Comparing Loan Origination Automation Providers: The Top Capabilities to Insist On

loan origination software comparison

In the past year and a half, the lending market has seen an unprecedented amount of change. Lenders are having to pivot their loan origination processes to compensate and stay competitive. Older legacy systems don’t have the flexibility to keep up with market changes. This is why lenders are now looking for software solutions that are more agile and tailored to their modern needs. 

When comparing loan origination automation providers, there are some important factors to consider. Let’s examine the top capabilities to look for to find the right one for your lending business.

The Benefits of Updating Your Legacy Software

Today’s dynamic lending industry requires lenders to quickly and frequently respond to market fluctuations. Legacy systems severely hinder a lender’s ability to keep up. There’s a considerable effort, time, and cost that goes into making even small changes to them.

On the other hand, modern loan origination software with configuration capabilities lets you quickly tailor an out-of-the-box system. Not only so you can quickly meet your current lease and loan origination needs but also for any future needs down the line. Some of the key benefits of updating your legacy software to modern loan origination software include:


Rapid Implementation Time

Emerging lease and loan origination technologies incorporate key integrations and are designed by lending industry experts. They have a faster time-to-market, streamline the lending process, and are easier to modify in response to market dynamics. 

Maintain a Competitive Edge

Loan origination is fast paced and competitive, with lenders vying for the same clients. The latest cloud-based technologies are a must-have in order to respond quickly and stay competitive. Lenders who don’t invest in automation risk losing customers to their competitors.


Keep Your Operation Compliant

The regulatory environment for auto lending is complex. Modern lending software comes equipped with features that help with compliance regulation and data security, such as audit logs, data encryption, and access control.

Improve Customer Experience

Cloud-based loan origination automation allows institutions to react to changing market conditions sooner than their competitors. But, it also allows lenders to provide better customer service through mobile technologies, reducing wait times, and improving the accuracy of decisions.

Best of Both Worlds: Software That’s Both Flexible and Stable

Lease or loan origination software has evolved to the point that it only takes a few minutes to make a modification. Configuration changes can be made by any user with the proper authority and system privileges. This is a major break from the old build method of software programming, which typically required a development specialist to make any modifications. 

Development changes were often done at extra cost by the software vendor or an implementation partner. Depending on the type of change or availability of the programming resource, the time required to make the change could be weeks to months, and in some cases years. Take a look at the difference between these two build methods:

Software Development

Requires time-consuming, custom programming to transform out-of-the-box software into a solution that will meet your unique lending needs. Any desired changes require complex programming, an unpredictable amount of time, and professional software developers.


Modern loan or lease servicing software has eliminated the need for programming and given lending professionals the ability to configure the system to meet their lending requirements. 

With configurable software, you can easily make modifications or customize your loan management system to meet your lending needs (and future needs).

Cloud technology is what enables the rapid implementation of loan origination automation systems. It’s transformed lending technologies from stationary, monolithic systems into systems that are mobile, agile, and cost-effective.

Configuration software gives lenders a new way to transform out-of-the-box systems into one that meets their specific lending needs. So you get the best of both worlds with a solution that’s both flexible and stable.

What the Best Lease or Loan Origination Automation Providers Will Offer

Every lender has its own unique lending process. The best lease or loan origination software products will offer a wide range of automation capabilities that support greater efficiency in all areas of loan servicing. To aid your search, here are the top capabilities to insist on when comparing multiple loan origination automation providers:

Uses the Most Advanced Technologies

Not only should your investment in a new loan origination system increase your efficiency and configurability, but it should also enable you to take advantage of new and emerging technologies as they become available.

There are crucial technologies that are driving the lending industry’s advancements. They have the potential to significantly and continually improve efficiency for you. These include:

  • Cloud-based computing/SaaS: Across all industries, businesses are moving to cloud-based computing or Software as a Service (SaaS). The operational and financial benefits of these systems are proven over on-premise, outdated loan origination systems. The list of benefits includes increased scalability, reduced operating costs, and frequent software updates from the vendor.
  • Mobility: These days, more and more people want to be able to apply for a loan—without leaving their house. In our same-day delivery, live streaming obsessed world, consumer demands are higher than ever. You want to have a loan origination system that will provide you with real-time access to loan approval status. And keep your potential borrower up-to-date on their lease or loan status.

Provides Easy Integration With Major Third-Party Data Providers

Cloud capabilities allow lenders to access an ever-growing list of data providers such as application sources, credit bureaus, valuation guides, id verification, and more. These sources help lenders make informed decisions, reduce risks, and improve loan performance.

It’s crucial to find a loan origination system with the ability to provide seamless integration with third-party data providers. Know which data sources are essential for your lending process to ensure you partner with a vendor who provides integrations with them. That way, you can immediately access the resources you need (without the cost or time of custom integration). 

Utilizes Auto Structuring for Decision Rules

Auto structuring can fully replace manual application reviews and decisioning. This capability allows lenders to turn underwriting decisions into an accelerated, predictable process. For those applications that match a lender’s policies, auto structuring accelerates the decision time to a matter of seconds and instantly responds with an offer. 

Intelligent decisioning systems can analyze vast amounts of data in a fraction of the time required by a human being. They can also provide an unbiased and objective decision. 

Auto structuring captures the right loans for your lending business. But, it also gives dealers a quick response so they can close their sales and get borrowers the deals they deserve. With this technology driving your decision rules, you will be able to analyze vast amounts of data in a fraction of the time.

Reduces Fraud Risk With Machine Learning. 

The latest systems have advanced machine learning capabilities that help reduce fraud risk. They can analyze millions of loan applications and identify potential signs of fraud. Two of the most frequent fraud schemes in loan applications are identity theft and misrepresentation of employment and income. Modern systems have identity verification and fraud detection services just for that reason. Point of entry algorithms help lenders eliminate fraudulent applications before they happen.

Provides Analytics for Greater Data Insights

Analytics is another capability that has a significant impact on a lender’s bottom line. Modern lease or loan software allows you to capture and create significant volumes of data on applicants, processes, borrowers, and lease or loan data throughout the lending process. This data contains a wealth of business insight that helps lenders continually improve lending process efficiency, reduce risks, and improve portfolio performance.

You’ll want to ensure your software provider has analytic capabilities that come pre-integrated with their product. Integrating third-party analytical tools can be complex and costly. Instead, look for solutions that will provide out-of-the-box reports, which will help get better insight into your underwriting efficiency and portfolio performance.

Configurable Software Tailored to Your Specific Needs

If you are in the market and comparing different loan origination automation providers, or if your current loan origination automation software isn’t keeping up, adopting the latest configurable technology could be exactly what you need to gain a more competitive edge.

When evaluating vendor capabilities, look for easy integration with a wide range of cloud-based lending services.

Getting Started

defi SOLUTIONS is a leading provider of configurable lending software. We’d welcome the opportunity to demonstrate why our solution is the best among lease or loan origination automation providers. So take the first step toward a more efficient lending process by contacting our team today or registering for a demo of defi LOS.

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