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Transform Client Communications With Cloud Telephony

Loan Origination System

Customer communication is the cornerstone of the Loan process. Loan companies initiate communication with the customers for various reasons – to schedule in-person meetings for sales, application submission, collateral evaluation & collection; to obtain clarifications on the loan application, request documents, conduct video KYC, collect outstanding payments and so on. While the customer contacts the lender with support queries during the lifetime of a loan.

Cloud telephony, also known as cloud calling, is a type of unified communications as a service (UCaaS) that offers voice communication services through a third-party host. UCaaS replaces the need for conventional enterprise telephone systems, such as private branch exchange (PBX), which tend to be relatively expensive and time-consuming to provision and maintain.

With Cloud telephony enabled Loan Management Systems, users will be able to place & receive calls directly from their computer or mobile device with an internet connection and free businesses from the burden of buying and storing stand-alone hardware, like PBX boxes and handsets.

Ozonetel Cloud telephony integration in Finezza LOS

Ozonetel is a cloud-based software communication solution that replaces your conventional business telephone setup with their VoIP services and widgets, for a better customer experience at a lower total cost for the business.

Finezza offers a comprehensive Loan Origination & Management System that’s flexible, agile, allowing for efficient management of different types of loans.

Ozonetel Cloud telephony connector is available out-of-the-box in Finezza LOS. With this connector, loan company users can open a loan application from the Finezza LOS web portal, and initiate phone calls with any of the parties associated with the application -, applicants, guarantors, back office staff and so on.

The call gets routed to the user’s mobile and once the user is connected, the other party, that is, the customer or company employee is added to the call. After the call, user can record the notes in the loan application screen itself for future reference.

Critical Steps to Ace Your Bank’s Cloud Transformation

Updates

Ever since banking has gone digital, security risks have drastically multiplied. As a result, banks need to opt for high-end & secure data storage units that reduce the chances of malicious attacks and enable quick recovery.

These factors (among others) have led many banks to opt for cloud computing and storage in recent years. As per Deloitte, chief information officers, C-suite executives, and board members are increasingly focused on cloud computing.

However, before your bank takes this monumental leap, you might want to know a bit more about cloud computing and how it can help your bank.

So, here we will discuss why cloud technology is the future of banking and the critical steps involved in acing your bank’s cloud transformation.

Why Is Cloud Computing Essential for Banks and Financial Institutions?

The banks of 2030 will be substantially different from the one we have now. Faced with shifting consumer expectations, rising technology, and alternative business models, banks must begin planning today to ensure they are ready for the future. The best part is, any bank can afford a cloud transformation. You just need a competent team that is always ready to learn and evolve. After all, cloud transformation is not a one-time goal or target to be achieved, it’s a way of operation. For banks, cloud computing helps in:

  • Scaling computing costs dynamically
  • Devising new talents and ways of operations
  • Drive business innovation
  • Strengthen IT security
  • Sync enterprises
  • Build robust operations

Key Steps to Effective Cloud Migration For Banks

Here is the ultimate blueprint for effective cloud migration for your bank:

1. Start with a Strategy 

Before you begin, you need to thoroughly vet  your current network and IT infrastructure to identify the areas you hope to improve. Once you understand your system’s application, limitations, and areas of improvement, you can devise a strategy that entails the goals you are planning to accomplish with this migration in measurable units.

2. Understand Which Applications Can be Transferred

Specific applications like standard applications and the ones devised using service-oriented frameworks can be transferred to the cloud. However, certain applications like the ones that are built with massive customisations cannot be shared. Therefore, during the audit you run on your IT environment, you will need to list out the applications that can be migrated so that you can plan your next step accordingly.

3. Hiring the Right Team

Your bank alone cannot handle the technical nitty-gritty of full-fledged cloud migration. You need a competent team with substantial experience in the IT domain to help you with the transfer. After all, along with enabling the transfer for applications, the dependent networks and apps will also be required to adapt to the new IT environment, which only an expert can help you accomplish.

4. Secure Your Data

You will undoubtedly have loads of sensitive data that you simply cannot afford to compromise in a bank. Hence, before you go through with the migration, you need to take sufficient precautions to prevent data corruption or loss. You should also keep a backup of all the data set to be transferred for the worst-case scenario. Choosing the right team will prove to be especially beneficial in this case since the experts would be able to facilitate secure transfers without the threat of data loss or leak.

