Are you struggling to manage your loan approval process? Loan origination software may be the key to streamlining your processes, saving time, and increasing productivity.
Loan origination software is essentially a platform for managing and automating different processes throughout the loan servicing cycle. These processes include loan application, document verification, approving credit, underwriting, and more.
Businesses and end users can take advantage of a loan origination system for a variety of uses. Let’s take a look at some of the benefits and use cases of loan origination software.
It Saves Time
No matter the size of your business, it’s very important that as a lender you are able to meet the demand that customers set. In short, you’ll need to approve as many loans as you possibly can with full confidence. Pressure set by regulations and competitors have pushed lenders to use scalable lending practices that facilitate lightning fast customer acquisition.
Loan acquisition software can help lenders get more done in less time. This is done by providing a number of services that are fully automated that lending staff won’t have to even touch. Specifically, document collection processes save the most time for both the borrower and the lender. These automated processes ensure that all documents are submitted correctly and quickly.
It Prevents Fraud
On top of the pressure to approve loans quickly, lenders are pressured to intensely scrutinize every application to prevent fraud threats. This is a very necessary part of lending, but it is also one of the most time-consuming processes that lenders have to deal with.
Loan origination software can help lenders capture consumer applications and review them with total visibility into the application’s journey from submitted to approved or denied. This software will also verify your customers’ identities and reduce fraud risk via credit data, internal sources, and other enhanced means.
As this was once a tedious process subject to human error, now lenders can quickly and accurately evaluate a potential borrower’s ability to pay off a loan, all while integrating intelligent scoring for the purpose of pinpointing risks in the future.
Just as well, lenders can manage the most critical loan decisions through automated processes that implement policy rules. This takes a lot of the human error possibilities out of the equation.
You’ll Be Able to Streamline Processes
If you ask a group of bankers what their biggest challenge is in terms of initiating the loan process, most of them will probably agree that manual data collection and communications with borrowers are the biggest hurdles to get through.
As technology continues to evolve and the financial industry finally begins to move away from archaic, old-school practices, many lenders are recognizing that doing things manually can be difficult to keep up with. As such, there is an increased need to automate these processes in order to become more responsive and service-oriented for clients. Automation has made its way into the lending scenario, especially when it comes to streamlining the loan origination process with loan acquisition software.
A ton of different processes can be streamlined with automation software. These include:
- Credit data connectivity
- Acquisitions decisions
- Loan workflow management
- Loan approvals
- Compliance with lending regulations
- Fraud protection
- Data entry
- Identity verification
- Loan application processes
- Document verification
- Credit checks
It certainly makes sense why loan acquisition software is becoming the standard for many modern lending providers and banks.
Paperwork is a Thing of the Past
The loan application process can involve a lot of paperwork. Overwhelmingly so. With loan origination software, not only can lenders significantly reduce the amount of paperwork they do, but they may be able to eliminate paper completely from their business.
Less paper means more efficiency, less cost, a better environmental impact, and reduced risk. Loan origination software can make it possible for lenders to digitally collect and store any and all loan data for each individual client, including fill and e-sign forms and additional documents. LOS also makes it easier to access this information if need be. Just as well, client security, information loss, and identity protection are more achievable by using loan acquisition software.
By storing your borrowers’ loan documentation in a centralized, secure, and online repository, you’re benefiting both your business and your clients in terms of security and efficiency.
A Total and Complete All-in-One Solution
Using too many applications in your lending stack can be a pain. Not only will bouncing between platforms and logins negatively impact productivity, but it can also be costly paying for multiple licenses.
Loan origination software is an excellent all-in-one solution for lenders. This software takes on virtually every aspect of the loan processing timeline, which includes:
- Configuration. You can easily configure your loan origination system to meet credit rules and guidelines, as well as your bank’s own unique approval and acquisitional regulations. In many cases, lenders can create their own verifications training modules in the system.
- Entry. With flexible data entry options available through loan acquisition software, lenders can transfer application information into their system with extreme ease and speed. Applications can also be received from a variety of sources, be it the lender’s own website or an additional third-party system.
- Decisioning. The decisioning process can be significantly simplified by automating different rules that an application must meet in order to be approved for a loan. This saves a lot of time for lenders that can be focused on providing better customer service. Plus, lenders can automate as much or as little of this specific process as they are comfortable with.
- Underwriting. With easy-to-navigate dashboards and a knowledge base that is easy to search through, the underwriting process can be significantly less of a pain.
If all of those features don’t quite cover your business’s specific needs, loan origination software can also be integrated with a variety of third party entities, such as app sources, credit bureaus, car valuation specialists, and much more.
Financial Network, Inc. has been building flexible loan origination technology for America’s financial institutions for over 30 years. Insight and experience leads to the launch of a loan origination and decisioning platform focused on lender growth and autonomy. The mobile-first FNI Blueprint™ LOS, paired with the FNI DecisionCore™ decisioning platform makes up the lender’s ultimate toolkit for contactless loan origination, decision testing, and strategy implementation. If you’re interested in learning how contactless lending can help level-up your workflow, talk to a lending technology expert today.