Like every other industry, the lending industry is also taking advantage of automation. Automation not only automates loan origination and eliminates human errors but also streamlines the process. Banks and lenders can use credit analysis software, loan origination software and other cloud-based applications to close more loans. Though lenders have been using loan origination software for years, it is the software as a service that has been a significant change. People are collaborating from different places these days. Therefore, they need not access the loan origination system from anywhere and anytime. They are using small, portable devices like smartphones and tablets. All you need is a username and password and you can access your loan origination platform on your tablet or smartphone as well. Let’s discuss the following key features your loan origination software must have:
- A loan origination heritage
- Up-to-date technology
- Simple configuration
- Native integration with data
- Rapid implementation
Loan Origination Heritage
You want some features and technical capabilities in your LOS system. However, you should consider the vendor’s heritage as well. What is the on-the-job lending experience of your employees? Have they used any such software before? Do you offer one product only or you have a range of loan products? Do you serve only one industry or multiple industries? Consider your future endeavors as well.
In addition to easy configuration, increased efficiency and other technologies, the loan origination software should also allow you to integrate new and emerging technologies that will be introduced in the future. The following technologies can improve your improve efficiency and profitability:
Businesses of all sizes are moving to the cloud. This technology is more affordable, accessible, and efficient.
Mobile access allows you to work without any disruption from remote locations.
You get a better understanding of the performance, efficiency and profitability of your business using analytics.
Different lenders have different products and procedures. Your lending process depends on compliance with regulations, market dynamics, portfolio performance and success. You need programming expertise and time to make modifications if you are using an outdated loan origination system. The following are the key questions you need to ask:
- What is the technical expertise you need for configuration?
- Is the software configurable for your individual needs?
Native Integration With Data
Thanks to cloud technology, now you can easily access more consumer and financial data. This data helps in making informed decisions. You can improve loan performance and reduce risk. You will rely on data sources. This is an important factor that you need to consider while selecting your loan origination system. You also need to integrate other solutions with your loan origination platform.
Implementation can be time-consuming, costly and frustrating. The vendor should tell how much time it will take to implement the loan origination software. You are already using some other software applications to automate other processes. The loan origination platform should be easy to integrate with other software applications.
In the end, you should be able to customize the software according to your requirements.