5. Be Ready to Blend into the New Environment 

Once the migration is accomplished, you also need to plan to adapt your entire work culture to the new environment and maintain the cloud. This includes preparing a support team, introducing the system into your daily operation, assessing operation and maintenance expenses, and looking out for potential future crises.

Factors that Influence Cloud Transformation of your Bank 

Cloud transformation requires a little groundwork and a clear blueprint to operate without friction. Therefore, when it comes to transforming the business model with cloud computing, four significant factors come into play:

1. Aligning Cloud Transformation to Your Business Model 

Cloud transformation is indeed a huge change. Hence, it’s essential to ensure that every unit and department are on the same page before you begin. It’s also crucial to identify the potential obstacles beforehand to design a plan to mitigate or bypass the hurdles.

2. Ability to Adapt

While your IT department will be the backbone of cloud transformation, every employee would require basic technical skills to adapt to the new environment. Your employees would also need to have a mindset to adapt, learn and evolve. As the digital world progresses, each industry and its organisation will undergo substantial remodelling and evolution.

3. Assisting Your Employees Throughout the Transformation

Any organisation’s major environmental or operational change needs to be gradually imbibed and introduced to the employees to facilitate a smooth transition to retain productivity.

The wise thing to do here is to offer sufficient training to your bank employees and prepare them for the changes that are about to come. Banks cannot afford to put their services on hold indefinitely just to train their employees. Hence, the cloud transformation has to be very gradual.

4. Adoption and Familiarisation 

Banks must fortify the new work environment with new policies, strategies, and support frameworks from your bank’s end.

This includes offering round-the-clock support in case the employees run into a new problem. You can also accelerate the transformation by helping them see their growth through this.

Is Cloud Transformation Necessary For Your Bank?

Cloud transformation is the key break free from traditional and outdated tools that are holding back your bank’s true potential. It enables banks to modernise their operation for higher reliability, higher security, better service, and easy functioning at a reduced cost.

It’s no more about if a bank needs cloud transformation or not. Banks in India have already started adapting to the new way of life. Your bank needs a more modernised approach to banking that cloud banking offers to keep up with the competition.

Wrapping Up

One of the crucial components of cloud transformation is having someone to help you integrate and upgrade your existing IT infrastructure. At Finezza, our specialists understand what banks and financial institutions need to boost their services. We offer a customised, AI-powered lending lifecycle management platform to take your bank to the next level. You are just one click away from preparing your bank to be future-ready.

8 Benefits of Cloud-based Loan Origination and Loan Management System

Loan Origination System

In today’s commercial lending market, cloud-based solutions are increasingly serving loan origination and loan management requirements, shifting from manual operations to cloud automation built on the premise of easy access, scalability, and speed.

As financiers signal their increased appetite for consumer lending, it is important to speed up digitisation and cater to the newer generation of businesses through the cloud. This article will explore cloud technology and its advantages for lenders and businesses alike.

Benefits of Cloud-based Technology in Digital Lending

The traditional manual loan creation and management process is cumbersome for the financiers, borrowers, and banks. Here are some of the issues encountered during the legacy lending practices:

  • Lack of standardisation
  • Confusion due to underwriting and workflow needs
  • Tedious process of customer data verification
  • Delay in manual selection process due to human errors
  • Security and compliance issues

Renovating the finance industry is the need of the hour and cloud technology is a key enabler, assisting in better management of lending processes to meet business demands. The cloud gives financial enterprises of all sizes a reliable, secure, and cost-effective way to bring its advantages to operations. Here are some benefits of choosing cloud technology for your lending business:

1. Data Integrity and Security

Digital migration of lending businesses calls for better data storage, achievable through cloud computing. Remote storage of documents is secure because of an encrypted centralised server system that protects sensitive information like income records and tax identification numbers.

Financiers with a reputable cloud provider can minimise security risks by conducting detailed security audits, implementing multi-factor authentication, and IP lists that are accessible to authorised users only.

