loan origination software for banks


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loan origination software for banks

Many auto lenders wanting to improve the efficiency of business processes and reduce operational costs seek out a managed servicing or business process outsourcing (BPO) business partner. It’s become the preferred strategy for lenders everywhere that formerly managed these activities in-house but became bogged down by daily non-core activities. 

A well-run managed servicing BPO program can boost processing speed and quickly scale lending operations. Let’s explore the managed servicing BPO services all auto lenders should look for and how your business can benefit from them.

Outsourcing Loan and Lease Servicing Operations

One of the most frequently used outsourcing services is loan and lease servicing. An increasing number of auto loan and lease originations are now entirely digital, and a managed servicing BPO provider’s lease and loan servicing should be able to meet that expectation by supporting digitized and automated processes.

Digital loan and lease servicing allow borrowers to set up auto-pay, make one-time payments, access account information, and make changes to personal information online. Email, text, and web chat also enable borrowers to get insight or advice on their account.

With online lease and loan servicing, printing and mailing costs are reduced significantly, and the support center phones aren’t ringing off the hook. Other capabilities that are enhanced by automation and online processes include:

  • Automatically scheduled post-funding welcome calls.
  • Collateral management workflows for title corrections, follow-ups, and releases.
  • Accounting, cash management, and back-office payment/payoff processing.

By outsourcing loan and lease services, auto lenders can meet the expectations of today’s borrowers and automate high-volume processes to deliver services more efficiently while reducing operating costs.

Deliver the Best End-of-Lease Experience With Lease Maturity Management 

When borrowers opt for a short or long-term lease, you want their business to stay with you. However, transitioning can be challenging, and handling the complexities of off-lease vehicles puts pressure on your employees. Lease maturity management outsourcing takes that pressure off your people and your processes. 

The best BPO business partner will include the following in their lease maturity management service:

  • Experienced professionals, exclusively focused on lease maturity management.
  • Proven retention strategies aligned with different borrower profiles.
  • Streamlined processing to efficiently transition vehicles from borrower to auction. 
  • Automated solutions for consistent execution of even the most complex end-of-lease activities. 

Whether you’re looking to outsource single-lease, end-of-term process, or comprehensive solutions, it’s important to keep your borrowers happy and make the transition as smooth as possible.

Greater Efficiency in White-Label Collections

If you don’t have the appropriate technology, staff, experience, or compliance resources, managing collections can be risky. One option is to invest in upgrades, new equipment, or even a larger staff, but that’s a costly route.

Without an experienced managed servicing BPO business partner managing collections, you’re vulnerable to regulatory audits or fines, and you’re most likely not recovering as much as you could be from any delinquent accounts.

Instead of spending the time, effort, and money to get your operations up to speed, leverage the resources of an experienced outsourced provider with the necessary technology and recovery specialists already in place. Look for a managed servicing BPO provider that offers end-to-end collection capabilities and can demonstrate competence in the following areas:

  • A proven strategy and track record for collections processes.
  • Recovery specialists that have undergone mandatory and comprehensive regulatory training.
  • Collections licenses in all fifty states.

As a white-labeled extension of your business, an experienced managed servicing BPO business partner will efficiently handle the complexities of collections and do so in a manner that positively reflects the lender’s brand and reputation. 

Optimize Customer Service and Servicing

As a lender, your reputation is the key to your success. Borrowers will (almost) never go to a lender with a negative reputation. Even borrowers with a single bad interaction during the process are more likely to give a negative review. 

In this review-driven world, it is important that customers are ushered through the process as seamlessly as possible with an issue-free positive experience.

As a white-labeled extension of your workforce, you can achieve call center cost reduction without sacrificing customer service quality. Superior customer service starts with superior talent. Managing a call center in-house means being constantly engaged in the employee hiring and training process. These are efforts that could be spent growing your business. The right managed servicing BPO business partner understands the importance of lender-borrower relationships and the impact they can have on your success.

Choosing the Right Managed Servicing BPO Business Partner

When selecting a managed servicing BPO business partner, look for one that offers a comprehensive set of loan and lease services, from welcoming calls to off-lease vehicle remarketing. Although you may begin with only one of the services, you’re likely to expand your managed servicing BPO relationship when you realize the benefits. 

A single, experienced provider that focuses exclusively on the lending industry can be the fastest route to better customer service and reduced operating costs. When evaluating a potential managed servicing BPO business partner, make sure they offer these essential services and give you the flexibility to pick the type and level of service that align with your business needs. 

Getting Started

defi SOLUTIONS is an established managed servicing provider whose services enable lenders to focus on core lending activities that build the portfolio. With a wide variety of technology-enabled services and proven methods, defi MANAGED SERVICING employs the latest technologies and professional staff to address unique lending needs. If you’re struggling with the limitations of your current lending systems and operations, take the first step in realizing the benefits of defi MANAGED SERVICING and contact our team today.

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