Before the age of digital technology, the lending process required extensive paper trails and individual and team-wide diligence to ensure each loan was managed accurately from origination to final payment. Now, advanced loan origination and management software is available to automate the process, streamline and simplify workflows, and create a more convenient experience for both lenders and their customers.
But even with the advanced, technological lending solutions available today, some lenders still rely on manual lending, which results in slow, inefficient processes and leaves more room for human error to occur and cause significant issues.
If your lending company still carries out manual lending solutions for your borrowers, implementing loan management software can be a transformative change for your team and your customers. Especially in our ever-evolving digital age, people expect the benefits of automated processes, which include:
Benefit #1: Streamlining From Origination to the End of the Loan
The primary goal of lending software is to automate the process as much as possible. A major goal of automation is to streamline every phase of the lending process, which allows for more efficiency, shorter turnaround times, better accuracy, and more.
But what is it about loan management software that streamlines the lending process? The majority of it relates to the software’s ability to digitally centralize the required data and analyze it quickly and accurately. When data is collected in digital form and centralized via the lending software, lenders no longer have to sort through physical files or save physical data through a filing system that they have to manually sort through later. It’s all there together, easy to find and easy to review.
Centralized data can include the borrower’s application form, as well as required documentation or information needed for accurate underwriting and decisioning.
Centralizing data means streamlining the process because it allows for:
Faster Decisioning and Origination
Manually collecting and analyzing an applicant’s data means extending the time it takes to reach a decision and onboard a borrower. However, lending software that centralizes and analyzes data significantly reduces the time it would take to evaluate it manually, leading to streamlined decisioning and origination.
More Accurate Decisioning and Origination
Not only does manual data analysis take time, but there is also plenty of room for a mistake to be made somewhere along the line, leading to time-consuming corrections or costly issues if the error is not caught early. With advanced lending software that both centralizes the data and can analyze the data accurately, you’re able to move forward with loan origination and management quickly and confidently.
Better Efficiency Throughout Loan Management
Loan management means keeping up with payments, reports, prebilling statements, and more. Through centralized data and software-provided automation, you’ll benefit from a more efficient management process overall. Time is no longer wasted on manually creating reports and other documents; plus, loan management software allows you to automatically schedule electronic payments, process payments that arrive, and benefit from other efficient solutions.
Benefit #2: Customer Convenience
Today’s digital advancements have transformed the customer experience across industries. People have come to expect instant gratification—or at least faster gratification—when they interact with most businesses.
If your lending processes are still manual, your applicants and borrowers are likely forced to visit your office in person, interrupting daily schedules and creating a sense of inconvenience. Requiring in-office visits can ultimately drive them away from your company and steer them toward competing lenders that can offer more advanced application solutions.
Additionally, manual processes likely mean that your applicants must wait on your team for longer than they would like to for a decision, probably without updates from your team in the meantime. Customers don’t want to wait too long, especially when there is a lack of communication. They are likely to wonder if your team is actually reviewing their application.
When you rely on lending software that streamlines decisioning and helps improve communication, especially from a team that can also offer online application solutions for your company, you significantly improve your customer’s experience with your company.
With better customer service and convenience, you’re likely to benefit from:
- Increased number of borrowers
- Returning borrowers
- Borrower referrals
And more!
Benefit #3: More Business and Better Profits
As mentioned, manual lending takes a lot of time to complete—time that could be spent assisting even more borrowers or increasing profits further. Instead of your team spending days or weeks on a single borrower application, loan management software allows you to increase the number of applications and loans each team member can process or manage, creating the opportunity to grow your customer base and push business further. Quality lending software should be flexible to match your needs and advanced enough to scale up or down depending on your company’s current lending capabilities, number of borrowers, and other factors.
Loan management software can lead to better profitability by way of:
- Reducing operational costs – Instead of paying to complete manual, time-consuming, redundant, and repetitive tasks that slow down the decisioning or management process, you can provide your team with the software that allows each member to optimize their workflows.
- Reducing errors—Errors are natural, especially when tasks are performed manually. When a human error occurs, it can take profit-consuming time to correct, and it can also lead to some financial loss, whether small or significant. Software automation greatly reduces the possibility of errors, helping you save.
Ready to Experience the Game-Changing Benefits of Transitioning to Lending Services Using Reliable Loan Management Software? Talk to ABS About Transforming Your Workflows With absVision Today!
When it’s time to streamline your lending with automation solutions, turn to absVision by Allied Business Systems. absVision is robust, easy to use, and designed to handle all your loan origination and management needs, benefiting your team and your borrowers.
To learn how you can benefit from our comprehensive LOS, talk to an ABS expert today! 800-727-7534
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