A major component of cloud data storage is data integrity — preventing unauthorised data breaches. Many cloud solutions notify admins of any mismatch by comparing the current state of data to the last good state.

2. Better User Experience 

Today’s customers demand superior service, be it loan processing or timely response to their queries. With an automated cloud-based loan origination software (LOS), customers avail the following advantages:

  • Elimination of unwanted delays
  • Less human errors and redundancies
  • Positive response time

With improved mobile technology, customers can submit loan applications using their smartphones, which can be verified by a cloud-based LOS.

And as for lenders, the customer relationship will forge beyond loan disbursement with the dynamic features of cloud technology.

3. Easy Availability and Collaboration

A cloud-based user interface makes it easy for big organisations and lenders to get easier access to customer information from anywhere. This can help with capturing and accessing consumer data in a centralised location and keep track of loan origination progress.

In a challenging mobile economy, a good cloud-based loan system with dedicated communication channels brings out a singular view for the loan department. Granting permission via easy cloud access becomes hassle-free without waiting for unnecessary approvals. Since a lot of data is just a click away, the whole process of loan origination and management is streamlined to meet business efficiencies.

Other than this, an open-source cloud-based LOS makes collaborations easy without any face-to-face interactions. With minimal or no training, underwriters can easily work on cloud.

4. Backup and Recovery 

IT downtime can cost a lot of money, leading to interrupted customer experience and delays.

Using cloud-based solutions can help minimise the risk of downtime and enhance productivity, agility, and efficiency. Such a LOS can implement automated rules with advanced-reliability measures, all in a paperless procedure and sans human intervention. Further, most of the cloud providers come with backup and recovery plans to back up data even in case of unpredictable scenarios like natural disasters or ransomware attacks. With prudent planning and customisation, financiers can take care of backup and recovery jobs of any complexity using cloud.

5. Scalability 

Scalability is one of the compelling reasons for the lending business development. In conjunction with security, transparency, and cost-effectiveness, financial institutions will have the ability to add features to the cloud platform. This can help meet loan volume needs without any significant investment or additional IT resources.

Cloud technology also gets rid of disaster recovery, upgrades, infrastructure maintenance, and unnecessary backups. This minimises the reliance on IT support and spending. In short, cloud makes the LOS scalable by focusing on building better customer experience, innovation, and productivity.

6. Less Implementation Time 

Cloud technology has drastically improved computing demand peaks and reduced downtimes.

With the right cloud-based loan origination and management system, businesses can achieve faster loan approval rates at different stages of the loan servicing cycle. Within a month, cloud-based lending platforms can run a new software with increased convenience, simplicity, and consistency.

7. Easier, Safer Documentation Management

With an increasing consumer base, documentation management for loan processing can become a hassle. Handling thousands of application forms, customer documentation, correspondence, and contracts manually is not just error-prone, labour- and time-consuming, it is unsustainable as well.

A cloud-based loan origination system can help manage consumer documents systematically. Some benefits include:

  • Easy storage of document templates
  • Automatic pre-filling of consumer information
  • Easy generation of client summary, loan analysis, and credit memo

8. Better Regulatory Compliance 

The number of regulations affecting the finance industry and the sheer volume of consumer data and money associated is a key concern for financiers. With cloud-based solutions, regulatory compliance becomes easy and time-efficient across all stages of the lending pipeline. Cloud builds an ideal environment for enabling compliance by making sure real-time data classification, logging, storage, regulatory reporting, maintenance, redundancies are achieved.

It also helps identify and manage risk gaps beforehand and make a course correction to the regulator’s expectations. This can assure lenders that all data entered is error free and can be extracted efficiently on demand. In addition, companies stay immune to compliance penalties.

Conclusion

Financial institutions and lenders are now migrating to cloud technology to access cloud-ready networks for their business needs. Used wisely, it can control costs in an efficient way, reduce disruptions, and give quick return on investment, all in a virtual environment. Last year, the public cloud hit $1 trillion enabling institutions more flexibility than ever.

Finezza equips you with all the tools — new competitive loan products, faster disbursal, better credit analysis and a lot more with cloud computation. Give us a call to scale your lending operations.

