How easily can you make modifications or customize your loan management system to meet current (and future) lending needs? It should take only minutes to make a modification. Legacy lending software typically requires programming expertise to make modifications, often done at extra cost by the software vendor or an implementation partner. Time required to make the changes can be weeks to months, depending upon the type of change requested or availability of programming resources. That’s hardly the way to respond to the demands of a competitive lending market.
If your answer to the question above was “It’s not easy,” it’s time to move to a modern loan management system which lets you make configuration changes yourself, instead of requiring IT requests for every modification. Delaying the decision to move will only decrease your ability to remain competitive.
Loan Management System Configuration
Loan management system configuration is the modern way to quickly make needed modifications or changes. Industry and economic forces pressure lenders to continually respond with changes to policies, processes, and practices, such as:
- Increasing and ever-changing federal, state, and local lending regulations;
- Need to continually evaluate credit policies and make adjustments to optimize profit in response to market fluctuations; and
- Shortage of programming skills.
Lenders who still rely upon programming to make system changes are at a disadvantage. In comparison, loan management system configuration offers numerous advantages and benefits:
- Menu-driven methods (click, drag, drop) to quickly and easily make modifications to nearly every aspect of your loan management system;
- Allow authorized, knowledgeable business users—those who intimately understand the lending practice and processes—to quickly implement changes; and
- Maintain auditable records of all configuration changes made, when, and by whom.
Every lender has unique practices and processes. It’s highly unlikely an “out-of-the-box” loan management system will meet your needs precisely. Cloud technologies enable rapid implementation of a loan management system and reduce operational costs. Configuration similarly accelerates implementation, and reduces operational costs throughout the life of the system. With configuration, you can turn an out-of-the-box loan origination management system into one that meets your specific lending needs without costly customization and development.
What Loan Management System Configuration Does for You
Here are some of the specific capabilities and benefits lenders get from loan management system configuration.
Quick and Cost-effective Changes: No one is better suited to recognize the need for changes to your lending process and make them than experienced, knowledgeable employees. They deeply understand your business. They have context as to why changes need to be made (often for compliance, productivity, process optimization, and/or cost reduction), and understand the impact of the changes. Configuration puts the power of change in the hands of those most qualified to make the change. No need to delay because of scarce programming resources. Configuration enables you to change the loan management system according to your business guidelines and needs.
Authorized Users Make Configuration Changes: Configuration gives you complete control over who can make loan management system changes. Assigning role-based permissions and responsibilities to individual users gives them authority, while controlling the which configuration changes they can make. Responsibilities can be assigned based on:
Auditable History of Configuration Changes: All configuration changes made are recorded in a system audit history. You’ll know who made what changes and when they were made. In the event of an audit, configuration history provides evidence of changes you made to comply with regulations in effect at that time.
Configuration Pages Guide Your Changes: In a legacy loan management system you need access to the software code, programming expertise, specifications for the changes to be made, and time to make the changes. Loan management configuration requires none of that. Dozens of configuration pages, organized according to major steps or activities in the lending cycle, guide you through the changes. Configuration changes are typically made via click, select, drag, drop, and enter values using the sections, data fields, formulas, and rules on those pages.
You Need Configuration to be Competitive
Industry and economic dynamics require lenders to quickly and continually respond to these fluctuations. The time, cost, and complexity of making changes to a legacy lending system hinder your ability to keep pace with market dynamics. Configuration capabilities of a modern loan management system let you quickly tailor an out-of-the-box system into the loan management system that meets your unique lending needs now and well into the future.
The lending experts at defi SOLUTIONS welcome the opportunity to discuss your loan management needs and demonstrate the power of configuration. With more than 20 years lending experience, we understand your challenges. Contact our team today or register for a demo of defi LOS.
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