Origination

Origination refers to the comprehensive, multi-step process involved when a consumer or borrower applies for a new loan or credit card. This process encompasses all the activities from the initial application submission to the final decision of approval or denial. It is a critical function within financial institutions, as it directly influences the risk and profitability associated with new accounts.

The origination process typically involves several key stages:

Origination is crucial for lenders as it helps them manage risk and ensure that loans and credit are extended to borrowers who are likely to repay. This process is supported by various technologies and systems that streamline the steps involved, improve decision accuracy, and enhance customer experience.