If your loan origination software (LOS) runs on servers located in your facility, annual licensing and maintenance costs are increasing, and software functionality hasn’t kept up with market needs, you can’t be competitive. You need to implement modern cloud loan software.
Cloud technology and infrastructure from providers like Amazon have redefined how software is implemented, supported, and updated. Software as a Service (SaaS) makes it far easier to implement, configure, and integrate with other cloud-based services to meet the needs of today’s lending market. Cloud, AWS, and SaaS are three must-haves on your list for a new loan origination solution..
Cloud Loan Software Advantages
Cloud has radically changed the economics of software management. Capital expenses previously associated with on-premises server and storage hardware, electricity, cooling, and space to house this infrastructure are significantly reduced. Server and storage hardware are now managed in huge server farms connected with high-speed communications networks. Economies of scale give cloud providers a tremendous economic advantage.
When you use cloud loan software you’re using computation and communication resources that might otherwise be unaffordable with your current CAPEX budget. You’ll get additional value and efficiency from automation and integration with other cloud-based services, which improving decisioning and reducing risk.
AWS: The Leading Cloud Platform
RightScale’s State of the Cloud Report indicates AWS is the leading cloud platform, with 64% of respondents from multiple industries indicating that they run applications on AWS. Gartner’s Magic Quadrant for Cloud Infrastructure as a Service ranked AWS as the leader 8 years in a row. Amazon continues to invest in infrastructure and operational improvements, maintaining a monthly uptime percentage of at least 99.99%. Cloud loan software hosted on AWS can easily support the processing volumes and demands that vary weekly, monthly, and quarterly.
Unlike legacy loan origination software, cloud loan software is provided as a service hosted in AWS data centers. Three of the key benefits of this SaaS model include:
- Rapid Implementation: Once the cloud loan software has been provisioned in the AWS data center, you can securely access it via any device with a browser, including mobile devices;
- Faster Time-to-Value: Although the cloud loan software is fully functional out-of-the-box, each lender will want to customize it. A complete set of configuration menus enable business users (no need for technical programming skills) to quickly modify dozens of features and capabilities to meet their specific lending process requirements; and
- Frequent Software Updates: New versions and software patches are automatically applied to the loan software provisioned in the cloud. You can take advantage of improvements that continually enhance functionality and productivity as soon as they’re available.
SaaS also offers lenders the ability to extend the functionality of their cloud loan software through easy integration with other cloud-based lending services. Autonews confirms the growing industry trend regarding software integration. With SaaS, cloud loan software lenders can integrate with services to eliminate paper processes, support greater confidence in lending decisions, and detect and prevent potential fraud. Each of these additional capabilities helps lender profitability.
- Digital loan origination accelerates the process by capturing all required application information, including identification, income, and employment documents and electronically transmitting it to the lrender for rapid review and loan decisioning
- Alternative credit data (ACD) allows lenders to use non-traditional payment information to determine creditworthiness. ACD opens up new lending opportunities that would have otherwise been missed using bureau scores
- Automated fraud detection uses machine learning to review applications, determine the probability of misrepresented information, and the likelihood of fraud
The latest fintech lets you automate more of the lending process, identify new lending opportunities, and reduce the risk of fraud. In today’s highly-competitive market, you need to employ every advantage to reduce operational costs and risks.
Cloud, Amazon, and SaaS
There’s no better time for lenders to realize the advantages of SaaS capabilities of cloud loan software hosted on AWS. Significantly reduced CAPEX and the latest fintech capabilities can help you make better-informed lending decisions and reduce overall loan processing costs.
defi SOLUTIONS is a leading SaaS provider of cloud loan software. Loan origination, analytics, and integration with numerous cloud-based lending services can give you a competitive advantage. Take advantage of cloud, AWS and SaaS by contacting our team today or registering for a demo of defi LOS.
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