Akkuro | Composable Banking | Insights

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

Written by Jamie Burink | September 17, 2025

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.