The verdict in three sentences
For a community lender with 30,000 customers in London, moving from a credit decision in 10 days to 48 hours requires loan origination software with scoring, an approval workflow and a core banking connector. The budget sits between 120,000 and 220,000 GBP in 2026, for a 5-month project. The gain shows in three numbers: more applications per loan officer, fewer defaults thanks to scoring and FCA-ready reporting produced without re-keying.
Where the 10 days go
In many community development finance institutions, the file moves between loan officer, branch lead, analyst and committee by email and shared drives. Each step waits for a signature or a missing document. The map below is typical of a mid-sized lender.
| Step | Current time (estimate) | Target with software | Lever |
|---|---|---|---|
| Document collection and interview | 3 days | 1 day | Online application, open banking statements |
| Entry and history check | 2 days | 15 minutes | Automatic read from core banking and credit file |
| Analysis and scoring | 2 days | 1 hour | Computed score, analyst on borderline cases |
| Team lead approval | 1 day | 4 hours | Notification and approval on phone |
| Credit committee | 2 days | 24 hours or delegation | Delegation thresholds by amount |
| Disbursement | Variable | Same day | Instruction sent to core banking via Faster Payments |
Loans under 5,000 GBP, often 70 % of applications, can be delegated to the team lead when the score is favourable. Only large files go to committee.
Scoring from your own history
A lender with 30,000 customers holds years of repayment history: its main asset. A simple, explainable points-based scorecard fits better than an opaque model, because analysts and the committee must be able to justify a decision to the regulator or the customer, in line with FCA affordability and Consumer Duty expectations.
| Scoring variable | Source | Indicative weight |
|---|---|---|
| Arrears on last 3 loans | Core banking | 30 % |
| Length of relationship | Core banking | 10 % |
| Savings to amount requested ratio | Core banking | 15 % |
| Affordability (income minus outgoings) | Open banking and interview | 25 % |
| Business sector and seasonality | Officer form | 10 % |
| Guarantees and co-signers | Officer form | 10 % |
The software also checks affordability rules and calculates the APR shown to the customer.
Budget and options in 2026
| Option | Upfront cost (estimate) | Recurring cost | Lead time | Watch point |
|---|---|---|---|---|
| Credit module of the existing core banking | 30,000 to 60,000 GBP | Annual vendor licence | 2 to 3 months | Rigid workflow, limited mobile |
| Custom origination software, scorecard | 120,000 to 160,000 GBP | 1,000 to 2,000 GBP/month | 5 months | History data must be cleaned |
| Custom + officer app + instant disbursement | 160,000 to 220,000 GBP | 2,000 GBP/month and up | 5 to 6 months | Payment provider agreements |
| Secure hosting and backups | Included | 300 to 900 GBP/month | 1 week | UK data residency and encryption |
At Kolonell, a complex application costs 7,000,000 to 15,000,000 FCFA and more (about 10,670 to 22,870 EUR and more); a loan origination project with scoring and a core banking connector sits at the top of that range or beyond depending on the number of integrations. Maintenance ranges from 35,000 to 120,000 FCFA a month.
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Mini case study
Oliver, operations director of a community lender with 30,000 customers in London, disburses 900 loans a month with 25 loan officers. Each officer handles 36 files a month. By cutting admin time, the lender targets 50 files per officer, or 1,250 loans a month with the same headcount. On an average loan of 4,000 GBP at 20 % APR over 10 months, interest earned is close to 330 GBP per loan: 350 extra loans generate about 115,000 GBP of interest a month. Even with a 5 % default rate on these new loans, a 180,000 GBP project pays back in 3 to 4 months.
FAQ
Does the software replace our core banking?
No, it plugs into it to read history and send disbursements. The connector usually represents 15 to 20 % of the budget, depending on whether the vendor offers an API or database access.
How do we stay compliant?
The software logs every decision, approval and override, and checks affordability rules. Regulatory reports come from the same data, without re-keying.
Can officers use it in the field?
Yes, the mobile app works offline and syncs when back online. A standard smartphone is enough.
How long to get a reliable scorecard?
With 3 years of history on 30,000 customers, a first scorecard is calibrated in 3 to 4 weeks. It is then reviewed every 6 months by comparing scores with actual repayments.
Let's scope your project. Share your loan volume, your core banking system and your delegation levels: we scope the work in releases, with an indicative budget and a 5-month timeline. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
