions. These services include client onboarding, loan origination and management, and account opening, catering to a diverse client base that includes corporate, commercial, small business, consumer, and mortgage sectors.

nCino Supported industry segment

  1. Commercial Banking:

  • It refers to branch of banking that deals primarily with providing financial services to businesses, organization and individual customer. These services are designed to support financial needs of companies including loans, deposit accounts, and payment processing.

  1. Retail Banking:

  • Retail banking refers to branch of banking that focuses on providing financial services directly to individual consumers. Retail banks aim to meet the personal banking and financial needs of individuals and households.

  1. Treasury Management:

  • Treasury management refers to the process of managing an organization’s liquidity, cash flow, financial risks, and investments to ensure its financial stability and operational efficiency.

  • It is a critical function, especially for businesses, to optimize their use of funds and manage their financial risks effectively.

Commercial lending Overview

  • Commercial lending loans are provided by financial institutions to businesses or corporations to meet various needs such as expansion, equipment purchases etc. These loans are typically larger in size and may require collateral or guarantees.

What are Product Types:

  1. Line of Credit:

  • A line of credit is a flexible borrowing option where a business or individual can borrow money up to a pre-approved limit as needed. Interest is charged only on the amount used not the entire limit.

  • Works like credit card. Used for short-term needs like working capital or emergiency’s.

  • Example: A small business is approved for a line of credit of $50,000. In January it withdraws $10,000 to repay for raw materials. By February, it repays $5,000 leaving $5,000 outstanding. In March, it can still borrow up to $45,000 from LOC.

  1. Letter of Credit:

  • A letter of credit is financial document issued by a bank that guarantees payment to a seller (exporter) from a buyer (importer) as long as the seller meets the terms and provides the required documents.

  • Commonly used in international trades.

  • The Bank act’s as guarantor.

  • Example: An Indian company wants to import goods from U.S. supplier. The supplier is worried about payment risk. The buyer arranges for its bank to issue a letter of credit, guaranteeing payment if the supplier ships the good.

  1. Term Loan:

  • A term loan is a fixed sum of money borrowed from a bank, repaid in regular installments (monthly, quaterly) over a set period.

  • Suitable for funding large, long-term projects or investments.

  • A factory owner takes a term loan of $1 million to purchase new machinery. The loan is to be repaid over 5 years, with monthly payments of $20,000.

  1. Lease

  • A lease is an agreement where a business or individual pays to use an asset (e.g. equipment, vehicles, real estate) owned by another party (the lessor) for a specified period.

  • The lessee doesn’t own the asset but uses it in exchange for regular payments.

Retail Banking Overview

  • In retail banking, product types refer to the various financial products and services that banks offer to individual customers. These products cater to personal financial needs such as savings, payments, loans and investments.

Common Retail Product Types

  1. Deposits:

  • Money placed into banking institutions for safekeeping

  1. Automobile Financing

  • Sum of money a consumer borrows to purchase a vehicle

  1. Credit Cards

  2. Personal Loans

  3. Mortgage

Key terminologies in nCino

  1. Relationships:

  • Typically a customer, client, member or applicant. They can be associated to many things such as loans, loan products and deposits and treasury services.

  1. Product Package:

  • We can determine it as umbrella of all loans of an individual together. Example a user has personal loan after re-paying this loan he takes home loan and so on all of his loan comes under product package.

  1. Covanent:

  • Agreement between Borrower and Lender that is bank and customer.

  1. Collateral:

  • Used as a form of guarantee for a loan

  1. Questionaries:

  • These framework provides a generic framework that helps your bank to create unique questionaries that can be configured to display throughout nCino’s Loan process.

  1. Credit Memo:

  • This feature allows a lender to present relevant and material facts in clear, effective manner. It provides support during loan analysis for internal as well as external reviews.

Relationship Types:

  • As we know relationships in nCino is standard account object. There some types listed below of relationships, those are nothing but Record-Types in salesforce.

  1. Individual

  2. Lenders

  3. Business

  4. Household

Commercial Lending Process

NCINO Product Catalogue

NCINO Credit Action

  • Financial Institutions use Credit Actions (Renewals and modification) to change the terms of loans after it has been booked to the financial institution’s core system.

  • Change MEMO : Means what is changing from previous things. It is kind of a snapshot of loan.

Scenario: You approached a bank for loan then after some time you want to change the terms in loan.

  • Prior to loan approval : Changes can be made directly to the loan record.

  • After approval : Changes must be documented in a Change Memo and get it approved.

  • Loan Booked : Changes after the booking stage occur through Credit Action.

Main thing for Credit Action is Stage field should be “Booked“ and status should be “Open”.

NCINO Forms