The ever-changing world of technology requires industry-leading auto lenders to evolve their loan origination systems (LOS) to maintain a competitive upper hand.
The landscape of loan origination automation is constantly evolving. From stricter compliance regulations to improvement in efficiency to the need to quickly evolve your lines of business, there are plenty of reasons to update your LOS. You certainly don’t want to be using the equivalent of flip-phone tech when your competitors have the latest features streamlining their loan and lease origination processes.
Long past are the days when auto lenders had to decide to either build loan origination business processes from scratch or hire someone. Now, working from configurable solutions is a much more affordable, and effective option.
Modern Tech Cost Less to Maintain
Holding on to outdated technology can cost your business more than it saves. It’s a similar concept to maintaining an old vehicle, but the aging process is much faster when it comes to tech. In fact, a study showed that ten legacy systems used in government operations were responsible for over $330 million in operating and maintenance costs every year.
Older software isn’t just expensive, it also poses risks because it lacks the critical security updates of the newer counterparts.
Keeping Your Tech Updated Improves Security & Compliance
From a security standpoint alone, updating your LOS tech can be beneficial. And then there’s the increasing number of laws, rules, and regulations auto lenders must abide by every year. Cyberattacks, potential data breaches, and hefty fines are just a few of the many reasons auto lenders are pursuing a more modern way to build the LOS they need quickly.
With each new generation of modern LOS systems, you get enhanced efficiency, security, and compliance support at nearly every step of the lease and loan origination process. When it comes time to refresh or rebuild, auto lenders are choosing a loan origination system with configurable business processes, flexible cloud-based software that can easily integrate with third-party information sources and be regularly updated with best-of-breed services and solutions.
How to Build a Loan Origination Process for Auto Lending
Historically, auto lenders had to decide whether to build loan origination processes from scratch or buy from a third party. There’s now a smarter way to build—working from a configurable solution where you no longer have to choose between flexibility and reliability.
You can start off with a firm foundation: a core system with pre-built integrations and regular updates that are managed by the software provider. But the most valuable aspect of this build option is the robust API layer and API engine that allows you to accelerate your build, lower lifetime costs and risks while you still get to craft a system that meets your unique lending needs. So you never have to worry about your tech falling behind.
Partnering with the best providers of configurable loan origination software can:
Allow a Lender to Evolve to Fit the Market
The ability to generate more lending opportunities or take on brand new lines of business via configuration (not development) can make an enormous difference (during a pandemic or not) and isn’t something your technology should decide for you.
Create a Scalable, Flexible, and Stable Solution
When a business scales, its technology needs to expand to accommodate its growth in size and type. You need configurable LOS software that is inherently scalable, flexible, and stable.
Provide Hassle-Free Maintenance
Automatic hardware and regular software upgrades are managed by the provider, allowing you to focus on running your auto lending business, not your technology.
With a cloud-based, configurable solution, you have all the foundational components you need to build an agile solution and represent your lending brand with a customized platform.
Thoroughly Tested, Pre-built Integrations Eliminate the Need to Code From Scratch
By starting with modern, pre-built components, you have the opportunity to make that platform your own and achieve the uniqueness you are looking for without having to code and create functions yourself.
Quickly integrate through configuration menus to create an origination solution that matches your needs:
- Mobile UX
- Workflow
- Queueing
- Rules
- Security
- Scorecard
- Pricing
- 3rd party integration
- Stipulations
- Verifications
This handpicked approach results in the system you want with a lower total cost of ownership, rapid delivery, and an LOS system that’s always modernized with the latest innovations. By partnering with a proven provider and building from a firm foundation (by configuration using attested integrations) you’ll be ahead of the competition with both feet in the future of lending.
Getting Started
If you’re ready to build a loan origination business process or refresh your aging LOS system and stay at the leading edge of technology, defi SOLUTIONS provides flexible, scalable, configurable solutions to enhance the efficiency of lease or loan originations. If you’re struggling with vulnerabilities in your current lease or loan origination software, take the first step and contact our team today or register for a demo.
