DDaT22231 - Loan Management system

UKRI - Innovate UK Loans Limited is seeking to procure a loan management system to support the backend delivery of its Innovation Loans programme. The programme is expected to deliver 50-100 new loans/per year, supporting approximately 200 new Innovative UK businesses.

The aim of procurement is to:

• Procure the delivery of reliable, responsive and flexible loan management system;
• Procure a system which had evidenced capability to run loans of the same or similar type to Innovation Loans.
• Ensure the provider has sufficient capability to train IUKL users on the system and be dedicated to the account for up to 6 months to ensure the team are comfortable using the system.
• Ensure sufficient technical resource is available to onboard the loans to the system and setup integrations to existing IUKL systems.

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Objectives

Setup & Training

• Setup Collection of Direct Debits and associated process & procedures
• Setup of integrations with IUKL systems
• Setup access to UKRI - IUKL Capital & Operating bank accounts
• Configuration of IUKL product & scenarios
• Agree Reporting format & content (daily, weekly, bi-weekly, monthly, quarterly, semi-annual & annual)
• Dedicated staff for up to a period of 6 months to allow IUKL to take on administration of the loan portfolio, being able to test a number of scenarios with the support of the provider
• Detailed training documents to be provided
• SLAs for any system queries or developments during the life of the contract to be agreed

Training to include:

• New Loan On-Boarding:
• Load loans into Loan Management System (provide validation checks on loan profiles)
• Provide online access to a loan portal for customers
• Validate customer bank details and process Direct Debit details
• Generate letters and notifications to customer's. (Content and format to be agreed with the successful supplier upon commencement of the contract)
• In-life management:
• Process Drawdown Requests
• Confirm Drawdown payment to customer and IUKL via automated Disbursement Letter
• Collect daily interest payments via Direct Debit processing (daily reports should be accessible)
• Daily reconciliations of interest due versus interest planned (reports should be provided where available)
• Ability for the system to notify of any missed interest payments on the day they are missed
• Record, monitor and report on any missed payments or interest holidays (Arrears Reporting) Frequency and format to be agreed with the successful supplier upon commencement of the contract.
• Ability to charge interest daily and structure loans to any interest and repayment schedule specified by the lender
• System to automate Repayment Statements and any new letters, statements or account related communications during the life of the loan.

UKRI - IUKL reserves the right to introduce or amend Service Level Agreements and Service Credits throughout the duration of the contract, in agreement with the supplier.

Background to the Requirement

UKRI - Innovate UK Loans Limited is seeking a loan management system to support the Innovate Loan programme. Proposals are invited from institutions that can demonstrate:

• The ability for the system to manage non standard loans and be flexible in the ongoing management of these.
• Have a track record of handling different loan types and example of these in the system
• Proposals from firms who have a track-record of operating in an FCA compliant manner are welcomed but not essential.
• The ability for the system to generate and securely maintain and share current portfolio data with Innovate UK on portfolio performance, either self-service, at regular intervals and/or in response to ad hoc requests (Frequency and format to be agreed with the successful supplier upon commencement of the contract.)
• Ability and experience of integrating with other systems, such as Salesforce and DocuSign.
• Bidders are to note that anyone involved in the processing of the loans will be required to declare any conflict of interests and shall be expected to sign the Non-Disclosure Contract included within the competition documents. Same has been provided under Appendix I.

Scope

Phase One October 2022 - March 2023 (Setup, onboarding & training)

Setup & Training

• Ability to provide an overview of the end to end process, from approval through to draw down and collections;
• Support IUKL in developing new processes to manage loan administration;
• Setup of IUKL product and training of team to allow them to understand how to setup a new structure;
• Setup of integrations to existing IUKL systems, mainly Salesforce;
• Setup of direct debit functionality;
• Any migration of existing IUKL customers and ability to test migrations have been successful;
• Testing of a number of possible scenarios to ensure the system works as expected;
• Ability to track oversight of completion of conditions precedent and execution of finance documents for each loan.

Phase Two: April 2023 onward (in life support)

Portfolio Management

• Provider team available to IUKL team for any queries or adhoc requests within agreed SLA, system developments or changes to be managed within agreed SLAs;
• System able to manage multiple tranche drawdowns and the administration of grace / capital repayment holiday periods of up to 36m;
• Ability for the system to manage and collect the ongoing payments of interest, deferred interest principal, and fees, and notify of any late payments and report on exceptions;
• Direct Debit origination capabilities,
• The ability to amend or vary loans mid-term in line with a number of forbearance processes;
• Ability to produce customer communication notifications;
• Ability to forecast interest, deferred interest and capital repayments based on a forecast drawdown profile;
• Ability for borrowers to access their loan information and review forecast drawdowns, upcoming payments etc;
• Production of monthly material issues reports or as required;
• Reconciliation of interest, principal…