Achieve a Better Lease or Loan Origination Automation Experience With These 5 Tips

Loan Origination Automation: A Business Case for Adopting Better Lending Technology

Success for lenders depends on their ability to stay competitive. To do this, savvy lenders need to leverage new technologies to keep ahead of the competition. Using the latest cloud-based software for lease or loan origination, lenders can reduce decision-making time while maximizing profitability and maintaining compliance. 

If you’re ready to update your legacy software and are underwhelmed with your current platform’s performance, these tips will help you achieve a better lease or loan origination automation experience. Let’s take a closer look at crucial functionalities lenders should expect when investing in lease or loan origination automation systems.

Why Modern Loan Software Leaves Legacy Systems Behind

Digital transformation has changed the lending industry dramatically. With the increased adoption of cloud-based software, it’s brought to borrowers a lease and loan origination automation experience that legacy systems can’t match. Transitioning also benefits lenders by increasing efficiency and agility. 

Lenders benefit by leveraging technology and automation more effectively to drive productivity and efficiency within their organizations. Some basic distinctions between legacy software and modern software are demonstrated here:

Legacy Software

Modern Software

Legacy systems are slower while also costing more to develop and maintain.

Programming skills are required for even minor changes and take longer to get market-ready. 

Modern software is faster, more affordable, and adaptable. 

Changes can be made easily by lending professionals without programming skills.

Legacy systems were created during simpler technological times when computers were less versatile and flexible. As a result, these older systems limit what users can do, while modern software opens up new possibilities. Let’s look at some critical advances now available to lenders that have created truly unique lease or loan origination automation experiences for borrowers.

How to Look For the Best Process Efficiency Results

This new generation of lease or loan origination software introduced features and functionalities that help lenders increase profits and provide better service to borrowers. Here are some significant points that

lenders must develop to avoid losing out on lending opportunities:

Mobility to Meet Changing Demographics 

The growth of online lease or loan origination is greatly influenced by two factors:

 Modern Demographics

Consumer expectations continue to grow due to the increasing availability of digital lending products and services. Today’s borrowers have become accustomed to the readily accessible information made available by this exciting new technology.

Mobile Technology

Mobile technology has changed the way we work and live, with advanced, cloud-based software replacing outdated technologies and performing tasks once done manually.

To meet the expectations of today’s borrowers, lenders need a lease or loan origination platform that allows them to take advantage of the growing demand for online loans. They also need to partner with a vendor that closely monitors and incorporates new technologies. Keeping your lease or loan origination system up-to-date ensures that your business will perform at the highest level possible.

Auto Structuring and Auto Decisioning for Rapid Decisioning

Automated structuring offers borrowers an alternative in situations where their loan or lease would not normally be approved. In seconds, auto-structuring restructures and returns deals that fit a borrower’s situation and a lender’s credit policies.

Used with automated structuring or on its own, auto decisioning also leads to more efficient, time-saving, and accurate processing. 

Auto-decisioning automatically applies rules and policies to an application. 

Let’s break down the key benefits of auto-structuring and auto-decisioning:

  • Considerably reduced decision times, allowing you to return decisions to dealers in seconds.
  • Increased closure rates (with or without increased application volume) with near-instant decisions.
  • More time for underwriters to focus their skills on more in-depth processes (like portfolio reviews) due to the automation of time-consuming tasks.
  • Improved accuracy and consistency in deal structures.

Auto-structuring and auto-decisioning differentiate lenders. With auto-decisioning, you can deliver instant responses to dealers or applicants, boosting dealers’ vehicle sales. With some lease or loan origination platforms, lenders can offer multiple deal structures, creating additional incentives for vehicle sales and loan opportunities. 

Built-In Compliance With Audit Trails for Added Security 

 Automated origination software is built to help lenders conform to standards, including through the provision of real-time audit trails and enhanced security measures. This increased security also helps lenders avoid litigation.

Core compliance functions within this software help you ensure that your company conforms to all relevant regulations. This offers an additional layer of protection against any failure to follow lending rules.

Today, compliance has become essential to every business, with most software providers now adding compliance features. It’s not just about complying with regulations and following appropriate processes. Preventing fraud and reducing liability just makes good business sense.

Compliance features ensure that all your transactions follow the law. Besides entailing legalities, it helps lenders know your customer (KYC) while bringing greater transparency to the process.

Integrations With Automated Application Sources for Expanding Lending Opportunities

Utilizing automated application source integrations allows lenders to quickly establish connections with new dealers and borrowers, bringing with it tens of thousands of new lending opportunities.

Easy integration with systems like:

CU Direct



When these modern lease or loan origination systems are pre-integrated, it also helps rapidly increase application volumes for lenders. 

Higher Approval Ratings With Alternative Data

According to Forbes, there are about 50 million credit-invisible consumers in the United States whose profiles aren’t completely revealed through ordinary credit checks. These potential borrowers lack sufficient traditional credit data, for which modern automated systems provide vital insights overlooked by these reports. Access to this data allows lenders to mine this criteria from multiple sources, giving them an advantage over competitors by increasing approval rates.

Alternative credit data can include sources such as:

Real estate ownership

Utility information

Rental records

Driving records

Bank accounts

When volumes of new lease or loan applications drop, alternative credit data can still keep your approvals high. This allows lenders to quickly identify patterns in data to establish an applicant’s risk level, facilitating informed decisions that will enable you to stand out against your competitors.

Despite these innovative capabilities available in advanced lease or loan origination software, legacy systems are still widely used in the auto finance market. Updating outdated software used to be an involved process that was both time-consuming and costly. However, by implementing cloud-based technologies, it’s now possible for companies to quickly, efficiently, and cost effectively configure their systems with new features.

Prompt Implementation With Configurable Software

Due to the advancement of new technology, your lease or loan application process is bound to change. That’s why you’ll need to upgrade software so that these concepts can support a fully configurable lease and loan origination automation experience.

 To do that, lenders need a software that: 

  • Allows lenders an excellent user experience (UX) on both mobile devices and desktops.
  •  Gives configuration options to tailor the interface to your unique brand.
  • Supports mobile loan applications from anywhere at anytime. 
  • Controls which fields are shown based on context or previously entered data with display logic.
  • Supports data validation using rules, masking, minimum & maximum values, and integrations.

Older systems that lack the latest advancements in automation, scalability, and flexibility are quickly becoming unsuitable for meeting the demands of a technology-driven world. Partnering with a vendor that offers configurable solutions that fit your unique lending needs will help you gain a competitive edge.


Achieve The Best Lease or Loan Origination Automation Experience

Lenders can achieve the best lease or loan origination automation experience with mobile capabilities, faster decision-making, and better data resources. If you’re struggling to compete in the current market, partnering with a vendor that offers configurable solutions to fit your distinctive lending needs will help not only give you an edge over your competition but put you at the front of the pack.

Getting Started

defi SOLUTIONS provides configurable lease or loan origination systems, lease or loan management and servicing, analytics and reporting, and a wide range of technology-enabled BPO services. If you’re struggling with the limitations of your current lending technology solutions and want to achieve a better lease or loan origination automation experience, take the first step in realizing the benefits of modern technology. Contact our team today or register for a demo.

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