 

How Cloud Technology Can Future-proof Digital Payments

Updates

The days when digital payments were used only for online shopping are gone. In the last few years, there has been a steady increase in digital payments even in brick and mortar shops and pavement shops. Digital payment is becoming a new norm even for common money transfers between two parties.

With the restrictions in mobility imposed by the pandemic in the last year, brick and mortar businesses have taken a big hit in customer footfall. This has also indirectly reduced a lot of cash transactions that typically happen in the shops and has directly helped in the increase of digital payments and transfers.

The availability of touch-free QR code payment scanners, literally in every corner shop has directly helped in increasing the volume and turnover of digital payments.

As per the RBI report, dated August 25, 2020, the volume of digital payments and transfers grew by 44% to 3,43,455 Lakhs in 2019-20. This tells the speed at which the digital payment industry is growing.

Earlier, only financial institutions that include banks and NBFCs invested in digital payment infrastructure that was typically integrated with their online banking software and their core banking software. In the last few years, there is a clear surge in the non-banking payment providers like GPay, Paytm, Phonepe, Apple Pay, Samsung Pay, etc. in India alone. With so many new players in the market, there is an exponential increase in digital payments. With this, the number of frauds and failures has also increased substantially.

This phenomenon has forced the fintechs that provide digital payment platforms to look for innovative and futuristic ways to scale up their infrastructure to meet the ever-increasing demand. This is where cloud technology plays a game-changer.

Cloud Technology Benefits in Digital Payments Ecosystem

Seemingly almost every industry that relies on computer technology has adopted to cloud to different degrees. The digital payment industry is no exception. Now cloud-based e-commerce applications provide the potential to scale up services and customer experience as well. This has directly increased the number of digital payments.

Below are the key driving factors that enable cloud technology to future proof digital payments industry.

1. Scale-up on the fly:

Cloud technology gives the horsepower to scale up the infrastructure dynamically. Digital payment systems typically have a cluster of servers in the cloud behind load balancers. The load balancers take care of diverting the traffic to the servers that have enough bandwidth to serve the request. Also, cloud service providers can add new servers on the fly to the existing infrastructure to meet the increasing demand from any application.

2. Reach the destination faster:

Traditional online payment and transfer systems are notoriously slow, mainly due to an intermediary system called a correspondence bank, which requires a direct link between the banks in the sending and receiving countries. Since all the banks in the world cannot have a direct link with each other, most of the banks depend on correspondence banks for international transfers.

As a result, it makes the money transfer trail longer. With the adoption of cloud technology by the global payments network SWIFT, the correspondence banking model is fading away. This also removes the need for the Financial Institutes that have adopted SWIFT to go away with their onsite payment technologies. This trend only augments the prominence of cloud-based digital payment providers.

3. In-Built Security:

Cloud technology providers like AWS, Microsoft Azure, Google Cloud, IBM Cloud, VMware, etc., have their inbuilt security services. This makes the cloud infrastructure a virtual digital fortress. These service providers also keep upgrading their security systems to keep up with the increasing vulnerabilities. This helps the Financial Institutions and Digital Payment providers to focus only on their core functional needs and leave the security aspects to the experts.

4. Sophisticated Monitoring and Alerting

The cloud service providers used by the digital payment systems have their own inbuilt, sophisticated monitoring systems, that keep a tab on the payment system usage constantly and take any preventive or corrective action as needed. For instance, as soon as the monitoring tool senses that the CPU utilisation has touched 70%, it prompts the cloud system to add more CPUs on the fly. This way a major downtime is averted.

5. Interesting Dashboards and Reports:

For any digital payment system, statistical analysis of their performance in many dimensions is vital for their improvement.

Typically, statistics that represent the functional aspect of the digital payment system like, volume of transactions, net value, success rate, geography wise direction, etc, are developed as reports by the digital payment providers themselves.

In addition to these functional reports, cloud technology provides a lot of inbuilt dashboards and reports from a hardware perspective. This helps the FIs assess how strong their digital payments infrastructure is and take any preventive or corrective action.

