When selecting loan servicing software for your lending company, dealership, or retail store, it’s essential to evaluate its features and assess its performance in areas like automation, reporting, security, and usability.
Your software should feature advanced automation for faster processing, error reduction, and cost savings; comprehensive reporting to support decision-making, compliance, and performance tracking; robust data security measures such as encryption, multi-factor authentication, and intrusion detection to protect sensitive information; and an easy-to-use interface with intuitive navigation, customizable dashboards, and built-in support tools to enhance user experience. These features ensure operational efficiency, regulatory compliance, data protection, and improved customer service, among other benefits.
Loan Servicing Features to Pay Attention To
When choosing the right loan servicing software to use throughout your lending company, dealership, or store, there are a few features that your lending software should absolutely include, such as:
Advanced Automation
Automation is the name of the game when it comes to the best loan origination software (LOS) and servicing software for your lending company, retail store, or dealership. An LOS/loan servicing software built around automation reduces the need for manual input, allowing your team to originate and manage loans faster and more efficiently.
Just some of the benefits of automation in lending software include:
Faster Processing
Automation makes nearly every process involved in loan servicing more efficient, including invoicing, payment processing, account updating, etc.
24/7 Operation
Whether a transaction or account update is made outside of business hours, automated software will reflect the activity in real time, no matter what time.
Reduced Room for Errors
Human error is a common issue with manually processed loans. Automation reduces the opportunity for human errors to occur, as the system significantly reduces the need for data entry, validates manually entered data, takes care of calculations, creates reports, and more.
Better Compliance
Human error can lead to compliance issues and risk management issues, which can be a massive problem for a lending company, store, or dealership. Strict compliance in the lending industry is vital, and automated lending software significantly reduces your risk of slipping up and falling out of compliance with current rules, regulations, and standards.
More Savings
By reducing the need for team members to complete repetitive manual tasks, businesses can reduce staffing and the administrative overhead it takes to complete tasks manually. Plus, team members can focus their attention on other areas to help grow the business.
There are so many additional benefits that automated loan servicing software brings to the lending process, including:
- API integration with other systems, like accounting software, CRMs, payment processors, and more.
- Advanced reporting with current data and insights into each loan portfolio.
- Better customer service with solutions like self-service options, faster decisioning, and effective methods of communication.
Reporting
Loan origination and management require a variety of reporting options for borrowers, loan officers, underwriters, compliance teams, and more. When evaluating lending service software for your company, you want to make sure it produces the reporting you need to serve your customers and satisfy compliance and risk management concerns.
Just some of the main reporting categories a quality LOS can satisfy include:
- Applications: This can include application status reports, pipeline reports, and lead conversion reports.
- Borrowers: This can include credit score analyses, risk grading, and fraud detection reports.
- Decisioning: This can include decision metrics reporting, decision engine reports, reports in cases of exceptions or special conditions, etc.
- Compliance: This can include anti-money laundering (AML) reports, know-your-customer (KYC) reports, detailed activity logs, and more.
- Performance: This can include revenue reports, borrower behavior reports, KPI tracking, and others.
Data Security
Protecting all the data involved in loan origination and management is absolutely vital to the success of your company and your lending processes. Your borrowers’ sensitive information cannot be compromised, and neither can the data related to your business. High-quality loan servicing software should feature a strong combination of data protection measures, including:
- Data encryption
- User authentication, ideally multi-factor authentication
- Role-based access control
- Advanced intrusion detection and prevention systems
- Strong API security
- Secure cloud hosting
- Firewall protection
- Data masking
- Routine system audits and updates
- Disaster recovery plans
- Employee security training
Among others.
Simple or Easy-to-Use Interface
A well-secured, highly automated LOS/loan servicing software with advanced reporting capabilities can still fall flat if it’s challenging to use or understand.
When evaluating your lending service options, you want something that your team can easily and reliably operate every day.
Signs of an easy-to-use LOS interface include:
- Intuitive navigation with a digital menu, breadcrumb navigation, and easy-to-access shortcuts.
- Clean, simplified design without much clutter on the screen or inconsistency among the design elements (i.e., the buttons, toggles, fonts, colors, etc.).
- Customizable dashboards to tailor the look according to the team member using the platform (i.e., the loan officer’s dashboard can be different from the underwriter’s dashboard to accommodate each team member’s needs).
- Help and support features for team members to access when they need help utilizing a feature of the LOS (i.e., a “Help” button, in-app tutorials, clear links to an FAQ page, tip popups, etc.).
Still curious about what to look for in loan servicing software? Talk to the LOS experts at Allied Business Systems today!
At ABS, we know consumer finance software and offer lenders, retailers, and dealers like you the loan origination solutions you’ve been looking for. Our LOS, absVision, is a cutting-edge lending software that is automated, highly secure, easy to use, and compliance-friendly, among many other benefits.
Experience what it’s like to streamline the lending process with a simplified but highly robust lending software like absVision. Speak with an ABS expert today! 800-727-7534
In addition to lending software, we also offer ABS customers the opportunity to enhance their processes with an online loan application site! Designed and developed by M&R Web Development Agency, a long-time partner of ABS, our application website offers customized, scalable solutions for lenders of all sizes, whether they have one location or multiple branches or locations across their service area.
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