loan origination software for banks

HOW TO STREAMLINE THE LOAN ORIGINATION LIFE CYCLE BY GOING DIGITAL

The defi Team 3rd party integrations, auto loan origination software, Automation, defi CONNECT, defi INSIGHT, defi LOS, Digital Loan Documents, Digitalization, Loan Origination Software, Simplifying Processes, Technology, Third Party Providers

loan origination software for banks

Dealers and lenders have already begun their digital lending journeys. Refining to best suit their unique end-to-end loan life cycle should be their next step. 

The goal of enhancing lending solutions is to provide a single, end-to-end complete platform to enhance lender capabilities. The latest offerings combine speed, ease, and value, greatly improving the borrower experience. Satisfied customers are more likely to return, resulting in business growth.

Available Improvements

One of the most common problems facing lenders is information silos. Departments within the lender’s business structure can lack fluidity and ease of communication as lease or loan applications move toward approval and through servicing to final payoff or vehicle remarketing. The result? Delays and confusion for staff and customers.

With the latest, most robust platforms, communication between departments becomes seamless. Available data is consolidated and easily accessible. Team members automatically receive updates on the progression. Task delays are eliminated.

In this era of high consumer demand, the need for speed and accuracy increases. Lenders intent on growth opportunities should seek the most advanced platforms to serve buyers best. A quick, easy approval and payment process will enhance loyalty, leading to repeat business.

A streamlined platform helps lenders keep current with the latest resources impacting buyer eligibility.

How Do Out-of-Date Processes Limit Non-traditional Buyers?

In recent years, credit score resources have expanded beyond previously accepted forms of collateral. Credit ranking agencies have already incorporated this new data point. For example, TransUnion now considers consistent rental payments an alternate measure of predictive analysis of loan repayment likelihood. Additional alternative credit data can include:

  • Banking information showing relationships and types of accounts
  • Utility records
  • Cable tv bills
  • Cell phone bills

Borrowers who’ve yet to establish sufficient credit benefit greatly from alternative forms of loan qualification. If records such as those mentioned above reveal a strong payment history, lenders are empowered to gain more customers. 

More recent solutions, including updated credit assessments, are achievable through configurable platforms. With this upgrade, lenders can easily integrate new standards and services that increase the pool of qualified customers.

Though updated scoring options exist, lenders who adhere to former standard practices lose out on interested buyers. Digital loan processing welcomes these potential buyers. 

Employing updated digital qualification methods capable of analyzing 90-day payment rates on credit cards, auto loans, or rent deepens the lending market. With a strong payment history confirmed, approvals increase by at least 10%.

TransUnion further reports that technology’s precision and reach will eliminate long-standing barriers to credit access. Digital qualification means lenders are looking to artificial intelligence and machine learning to enhance their decision-making by including typically excluded data points. 

The bottom line? Lenders who continue to rely on complex, out-of-date platforms underperform in the end-to-end loan life cycle. Employing the most updated artificial intelligence aids in assessing and applying current industry lending trends. Broader application of analytics expands buyer markets, capturing previously overlooked customers. 

Streamlining the End-To-End Loan Life Cycle

Options await lenders looking to upgrade. Robust platforms combining agility and speed are quickly gaining in popularity. Processes are quickened. End-to-end loan cycles are streamlined. More buyers can become satisfied, repeat customers..Newer and more powerful platforms are evolving. The benefits of exploring better ways to serve your customers and grow your business will impress you. So let’s talk about what you need.

Getting Started

defi SOLUTIONS’ provides configurable loan origination systems, loan management and servicing, analytics and reporting, and a wide range of technology-enabled BPO services. If you are looking to capitalize on all of the benefits of a streamlined end-to-end loan life cycle within your business, take the first step in realizing the benefits of modern technology. Contact our team today or register for a demo.

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