no-contact loan

LEASE OR LOAN ORIGINATION AUTOMATION: COSTS AUTO LENDERS MAY NOT HAVE CONSIDERED

The defi Team 3rd party integrations, auto loan origination software, Automation, defi INSIGHT, defi LOS, Loan Management, Loan Origination Software

no-contact loan

Today’s consumers can get packages delivered in less than a day, hire a driver and get picked up in a few minutes, and watch their favorite shows live-streamed to any device. The faster and more convenient industries make their services and products, the higher customer expectations and the companies’ costs climb.

Consumers buying or leasing an auto are no different. They expect the ability to shop from anywhere with fast, personalized service to help them get through the process as seamlessly as possible. This means that auto lenders have to find a way to keep up with the latest technology in order to deliver the services consumers demand. As lease and loan origination automation technology costs can run high – whether buying a product off the shelf or building from scratch — and building can be out of reach for many reasons, competitive lenders are turning to a different solution, a hybrid solutions that offers auto lenders options and a level of customization they need for their unique business models.

Consider These Loan Origination Automation System Costs Before Building

Building a loan origination automation system from scratch takes a Herculean effort. Even if you’ve scoped out everything you want or need from a system today, you have to consider:

  • The system must be hosted
  • It requires support of features, compliance, and third-party integrations
  • And, by the time your software is ready to deliver, the market will have changed, or your business model will have changed, and you will already need to make modifications and updates. 

Your project is almost guaranteed to have cost overruns. And then there are the long-term expenses.

What Is the Cost of Maintaining a System Long Term? 

The cost of maintaining your own healthy LOS system would vary depending on the size of your operation, the complexities of your system, and how much and how often you want to improve and upgrade functionality, features, and your product architecture foundation. 

First, there’s the human cost: You’ll not only need expert originations staff that understands your business but also an expert team to keep your system up and running and doing things like: 

  • Fixing bugs
  • Correcting security issues
  • Staying current with the latest compliance issues
  • Maintaining integrations with valued, third-party information sources
  • Keeping up with innovation in technology

And then there’s the future.

What Is the Cost of Future Change?

This question is impossible to answer. Future needs depend on what you settled for to begin with and how far into the future you’re looking. Auto lenders with a LOS running on outdated technology will eventually hit a dead-end and want to take advantage of new products and ideas as:

  • New functionalities emerge, and you want more of them in your current system.
  • New solutions become available and can offer better features and functionalities than what you currently have in place.
  • Compliance and industry standards increase, and you want to lower risks for you and your borrowers.

With new loan origination automation technology, lenders can receive better insight into their borrowers, improve business operations, and cut operating costs.

Build vs Buy: Today’s Choices

Until recently, auto lenders have had to choose between buying a pre-built LOS or building their own from scratch. But now there are alternative options for companies that want to improve their workflow without wasting resources. The innovative options?

  • Build your own using some scratch development and other tested and tried vendor-supplied components
  • Build by configuration

For many (if not most) auto lenders, building by configuration offers a more cost-effective and timely solution. Configuring a system can take a mere fraction of time, effort, and cost as compared to building. This way, you control the creation of a product that fits your unique lending needs but at a lower cost and lower risk than building on your own. 

A configuration system uses:

  • Configuration menus
  • Mobile UX
  • Workflows
  • Queueing
  • Rules
  • Security
  • Scorecard
  • Pricing
  • Stipulations
  • Verifications
  • Third-party integrations

Build by Configuration Plus Integrations

With today’s build by configuration options, pre-integrated lending services are available and ripe for the picking. The best lease or loan origination system providers offer a range of pre-integrated services, including:

  • Dealer management 
  • Credit bureaus
  • Identify, income and employment verification
  • Alternative credit data
  • Fraud analysis 
  • Vehicle valuation
  • Digital document capture
  • eContracts
  • eSignatures

With a modern loan origination system automation system, you can achieve the uniqueness you are looking for without having to create the functions yourself, implement your systems with as much or as little assistance as you like, and not worry about out-of-control build and maintenance costs and upgrades.

Getting Started

 defi SOLUTIONS provides a cloud-based, configurable loan origination system with innovative pre-integrations provided by defi ORIGINATIONS, giving you a solid foundation of components to build your own brand into your platform. You can build a LOS system that has no unpredicted lease or loan origination automation costs and all the customizations you need. Contact our team today or register for a demo.

(Visited 8 times, 1 visits today)