End-to-end loan servicing automation: disbursements, collections and arrears management


Managing loan disbursements and collections becomes increasingly complex as portfolios grow. Manual steps, fragmented systems and repetitive tasks drive up arrears risk, slow down recovery and increase costs.
Summary
- Manual disbursement and collections handling increases arrears risk and operational inefficiency.
- Loan collections automation reduces errors, strengthens compliance and improves repayment success rates.
- Automating the full loan lifecycle - from disbursement to repayment tracking - enhances portfolio performance and reduces credit risk.
End-to-end loan servicing automation allows lenders to control disbursements, collections and arrears management in one system - combining speed, accuracy and compliance with stronger portfolio oversight.
Manual loan disbursements and collections increase arrears risk
Once a loan is approved, financial institutions must disburse funds and manage ongoing repayments and interest collection. These tasks often require multiple manual steps such as verifying borrower details, ensuring regulatory compliance, matching payments and updating records across different systems.
As loan portfolios expand, the complexity of managing these tasks increases. Without automation, institutions face higher costs, delays and greater risk of errors, making it difficult to scale effectively.
Why automation is essential for loan collections
To manage larger portfolios, lenders need automated solutions for disbursements and collections that minimize manual intervention. Automation reduces operational risk, improves compliance, and ensures accurate, timely payments. Automated features, such as automated financial reporting, allow lenders to streamline processes, trigger payment reminders, and generate necessary reports without manual input.
These capabilities integrate seamlessly with other functions, contributing to a unified ecosystem for modern loan management.
Akkuro Lending: end-to-end loan servicing automation
- SEPA loan payments – The Loan Administration module supports SEPA (Single Euro Payments Area) to enable seamless and secure payments across Europe. Both SEPA credit transfers and direct debits are fully supported, making cross-border transactions simple and reliable.
- Straight-through processing for 99% of payments – With STP, the platform automates disbursements, payments and collections, significantly reducing manual intervention. This speeds up payment cycles, minimizes errors and enables institutions to scale loan operations efficiently as portfolio sizes grow.
- Efficient handling of voluntary payments – Voluntary payments that do not match existing obligations are intelligently reconciled using payment descriptions, IBAN numbers and other identifiers, reducing the need for manual reviews.
- Comprehensive life cycle management – The Loan Administration module supports full repayment scenarios, prepayments and interest adjustments. These processes can be automated via APIs or managed through the user interface, ensuring smooth operations across the entire loan life cycle.
- Automated financial bookings – All transactions are automatically recorded as financial bookings in the general ledger. This ensures accurate tracking from disbursement to repayment, with easy export to external accounting systems for reporting.
- Digital arrears and payment arrangement management – If a payment is missed, the system automatically sends reminders to improve collection rates. For borrowers in arrears, Loan Administration manages reviews and recovery processes, ensuring compliance while protecting portfolio performance. This automation improves repayment rates and reduces credit losses.
Scale loan portfolios with stronger risk control
With Akkuro's Lending Loan Administration, financial institutions can automate their disbursement and collection processes for greater speed, accuracy and compliance in one platform. This reduces credit risk, strengthens repayment success rates and improves portfolio oversight - enabling lenders to scale with confidence while protecting margins. By combining automation with smart integrations, lenders can achieve faster loan disbursement and seamless loan management with API integrations.
Contact us to explore how Akkuro Lending can automate your loan operations and support growth with confidence.

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