Today, community bank lending workflow solutions provide a more sophisticated level of automation.
Many community banks are now evaluating loan servicing platforms from specialist providers to improve efficiency.
Our guide covers seven qualities of an excellent loan servicing platform to ensure the greatest impact on your operational efficiency
Alternative data is helping community banks identify new opportunities and reduce risk.
Using alternative data, credit unions can more fairly assess applicants—even those who might never held a credit card or who have just opened a new account. By providing loans to these members, credit unions can corner a market that some other lenders neglect.
In our work with community banks, many have voiced the need for greater efficiency in handling high-volume, repetitive loan servicing processes. We’ve identified three compelling reasons why community banks are outsourcing loan servicing.
The community banking industry is abuzz over loan servicing companies. Third-party loan servicing is one of the biggest community banking trends of the decade. The loan servicing software market is a $522.3 million industry and is expected to grow to a $785.6 million industry over the next five years.
Having an efficient back office that essentially runs itself is one of the best ways to stand out in today’s saturated community banking industry.
If you’re looking to improve your customer service specifically, here are just a few of the back office tasks you can delegate to an experienced third party:
Fraud detection and risk management;
Payment processing and repayment scheduling;
Member contact information and communication preferences;
Loan or credit card application decisioning;
Level 1 support;
Customer web portals;
Automated call centers;
Back office to front office communications;
Staff training and recruitment.
If you don’t have an efficient and well-staffed back office, then your front office will suffer. This is where back-office outsourcing comes in. There are a lot of perks to outsourcing all of your back office needs, especially if you’re a small or medium-sized lender with limited resources.
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