Lenders have long relied heavily on scores from the big three credit bureaus. However, the bureaus have recognized that alternative credit data improves lending decision quality and reveals new lending opportunities.
HOW TO HIRE THE BEST BUSINESS PROCESS AUTOMATION COMPANIES IN THE BANKING INDUSTRY
Business process automation (BPA) replaces inconsistently-executed manual activities with consistently-executed workflows and decisions. The result for financial services providers: Lower processing costs. Banks evaluating business process automation companies should look for the following capabilities to improve lending efficiency.
AUTO LOAN DEFAULT STATISTICS 2020
According to the New York Fed, US subprime loans are going delinquent at rates unseen since the Great Recession. Auto loan delinquencies 90 or greater days past due increased 47 basis points year-over-year to 4.64% ($60.2 billion) of all outstanding auto loans and leases in Q2, 2019. That’s baffling, considering the comparatively strong economic climate, record low unemployment, and many unfilled job openings.
HOW TO SELECT THE BEST COMMERCIAL LENDING SOFTWARE VENDORS
According to the American Bankers Association, only half of large banks and 38% of small banks currently use an online or digital loan origination channel. Commercial lending software makes it easy to quickly calculate loan periods, track collateral, and estimate cash flow.
LOAN ANALYTICS SOFTWARE FOR THE BANKING INDUSTRY
Big data has transformed businesses in every industry. Banks now use data acquired from nearly every step of the loan origination process. The reward: Detailed insight that can be applied to continuously improve lending efficiency and profitability.
BUSINESS PROCESS AUTOMATION FOR BANKING LOAN ORIGINATION
Business process automation has helped the banking industry bring efficiency to high-volume processes. It brings speed and accuracy to account openings and closures, credit card applications, and loan originations. Recent fintech innovations are transforming the loan origination process with lower processing costs, better quality, and consistency in lending decisions—and lower risk.
WHICH LOAN ORIGINATION SYSTEM SOFTWARE IS BEST FOR YOUR ORGANIZATION?
It’s an exciting time to be in the lending industry. Major technological advances in loan origination system software have made it easier than ever to process loan applications and automate decisioning. Computers are now doing most of the tedious work, saving organizations hours of potentially wasted time and countless resources.
THE PROS AND CONS OF SELECTING LOS VENDORS BASED ON MARKET SHARE
Lenders looking for an LOS often start by checking loan origination system market share. That can reveal industry leaders and niche players. You’ll get a high-level overview of software functionality and capabilities, and you might get some insight into each vendor’s market strategy and focus. It’s not a bad approach, but it does have some pros and cons.
4 MUST-HAVE LOAN ORIGINATION SYSTEM FEATURES FOR COMPETITIVE LENDERS
The lending industry is evolving. Quickly.
Innovative new loan origination system (LOS) features are helping lenders stay ahead, even in competitive industries like auto and real estate lending. Sophisticated technology takes the guesswork out of the loan structuring process, so lenders can make better decisions and assess risk accurately.
FINTECH DISRUPTION IN LENDING 2019
Mentioned in the context of a technology discussion, disruption invariably means innovation. The world of finance is undergoing disruption, and as financial services organizations evaluate and adopt the latest fintech innovations, both the organizations and their customers are realizing the benefits.