The payment as a Service Model:

With the digital payment services products built-in cloud technology, it is easy to expose these as services to banks and nonbanks. This payment as a service model works well for either party since the cloud technology has a lot of advantages like:

  • Shorter time to market
  • On-demand scale up and scale down of the infrastructure
  • Pay per usage rather than fixed pay
  • Enhanced security
  • Provide the best in class payment services per the industry need

Financial Institutions (FIs) that have outsourced their payment systems to off-site third-party payment systems that reside in the cloud can save a lot in maintaining and keeping the payment systems up to date. This frees up a major bandwidth for the FIs and enables them to focus on their core business rather than maintaining the digital payment systems. So from the banks’ point of view, there is a single point of entry to access the payment system.

The idea of Banks and NBFCs managing the hardware and the environment of their banking software on-premises is steadily fading away. With the cloud, providing endless scope for scaling up with top-notch security and cost benefits, in the years to come, having the digital payments systems on the cloud will be the new norm. With cloud technology evolving at a rocket speed to match the demands of the Fintechs’ needs, the future is exciting for the digital payment systems that reside on the cloud.

Finezza is a loan management system that can optimise your lending process from start to finish and enable an efficient digital payment system for the collection of debt. With a secured cloud platform the all-in-one solution empowers financial institutions to leverage modern cloud technology and make smarter decisions to manage and monitor loans.

Contact us today to know more about our services and how we can help your business grow.

How Can Cloud Technology Transform Your NBFC?

Loan Origination System

Intense competition in the lending markets demands that all lenders streamline their processes and routines to service the growing demand for credit. Thus, financial lending companies like NBFCs and MFIs need to leverage time-saving technologies to optimise their operations.

For example, manual processes of legacy loan management systems often fail to match the massive amount of data processing that needs to be done, given the growing demand for loans. Further, manual processes are executed at a staggering speed, with limited scope for scalability and mounting costs. In such cases, automation is the perfect solution to streamline the lending process on the whole.

Modern, foresighted lenders are looking on a lookout for advanced, agile, yet cost-efficient lending solutions.

How Can Cloud Technology Transform Your NBFC?

Cloud computing has transformed the process of software development, delivery, consumption, and support. As a technology, it is fast revolutionising how financial lending companies conduct business with the numerous perks that it offers. More importantly, it can benefit both lenders as well as borrowers.

Cloud technology allows lenders to operate at a comparatively low cost for high volume, providing cost-effective scalability to businesses. Further, financial lending businesses welcome the prospects freeing themselves from the hassles of infrastructure maintenance, upgrades, backups, and disaster recovery. This leaves them to focus on their business innovation goals and build great customer experiences when they leverage cloud-based solutions.

Cloud computing in lending management can make it easier for lenders to connect with their customers and cater to business needs in a streamlined fashion within a limited budget.

Here we explain how cloud technology can transform your NBFC:

1. NBFCs can Slash Capital Expense with Cloud Technology-Based Solutions

Escalated capital expenses often plague the profitability of NBFCs that depend on manual processes and legacy systems. These expenses may include the cost of the server, storage hardware, physical space, and software licenses and cost heavily to lending businesses. Additionally, NBFCs may also incur IT expenses like equipment for disaster recovery, failover, and redundancy. Another big chunk of capital expenses constitutes the cost of licensed security software that are used to protect against increasing data breach threats.

Using a cloud-based loan management system, NBFCs can omit the outlandish expenses involved in selecting, procuring, and installing hardware components. Cloud-based loan management software subscriptions substantially slash down the cost for both hardware and software. Intelligently leveraging economies of scale, cloud-based loan management systems acquire, facilitate, and manage the equipment as well as software infrastructure in a cost-efficient manner as compared to on-premise solutions for loan management.

2. NBFCs can Significantly Lower their Operating Costs with Cloud Technology-based Solutions.

NBFCs that leverage legacy lending management solutions always end up paying for IT hardware and infrastructural cost as an ongoing basis. Operational costs for NBFCs that rely on legacy systems may include electricity, installation costs, maintenance, and updating costs for both hardware and software components.

Cloud-based loan management systems eliminate the cost involved in maintaining a large workforce to oversee IT operations. It leaves staff to use their skills and resources for activities of prime importance like customer acquisition and sales.

