Are you struggling with a manual loan management process? Or are you unable to cope with disparate loan origination and management systems that offer a fragmented view of the process? Cut down all the paperwork and make your loan management process cost-effective with a singular loan management software that solves all your needs.
An automated and comprehensive loan management system adds tremendous business value to your institution and aids you to elevate your overall customer experience. With loan management software, you can deliver loans with quick turnaround time and make the overall experience worthwhile for your customers.
What You Need To Remember Before Choosing A Loan Management Software
When it comes to providing seamless customer experience, finding the best loan management software for your business needs is like buying a new suit: one size doesn’t fit all. The basic expectation is that the software should enhance your operational efficiency and be easy to use!
Here are some important factors you should consider when you invest in an effective loan management software:
1. Scalable Solution
It is of utmost importance to opt for a loan management system that grows as you grow and diversify your products and services. The software should be able to cater to all the lending needs of the companies ranging from consumer loan, commercial loan, asset financing and more.
A well-structured software system will account for a broad range of use cases and emerge as a true business value driver for the company.
2. Cloud Based vs On Premises Deployment
As a growing lending company, you might not have a dedicated IT department to develop and manage an advanced software solution. That’s where cloud-based solutions make your job easier and help you deploy a fully manageable software system with quick implementation.
What’s more, you can gain access to advanced features and functionality, enjoy regular maintenance, software upgrades along with prompt IT and customer support when you need it.
3. Centralised Solution
No need to store data in multiple systems that take care of different stages of the loan lending lifecycle! A loan management software stores customer data in a centralised place, allowing easier retrieval of data and providing a 360-degree view of the customer.
Irrespective of the branch or team that handles the loan application, the entire loan department should be able to access a singular and holistic view of all applicants.
4. Comprehensive, Integrated Origination, and Servicing Functionality
The ideal software partner should offer an integrated overview of all the different processes of the lending lifecycle, including loan origination, credit assessment, loan disbursal and loan repayment modules.
A good choice for fintech companies would be a program that offers a product suite of customisable modules that incorporate a comprehensive view and avoid the fragmentation of data.
5. Proprietary Credit Assessment with Thorough Analysis
The benefit of using technology to your advantage is by aggregating the right data and deriving insights from the data. The best software services should provide integration with all credit bureaus and other valid data points that help you assess the creditworthiness of the applicant precisely.
The top programs include proprietary scorecards that enhance credit bureau data and analysis from unconventional data points including GSTN, social media inputs, bank statement analysis and more. It should utilise the advantage of artificial intelligence and machine learning technologies to continually provide efficiency.
6. Smart Automation
An operationally efficient lending process is one that automates multiple mundane tasks so that your staff can focus on evaluation, analysis and other critical decisions. A good loan management system should save substantial time and energy as it speeds application submission, reduces human errors, reduces the need for manual re-entry of data and increase loan approval time.
A good software choice should start with foundational precursors based on lending industry best practices and then allow the company to customise based on their own style.
7. Mobile Access
Application-based services in mobile phones are commonplace today given the digital era. A mobile-based application can be immensely useful for both the customer and the company. From the customer’s point of view, it offers great convenience to handle their loan details from their phone. And, for the company, it serves as a medium to acquire new customers and retain existing customers.
8. Reporting and Analytics Capabilities
The loan management software should be able to generate analytical reports that help to decipher bottlenecks, streamline the process and improve productivity. It should not just improve your operational efficiency, but also help you oversee trends and resolve problems.
With continued used of the system, it should offer a scope of creating custom reports without breaking your head and help you assess KPIs, customer acquisition and process-related metrics.
9. Speed and Agility
A quick, transparent and seamless loan disbursal is what customers desire so that they can access capital resources without any hassle. Your entire lending process should meet the expectation of your clients.
A good loan management software should keep your customers informed of the loan progress as you quickly assess their creditworthiness and disburse their loans on time. The speed and agility of the loan lifecycle is a major asset to attract new customers.
10. Authenticated Access
As the data is stored in a singular and centralised repository, providing the right access to the right section of users is important. This will help different teams to access the relevant data without waiting for unnecessary approvals.
11. 100% Secured Services
A cloud-based loan system provides features like real-time sharing and updating of data, automatic creation of documents and more. Security of data is definitely vital when you are dealing with managing confidential and critical financial information of your clients.
Therefore, opt for a loan management software with built-in security features that cover data security, user security and network security.
12. Third-Party Integration
A loan processing module should also work in sync with your other systems like a CRM or ERP. It should be able to connect with remote sales personnel with up to date information so that they reach their targets.
All of this requires the software to connect with third-party applications to auto-populate information and save time on re-working.
13. Easy to Use
Like any other technology, you will have to train your employees to use the loan management system. A complex loan management software with a complex workflow is the last thing you want to deal with. Save yourself the headache and choose a software with a clean, simple user interface that doesn’t have much of a strenuous learning curve.
14. Technology and Customer Service Support
Last, but not the least you need access to a team of technical experts to take care of downtime and errors. This will enable you to stay focused on revenue-generating activities, whilst your onus of managing the technology platform is borne with the experts who are adept at handling any problems.
Choosing lending software is a major decision that needs careful consideration of the above factors. Always choose a provider that offers value to your business, taking care of all your short-term and long-term business requirements.
Finezza is a leading provider of loan management software that provides all the features to enhance the performance of your lending process. Get in touch with us today to know more.