Auto Loan Origination Automation: Tools to Enhance Customer Experience

loan origination software comparison

Loan origination automation tools make a big difference when seeking to best serve your customers. Automation also helps conserve your employees’ valuable time that would be better spent promoting customer loyalty.

So, what features within auto lender automation systems encourage greater customer loyalty?

  • Virtual borrower applications with document data capture make applying easier.
  • Returning decisions in seconds eliminates uncertainties.
  • Automated risk assessments help predict applicant behavior, eliminating fraudulent applications so lenders can concentrate on legitimate customers.
  • Automated deal structuring offers multiple options for applicants, while also opening up  deal structures for applicants not automatically approved.
  • Automatic boarding of a funded loan to a servicing system on an end-to-end platform means borrowers will be with you for the full loan or lease lifecycle.

Virtual applications featuring document capture capabilities make applying for a loan easier for an applicant, leading to higher loan volumes for the lender. To truly gain from automation, however, a lender’s virtual interface for borrowers must adapt to avoid siloing information, allow for straightforward communication, and ease document collection. Further, automation assists with quickly and thoroughly processing applications, verifying identities, performing credit checks, and calculating appropriate lending terms.

Perfecting document capture involves digitally converting images – including typed or written text – through a process called optical character recognition (OCR). By reading and recording the applicant’s data, OCR speeds the steps leading to approval or denial. This saves on time and labor.

Automatic decision-making also speeds up and streamlines the application process. As one of the more valuable tools in a lender’s arsenal, it allows automatic acceptance of applicants who fit a lender’s criteria, so as to receive near-immediate approval. This means less time spent by customers applying for loans and more time spent enjoying their purchase. These types of loan and lease tools provide virtual options that your customers want.

While speeding up the underwriting process, automation also helps lenders understand each applicant’s risk level. Services using artificial intelligence (AI) help analyze applicants to evaluate which applicants to review for fraud, identify high-risk applications that need additional review, and bring additional information into the decision-making process when necessary.

Another solution involves the restructuring of a loan. What if a loan could automatically be restructured based on certain criteria? Automated loan restructuring will not only increase customer satisfaction, but also increase your win rate and improve retention.

When applicants first make contact with a lender, loan origination automation tools should optimize the borrower experience and help the lender build borrower trust. That automation and trust should extend throughout the life of a lease or loan. However, this won’t happen if the lender’s servicing system doesn’t let the borrower interact with how they choose or when they need, or if there are problems with the onboarding process. If initial contact is less than satisfactory, drop-off rates will increase, and keeping that customer throughout the life of the lease or loan or as they go into another purchase decision will get more difficult.

These are the basics of virtual lender offerings. While a wealth of standardized platforms are available, consider whether they truly serve all your needs.

Choosing the Best Loan Origination Automation Tools for Optimal Service

In the recent past, when it came to loan origination software, lenders could either buy it or build it. Bought systems came preconfigured with the most frequently used services. Built systems could take years to develop and customize to a lender’s needs. Lenders often made a choice based on what worked best with their current processing methods.

But what if there was a system that offered the best of both worlds? One that offers a seamless blend of basic options with customized choices to best support the lender’s needs?

What High Demand Means for Dealers

With sales at their highest point since World War 2, lenders are busy, and keeping up with this increased demand requires automation. Without automated processes, lenders can’t respond as quickly as competitors that are using more modern systems.

Loan origination automation tools help busy lenders accept digital applications, underwrite them quickly, and provide a response to their application in seconds. These tools additionally confirm an applicant’s identity and employment status, while also assessing their level of risk.

Within the last two years, lenders have seen many unexpected market changes that require quick reactions. Automated tools provide solutions that help them with their increased processing needs.


Lenders Benefit From the Right System

Choosing which LOS tools are right for your business can be challenging. Lenders want to select the best tools to support customers’ needs concerning loan origination. Automation tools more importantly provide a better customer experience. For this reason, it’s important that lenders carefully choose a system that provides both flexibility for their business and value for their customers, with which defi SOLUTIONS can help.

Getting Started

defi SOLUTIONS  offers lenders an end-to-end, total solution for the loan or lease lifecycle. Partnering with captives, banks, credit unions, and finance companies, defi’s market-leading solution helps lenders exceed borrower expectations. From virtual engagement through the complete lending process, defi sets new standards for flexibility, configurability, and scalability in originations and servicing (by your experts or ours). So if you’re curious about loan origination automation tools and the possibilities of a complete end-to-end solution for your unique lending lifecycle, take the first step. Contact our team today or registering for a demo.

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