3. NBFCs can Streamline Operations with a Cloud-based Loan Management System.

NBFCs that use Cloud-based loan processing systems accomplish tasks in a streamlined manner as compared to manual loan processing systems. It becomes accessible to onboard customers with cloud-based lending management software. Even lenders do not need to download, install, and test them on local servers. They can conveniently dedicate hardware and software resources in the cloud, with solutions that are easy to deploy and configure. Lending companies use fully-configured cloud-based software to benefit from their instant availability and security. Especially in the case of geographically distributed remote teams, Cloud-based systems are a plus. These systems can ensure the instantaneous nature of functional improvements that benefit lending businesses.

4. NBFCs Enjoy Desirable Scalability with Cloud-based Loan Management System

As a business expands, it requires additional hardware, physical space, and electrical and cooling ware to support its growth. There are times when the company needs an upgrade to support growth. Cloud technology can aid NBFCs in scaling. It can fortify NBFCs with capabilities to add hardware and software resources to accommodate the increased demand for expansion of business operations. Further, NBFCs can easily and quickly deploy resources as and when needed. They can increase the capacity to meet a sudden rise in demand in case of an increase in the number of loan applications.

5. NBFCs Count on Reliability of Cloud-based Systems

There are times when NBFCs face occasional high demand and are met by crash downs of their management solutions. These crash downs can result from power failure, hardware failure, overload, or multiple crippling factors, etc. Using cloud services allows NBFCs to store data and other resources on a centralised server. The data is available 24*7 when it comes to cloud systems. The reliability is a result of storage hardware, backup generators, redundant hardware, failover clusters, and dedicated communication of the cloud servers.

6. NBFCs Benefit from the Data Services of Cloud-based Management System

A cloud-based loan management software can help NBFCs work with better quality lending decisions for all the loan applications that come their way. NBFCs can even enhance their underwriting productivity with cloud-based data sources and services. Most cloud-based lending management systems collectively use data sources like credit data, alternative data, identity data, and other risk evaluation resources to access applications. Loan underwriters at NBFCs then take the accurate applicant profile report at present to determine the creditworthiness of applicants who have no credit history.

Conclusion

NBFCs can improve their applicant onboarding processes, loan origination, and even disbursal with cloud technology. Cloud backed solutions help NBFCs cater to a broader range of clients, lowering processing costs, and improving productivity and profitability. They even help create a better experience for the customers by making the process simple and thus helps NBFCs achieve their goals.

Finezza’s NBFC software is a robust cloud-based loan management system that flawlessly integrates with the existing lending ecosystems. It is a highly customisable system that syncs with credit data sources and services to help NBFCs make better quality decisions and reduce the overall application processing costs associated with an increase in volumes.

Why You Need A Cloud-based Loan Management System?

Loan Origination System

Highly competitive lending markets need players to streamline processes and routines to service the high demands they are facing. There is a dire need to leverage time-saving technology for optimal efficiency whenever possible. When it comes to loan management, manual processes fail to handle the massive amount of data they come across on an everyday basis. Old legacy systems function at a staggering speed, limited scalability, and without cost reduction etc. Automation is the best remedy to streamline the lending process on the whole. Lenders are looking for modern, agile, fast and yet cost-efficient loan management systems for their business.

Cloud computing has gradually changed the way software is developed, delivered, consumed, and supported. Because of its various perks, cloud technologies are fast revamping the way financial lending markets function, and benefits both borrowers and lenders. With cloud technology lenders can operate at a low cost but high volume, providing much-needed scalability to businesses. Financial businesses love to be free from the hassles of infrastructure maintenance, upgrades, backups, and worrying about disaster recovery. They direct all their focus on business innovation and building great customer experiences when they leverage cloud-based solutions.

Benefits of Using a Cloud-based Loan Management System

Cloud computing in lending management can transform the financial services business by revolutionizing their business models. Thanks to cloud systems, lending organisations find it easier to connect with their customers and cater to business needs in a shorter time within a limited budget. Here we illustrate some of the benefits of cloud-based lending management systems:

Lenders Can Cut Down on their Capital Expense with Cloud-based Loan Management System

Escalated capital expenses often mar financial lending institutions that depend on legacy systems. These include the cost of the server, storage hardware, physical space, and software licenses. Additionally, thriving lending businesses incur IT expenses that contain equipment for disaster recovery, failover, and redundancy. The capital expenses also include the cost of licensed security software they use to protect against increasing data breach threats.

