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If you’re in consumer or any other kind of lending, you understand how competitive the lending market can be. You also know how important efficiency, speed, and accuracy are to both loan origination and loan management for every loan you establish and every borrower you serve.

In today’s lending landscape, automation is the name of the game. When loan management is automated, it reduces the amount of time-consuming manual processes that are required to maintain the loan, and it replaces them with simplified processes that are designed for speed and efficiency. Easy-to-use but robust loan management software significantly benefits your team and your borrowers, allows for better profits, and improves practically every step of the lending process, from origination to final payment.

Let’s examine the benefits of choosing high-quality, automated loan management software to better understand how better lending software can improve your lending processes.

Benefit #1: Accelerated and Simplified Processes

Loan origination requires the collection and evaluation of lots of data, documents, and more for the underwriting process. It’s essential to gather the correct info and examine it all thoroughly in order to make informed decisions, originate loans, and transition from origination to the management phase.

Manual data entry and document evaluation are tedious, time-consuming, and filled with room for error. Plus, manually evaluating whether a loan should be approved or denied could take a while. However, automated loan management software helps ensure that these steps are simplified and accelerated, allowing the underwriting and decisioning process to be completed in minutes rather than days or weeks.

When it comes to managing the loan, automation keeps your employees from having to complete any manual tasks throughout the life of the loan and allows team members to focus on more important or more profitable responsibilities.

Benefit #2: Increased Profits

If your team is busy manually collecting data, entering information, examining documents, and processing payments, they can only originate and manage a limited number of loans at a time. Your options are to hire more team members to keep up with demand, overwhelm your current employees, or opt for an LOS package with management capabilities that will free your members to originate and manage a higher volume of loans.

When the origination and management processes are automated, workflows are improved to allow for more loan processing on a faster and more efficient timeline, which directly increases profits for your company and positively impacts your bottom line.

Benefit #3: Better Borrower Experiences

Patience used to be a virtue, but the user/buyer/borrower experience today prioritizes simplicity and instant gratification. We are all more accustomed to quicker, more streamlined processes nearly everywhere, even when getting a loan from a company like yours. Your borrowers expect efficiency, and automated loan management software allows you to deliver and ultimately achieve that customer satisfaction.

Automation allows for a better borrower experience. Some of the biggest pain points for borrowers during the lending process include:

  • Delayed communication
  • Miscommunication
  • Form issues
  • Confusion with terms and conditions
  • Too long of a decision process

(You can read more about these frustrations in our article, Common Pain Points for Borrowers.)

When your LOS is designed to serve not only your team but your borrowers as well, you are set up to earn customer satisfaction and likely gain referrals or returning borrowers.

Benefit #4:  Compliance Adherence

You know that the lending market is extremely regulated, and compliance is more than an important focus—it’s an essential requirement. Complying with state and federal regulations can be a difficult, complex task that should always remain at the forefront of your daily operations. With ever-evolving regulations at play, you need the tools that will help you stay on track with your mission to remain compliant and out of hot water.

The proper LOS can allow you to minimize any regulation violations through features that are flexible and customizable to your origination and management needs or requirements.

Are you ready to experience all the benefits of robust, customizable, flexible loan origination and management software? Then you’re ready for absVision from Allied Business Systems.

absVision brings major benefits to lenders everywhere, delivering lending solutions that focus on improving loan origination and management, lender and borrower experiences, and your bottom line.

Learn about all the ways absVision can benefit you and your team by speaking with an ABS expert today: 800-727-7534

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