loan origination software for banks


The defi Team Auto Dealers, auto loan origination software, Automation, Community Banking, defi CONNECT, defi INSIGHT, defi SERVICING, Digital Loan Documents, Digitalization, Loan Management, Loan Origination Software, Simplifying Processes

loan origination software for banks

It’s easy to get lulled into thinking that the software you purchased a few years ago is continuing to meet current lending needs. In the case of loan origination software for banks, functionality is rapidly improving. With features like mobile lending capabilities, data sources that expand lending opportunities, and machine learning algorithms that efficiently determine risk-adjusted rates, loan origination software solutions implemented just a few years ago already appear outdated. 

Loan originations are only one of many services a bank offers, but they can be an important on-ramp for new customers—especially those on the younger side who have the capacity to become life-long customers. If your loan or lease volumes are declining, your loan origination software may be the reason. 

What to Expect from a Modern Loan Origination Software for Banks 

When determining which loan origination software for banks meets your company’s and customers’ current needs, we invite you to compare your current software against these capabilities: 

A Digital Experience 

With nearly ubiquitous mobile connectivity, consumers have become accustomed to “anytime, anywhere” instantaneous commerce via mobile devices. To meet these expectations, the loan origination software you choose should support the following capabilities:  

  • An easy-to-use user interface that provides an intuitive user experience regardless of screen size.
  • Smooth loan or lease submission process that displays prompts based on context, such as the type of loan and information provided in previous prompts. 
  • Digital capturing and uploading of documents, such as identification, pay stubs, and proof of residence, using the device’s camera to eliminate paperwork that delays processing.
  • Start, stop, and continue features that allow applicants to initiate the process, step away, and continue at a later time without having to re-enter data.

Today’s consumers want convenience and quick confirmations of their requests—digital loan origination is critical to meeting those expectations. Equally important is the process that takes place once the entirely digital application is received by the bank.

Take a few minutes to learn how digital loan originations meets consumer expectations and opens the doors to more lending opportunities for banks.

Rapid Response to Loan or Lease Requests

Loan origination software for banks should leverage technologies that accelerate decisioning while simultaneously reducing risk. The best loan origination software for banks eliminates as many manual processes as possible and employs innovative cloud-based services to expand lending opportunities while minimizing risk. 

Automation accelerates loan or lease application review and decision making through:

  • Data validation formulas: They improve the accuracy of information entered and avoid problems that could delay decisioning.
  • Data-driven workflows: These significantly reduce manual hand-offs between steps. In the best cases, workflows coordinate the entire process—from submission to loan offer—without underwriter intervention, giving banks the ability to respond to a loan or lease application in seconds.
  • Auto-structuring: For applicants who initially fail credit policies, the process iteratively modifies loan terms with the goal of structuring a loan that meets credit policies.

When used in conjunction, these autonomous capabilities enable banks to field a larger number of loan and lease applications and respond with a competitive offer in a matter of minutes. 

You can also configure additional cloud-based information sources in many different ways to meet your unique lending needs:

  • Alternative credit data and trended credit data services provide banks with additional information regarding an applicant’s financial strength. These resources can boost the chances of applicants with thin credit files obtaining a loan. They can also alert banks of potential risks not revealed by traditional credit scores.
  • Fraud analytics and verification services for identity and employment alert banks of applications that are highly likely to default. 
  • Machine learning algorithms factor in a wide range of determinants more efficiently than any human underwriter to increase lending opportunities without increasing risk.

A distinct benefit of cloud-based information sources is the ability to select and configure the sources to gather the information that meets a bank’s unique lending practices. 

As additional services become available or enhancements are made to existing services, banks can quickly take advantage to further improve loan origination efficiency.

E-Contracts and E-Signatures

With convenient loan or lease applications via mobile devices and rapid decisioning, your loan origination software should also support e-contracts and e-signatures. That way, a loan offer can be delivered electronically to the applicant, quickly reviewed, and electronically signed. From start to finish, modern loan origination software solutions are enabling a completely digital loan origination process.

Does Your Loan Origination Process Meet Expectations?

Loan origination software is rapidly evolving to make it easier than ever for consumers to submit loan applications. Whether it’s for a personal loan, home improvement, leasing a badly needed second or third vehicle, or a longed-for RV to coast into retirement, modern loan origination software allows banks to meet consumer expectations and boost lending opportunities. 

Getting Started

defi SOLUTIONS provides configurable lease or loan origination systems, loan management and servicing, analytics and reporting, and a wide range of technology enabled BPO services. If you’re struggling with the limitations of your current loan origination capabilities and want to take the first step in realizing the benefits of modern loan origination software for banks, contact our team today or register for a demo.

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