A cloud-based loan management system, on the other hand, omits the expense involved in selecting, procuring, and installing hardware. Subscribing to a cloud-based loan management software slashes down the cost for both hardware and software. Because they leverage economies of scale, cloud-based loan management systems acquire, provide, and manage the equipment as well as software infrastructure far more cost-efficiently than on-premise solutions for loan management.

Lenders can Slash their Operating Costs with Cloud-based Loan Management System.

Traditional lenders always pay IT hardware and infrastructural cost an ongoing operational expense. These include the cost of electricity, installation costs, maintenance, and updation cost of both hardware and software.

Using cloud-based loan management systems, on the other hand, eliminates the cost of maintaining a large workforce to manage IT operations. The automation frees up the staff to use their skills and resources for activities of prime importance.

Lenders can Streamline Operations with Fast Implementation of Cloud-based Loan Management System.

Cloud-based loan processing systems accomplish tasks at a much faster rate when compared to manual loan processing systems. Onboarding of cloud-based lending management software is easy and highly streamlined as well. Cloud-based systems omit the need to download software, install and test them on local servers for cloud-based management systems. Vendors dedicate hardware and software resources in the cloud.

Further, they configure the software to meet the specific requirements of the lending process at the business. While legacy systems take months or even a year to implement and configure, the cloud-based loan software is easy to configure and deploy. A fully-configured cloud-based software is available instantly and securely to a lending business via a web browser. Cloud-based systems are especially advantageous for companies that employ people working remotely or have a geographically distributed team. With cloud-based software, companies can fix any reported bugs quickly and even make software updates or add feature enhancements to improve process efficiency, almost flawlessly. Businesses benefit from the instantaneous nature of functional improvements that cloud-based systems offer.

Lenders can Scale-Up Demand with Cloud-based Loan Management System.

Every time a business expands, there is a need for additional hardware, physical space and electrical and cooling ware to support the growth. Sometimes, some components need an upgrade with time. Cloud technology businesses to scale and grow as the business grows. Cloud loan management systems can easily add hardware and software resources to accommodate the increased demand for loan evaluation or expansion into a new region. For seasonal lending businesses, cloud technology allows one to allocate resources as and when needed, quickly. When companies face high-volume loan applications, they can add the capacity to meet a sudden rise in demand. Similarly, if loan application volumes dip, businesses find it easier to scale back down with cloud tech. Simply put, lending businesses only pay for the cloud resources they use at any given time.

Lenders Benefit from the Reliability of Cloud-based Loan Management System

Many traditional lending firms face occasion high demand only to find their loan management system crash down. The crash may be due to power failure, hardware failure, overload, or multiple crippling factors that impede the lending business.

Powerful data centres back to cloud services. The data and other resources are stored on a centralized server and are available 24*7 when it comes to cloud systems. The data centres come with server and storage hardware, backup generators, redundant hardware, failover clusters, and dedicated communication links to ensure that the loan management software hosted on their platform offers reliable options to businesses and are available when needed.

Lenders Benefit from the Data Sources and Services of Cloud-based Loan Management System

With cloud-based loan management software, lending businesses enable better quality lending decisions for all the applications they receive. Further, they enhance their underwriting productivity thanks to cloud-based data sources and services. These lending management systems collectively use credit data, alternative data, identity data and even risk evaluation resources to access applications and present results in a standard format automatically. Loan underwriters benefit from a detailed and accurate applicant profile report that helps them determine the creditworthiness of applicants who have no credit history but are qualified borrowers.

Conclusion

Right from applicant onboarding, origination to evolution, cloud technology is empowering lending businesses to cater to a broader range of clients, simplifying applications, lowering processing costs, and improving productivity and profitability. Automation of loan processing provides a better experience for the customers by making the process simple and helps businesses achieve their goals. Moreover, most cloud-based lending software can be customized based on the financial organization’s needs. These systems simplify the loan origination process and keep data secure.

Finezza is a cloud-based loan management system that is easily integrable with existing lending ecosystems. The highly customizable system works with credit data sources and services to help lending businesses make better quality decisions and reduce the overall application processing costs.