People want simplicity; it’s in our nature. The same holds when it comes to borrowing and purchasing—the easier it is to borrow or purchase from a company, the more satisfied the customer will be.
But, sometimes, certain factors get in the way of a process and cause the user experience to suffer. In lending, specifically, a few pain points can spring up and interfere with the borrower, causing frustration or, worse, process abandonment.
A few of these pain points include:
Delayed Communication or Miscommunication
Clear communication between the lending company and their customer is essential to ensure the borrower is informed and knowledgeable about the loan and the terms of the loan they plan to pursue. While some companies only provide the loan, many lenders include additional benefits, offerings, and other incentives for those who borrow from them. Competition between lending companies can be stiff, so additional loan features can encourage borrowers to choose one company over another.
But whether you offer incentives or not, lenders need to explain the terms of their offers so the customer can fully understand what they are signing up to receive. From simple to complex loans, communication is a necessary part of the lending process.
When communication is delayed or the messaging is too difficult for the borrower to understand, they can become easily frustrated. And with frustration comes the desire to abandon the process and look for a more straightforward solution elsewhere. Many other companies and institutions provide similar loans to customers for the assets and items they want to purchase. A communication problem could factor into whether the customer chooses to borrow from your company or another.
Paperwork or Form Complications
Tied into communication issues is confusion over paperwork—what paperwork does the customer need to provide, and how can they submit it? What documents are they potentially missing from their application? Along with confusion, there could be delays in distributing the documents to the proper parties.
Without the proper paperwork, the application process cannot move forward. Without clear communication or effective systems to submit and distribute the documents, the borrower could feel as if they are left in limbo to either figure out what to do on their own or seek out a company with a more user-friendly application.
And while documents are a crucial component of the loan application, so is correctly filling out the required backend forms. This is usually performed by loan officers who rely on the customer-submitted paperwork to complete these forms. If entered manually, human error is always possible, leading to application delays and further frustration on the customer’s end.
Confusing Terms and Conditions
It’s true that the confusion of the terms and conditions is not necessarily an issue on the lender’s part—the legal information provided in all terms and conditions is thorough and typically difficult to comb through. It takes time to read and process each part of the document. However, loan officers and other company representatives should be available to help clarify the terms for curious customers. If there are delays in communication or difficulty on the customer’s end as they try to reach out and speak with someone, as mentioned above, it can cause further frustration and become either another clear pain point for the customer to work through or a reason for them to abandon their application.
Prolonged Approval or Denial Processes
Without quality loan origination software or a process that allows you to streamline the necessary steps for approval and onboarding, the overall lending process could become too prolonged. Customers seeking loans for a purchase do not want to wait—and in some cases, they do not have time to wait. If there are extended periods of delay between steps or within steps, you could risk losing them to a faster-operating lending company or institution.
absVision Is the Problem-Solving, Pain-Reducing Loan Origination Software You Need!
absVision is a customizable, configurable loan origination and management software from Allied Business Systems that supports both loan officers and borrowers at every step. From streamlining the origination process to allowing for more accessible communication and ensuring proper data collection, absVision transforms your workflow so that you can better serve your team and your customers.
Highly robust but simple to use, absVision meets all your lending needs and is regularly updated to ensure you always get the most advanced version. With absVision, you can originate loans, track processes, accept payments, and easily integrate packages such as QuickBooks, Microsoft Dynamics, Intacct, and Sage.
absVision is available for institutions and companies that offer:
- Auto financing
- Consumer lending
- Real estate loans
- Retail installment
- Title loans
Ready to solve your loan officer’s pain points? Talk to Allied Business Systems about absVision today!
Discover all the ways absVision can serve your loan officers by speaking with an ABS expert today: 800-727-7534
Common Pain Points for Loan Officers